Download - Regulatory Freame Work in Inida
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Electricity RegulatoryElectricity Regulatory
Frame Work in IndiaFrame Work in India
Anil Kumar KAnil Kumar K
AO, KPTCLAO, KPTCL
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In this sessionIn this sessionWhy Regulator ?Why Regulator ?
What is Regulation ?What is Regulation ?What is the Role of Regulator ?What is the Role of Regulator ?
The Regulatory bodiesThe Regulatory bodies Few Regulations Governing SystemFew Regulations Governing System
OperationOperation Cursory LookCursory Look
Case IncidentCase Incident
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Pre Regulatory EraPre Regulatory Era SEBs were the mastersSEBs were the masters
Deteriorating Financial HealthDeteriorating Financial Health Poor Operational efficiencyPoor Operational efficiency
The Need for Regulator came fromThe Need for Regulator came from
-- LPG PolicyLPG Policy
-- CMNAPP ( Demand Supply Gap and increasingCMNAPP ( Demand Supply Gap and increasinglosses)losses)
-- Immediate Competition not possibleImmediate Competition not possible-- Immediate Mechanism Required to controlImmediate Mechanism Required to control
losses, rationalize tariffs and improve serviceslosses, rationalize tariffs and improve services
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RegulationRegulationRegulationRegulation Dictionary meaningDictionary meaning
AnAn authoritativeauthoritative rulerule
The state ofThe state ofbeing controlledbeing controlledoror
governedgoverned The act ofThe act ofcontrolling or directingcontrolling or directing
according to ruleaccording to rule
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RegulationRegulation
RegulationRegulation is "controlling human oris "controlling human orsocietal behavior by rules or restrictions.societal behavior by rules or restrictions.
EgEg: Norms for T & D loss reduction: Norms for T & D loss reduction
One can consider regulation as actions ofOne can consider regulation as actions of
conduct imposingconduct imposing sanctionssanctions (such as a(such as afinefine).).
EgEg; penalty for violation of grid code; penalty for violation of grid code
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Basic Objectives of RegulationBasic Objectives of RegulationProtect interests of consumersProtect interests of consumers
Protect interests of serviceProtect interests of service
providersproviders
Provide transparency,Provide transparency,independency and publicindependency and public
participationparticipation
Prevent exploitation, restrictivePrevent exploitation, restrictiveand unfair practicesand unfair practices
Ensure quality of service toEnsure quality of service toconsumersconsumers
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Regulatory BodiesRegulatory Bodies Electricity is a subject matter of concurrent listElectricity is a subject matter of concurrent list
The Electricity Regulatory Commissions Act 1998The Electricity Regulatory Commissions Act 1998paved the way for Electricity Regulation in thepaved the way for Electricity Regulation in theCountryCountry
Central Electricity Regulatory Commission (CERC)Central Electricity Regulatory Commission (CERC)
State Electricity Regulatory Commission (SERC)State Electricity Regulatory Commission (SERC)
Joint Commission ( JERC)Joint Commission ( JERC)
Appellate Tribunal for Electricity ( ATE)Appellate Tribunal for Electricity ( ATE)
Forum of Regulators ( FOR)Forum of Regulators ( FOR)
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Electricity RegulationElectricity Regulation ERC Act 1998ERC Act 1998 RepealedRepealed
Electricity Act 2003Electricity Act 2003 1010thth June 2003June 2003
Sections 76Sections 76--90 of Electricity Act90 of Electricity Act
2003 deals with Constitution, Power2003 deals with Constitution, Power
and Functions of the Central andand Functions of the Central and
State CommissionState Commission
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Composition of CERC, SERC & JCComposition of CERC, SERC & JC Composition ofComposition of Central CommissionCentral Commission
((SnSn 76(5)76(5)-- Chairperson and 3 members appointed by CentralChairperson and 3 members appointed by CentralGovernmentGovernment
-- Quasi Judiciary bodyQuasi Judiciary body
Composition ofComposition ofState CommissionState Commission
-- Chairperson and 2 membersChairperson and 2 members
-- Quasi Judiciary bodyQuasi Judiciary body
Composition ofComposition ofJoint CommissionJoint Commission
