Regulatory Rule Governing Indian Power Sector

1684 Words7 Pages
Independence of the State Electricity Regulatory Commission has continued indefinable in reality. Scopes to restoration the current regulatory structure may be discovered with the aim to keep the State government at arm’s length from the tariff setting application. It is necessary that the current controlled structure of the distribution sector be transformed and competition be stimulated. One of the ways to obvious this is to distinct posture and gratified businesses of the distribution segment. Regulatory commissions should alert the consumers about the rationale of tariff setting and notify them before every tariff amendment. Every concerned investor should admit the economic significance at a national level of the present crisis. Political will of the governments (i.e., State and Central) is vital to overwhelmed many of the challenges.
Discoms in many States are earning massive losses due to increasing, unimpeded regulatory assets. It is essential that the States explore ways to settle them in a time bound manner without further postponement. The regulatory commissions need to plan ways to keep the State governments at arm’s length from the State utilities. The governments should effort to attract greater contribution of private discoms.
The Electricity Act, 2003 defines the duty of a distribution licensee to produce and maintain an efficient, synchronized and economical distribution system in his area to supply. It also
Get Access