-- One member from each StateOne member from each State-- One among them will be a chairperson or by rotationOne among them will be a chairperson or by rotation
TwoTwo JCsJCs Manipur,Manipur, MizoramMizoram andand GoaGoa & other& otherUTsUTs
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CERCCERC Functions of the Commission (Functions of the Commission (SnSn 79)79)
-- To regulate the tariff of Generation andTo regulate the tariff of Generation andTransmissionTransmission ( Interstate Transactions)( Interstate Transactions)
-- To issue licenses to Transmission and TradingTo issue licenses to Transmission and Trading
ActivitiesActivities
-- To specify Grid CodeTo specify Grid Code
-- To adjudicate Disputes betweenTo adjudicate Disputes between TrTr licensee andlicensee and
Generating CompaniesGenerating Companies
-- To fix trading margin for interstate trading ofTo fix trading margin for interstate trading ofelectricityelectricity
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POWERS OF CERC/SERC/JCPOWERS OF CERC/SERC/JC
Same power as that of a Civil CourtSame power as that of a Civil Court
Summoning and enforcing the attendance of anySummoning and enforcing the attendance of anyperson and examining him on oathperson and examining him on oath
Discovery and production of any document or otherDiscovery and production of any document or other
material object producible as evidence;material object producible as evidence;
Receiving evidence on affidavits;Receiving evidence on affidavits;
Requisitioning of any public record;Requisitioning of any public record;
Reviewing its decisions, directions and ordersReviewing its decisions, directions and orders;;
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Appellate Tribunal for ElectricityAppellate Tribunal for Electricity ( ATE)( ATE) Constituted in terms of Section 110 of Electricity ActConstituted in terms of Section 110 of Electricity Act
2003. in April 2004 and commenced its operations2003. in April 2004 and commenced its operationson 21st July 2005on 21st July 2005
Consists of Four members, of which two are judicialConsists of Four members, of which two are judicialmembers and two are non judicial members. Eachmembers and two are non judicial members. Eachbench shall have one Judicial member.bench shall have one Judicial member.
PurposePurpose is to hear appeals against theis to hear appeals against the ordersorderspassed by adjudicating officer or order passed bypassed by adjudicating officer or order passed by
Appropriate Commission.Appropriate Commission. ( note : No jurisdiction on( note : No jurisdiction onregulations issued by Commission)regulations issued by Commission)
Appeal to be filed within 45 days of receipt of theAppeal to be filed within 45 days of receipt of theOrder. And ATE to pass final Orders within 180 daysOrder. And ATE to pass final Orders within 180 daysfrom the date of receipt of appeal. ;from the date of receipt of appeal. ;
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Central Electricity Authority ( CEA)Central Electricity Authority ( CEA)
Was constituted under section 3 ofWas constituted under section 3 of
Electricity ( supply) Act 1948 butElectricity ( supply) Act 1948 butcontinued under section 70 of EAcontinued under section 70 of EA
2003.2003.
Shall consist of not more than 14Shall consist of not more than 14
members.members.
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Central Electricity Authority ( CEA)Central Electricity Authority ( CEA)FunctionsFunctions ((to name a few)to name a few)
specify the technical standards forspecify the technical standards forconstruction of electrical plants, electricconstruction of electrical plants, electriclines and connectivity to the grid;lines and connectivity to the grid;
specify the safety requirements forspecify the safety requirements forconstruction, operation and maintenance ofconstruction, operation and maintenance ofelectrical plants and electric lines;electrical plants and electric lines;
specify thespecify the Grid StandardsGrid Standards for operationfor operationand maintenance of transmission lines;and maintenance of transmission lines;
advise the Central Government on anyadvise the Central Government on anymattermatter
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Forum of Regulators ( FOR)Forum of Regulators ( FOR) The Forum of Regulators (FOR) wasThe Forum of Regulators (FOR) was
constituted vide Notification dated 16thconstituted vide Notification dated 16thFebruary, 2005 in pursuance of theFebruary, 2005 in pursuance of theprovision under section 166(2) of theprovision under section 166(2) of theElectricity Act, 2003.Electricity Act, 2003.
The Forum consists of Chairperson ofThe Forum consists of Chairperson ofCentral Electricity Regulatory CommissionCentral Electricity Regulatory Commission
(CERC) and Chairpersons of State(CERC) and Chairpersons of StateElectricity Regulatory CommissionsElectricity Regulatory Commissions(SERCs).(SERCs).
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Forum of Regulators ( FOR)Forum of Regulators ( FOR)
Analysis of the tariff orders and otherAnalysis of the tariff orders and otherorders of Central Commission and Stateorders of Central Commission and State
CommissionsCommissions Laying of standards of performance ofLaying of standards of performance of
licensees as required under the Act.licensees as required under the Act.
Undertaking research work inUndertaking research work in--house orhouse orthrough outsourcing on issues relevant tothrough outsourcing on issues relevant topower sector regulation;power sector regulation;
Evolving measures for protection ofEvolving measures for protection ofinterest of consumers and promotion ofinterest of consumers and promotion ofefficiency, economy and competition inefficiency, economy and competition inpower sector;power sector;
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Few Regulations GoverningFew Regulations Governing
System OperationSystem Operation
The IEGC RegulationsThe IEGC Regulations
Grant of Connectivity and OpenGrant of Connectivity and OpenAccess RegulationsAccess Regulations
UI Charges RegulationsUI Charges RegulationsMeasures to relieve congestion inMeasures to relieve congestion in
real time operation Regulationsreal time operation Regulations
Sharing of Interstate TransmissionSharing of Interstate Transmission
Charge and Losses, RegulationsCharge and Losses, Regulations
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Impact of Regulatory MechanismImpact of Regulatory Mechanism
on system operationon system operation
Grid StabilityGrid Stability ABT RegimeABT Regime
Better Management of grid throughBetter Management of grid throughenforcement of Intra State ABTenforcement of Intra State ABT
Facilitation of open accessFacilitation of open access Move towards Independent SystemMove towards Independent System
OperationOperation
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Karnataka CaseKarnataka CaseCERC Levied Penalty ofCERC Levied Penalty ofRsRs. 17. 17 LakhsLakhs
for violation of grid code. ( 6.5.09)for violation of grid code. ( 6.5.09) The Order was appealed before ATEThe Order was appealed before ATE
in appeal No. 94/2009in appeal No. 94/2009 ATE Passed Order on 11.01.2010 andATE Passed Order on 11.01.2010 and
quashed the CERC Orderquashed the CERC Order
CERC Refunded the PenaltyCERC Refunded the PenaltyRecovered.Recovered.
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Karnataka CaseKarnataka CaseGroundsGrounds
CERC Relied upon SEM ReadingCERC Relied upon SEM Readinginstead of SCADAinstead of SCADA
Action taken by KPTCL ( LDC) forAction taken by KPTCL ( LDC) for
restoring the frequency back to 49restoring the frequency back to 49
Hz not recognisedHz not recognised
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Karnataka CaseKarnataka CaseClause 5.4.2 of IEGC
(a) As mentioned above the utilitiesshall endeavor to restrict their netdrawl from the grid to within the
respective drawl schedule wheneverthe system frequency is below 49.5Hz. When the frequency falls below
49 Hz requisite load shedding(manual) shall be carried out tocurtail the over drawl.
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Delhi CaseDelhi CaseCERC Adjudication Case 1 of 2009CERC Adjudication Case 1 of 2009
Delhi SLDC V/s NRLDCDelhi SLDC V/s NRLDC
Delhi SLDC failed to comply with theDelhi SLDC failed to comply with the
directions of NRLDCdirections of NRLDCDelhi SLDC Argues that , it is notDelhi SLDC Argues that , it is not
responsible forresponsible for overdrawloverdrawl.. DiscomsDiscoms
responsibleresponsible
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Delhi CaseDelhi CaseFacts of the CaseFacts of the Case
Para 5.4.2 (b) of the Indian Electricity (theGrid Code) provides as
Further, in case of certain contingencies
and/or threat to system security, theRLDC may direct an the State LoadDispatch Centre to decrease its drawal bya certain quantum. Such directions shallimmediately be acted upon.
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Delhi CaseDelhi CaseFacts of the CaseFacts of the Case
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Delhi CaseDelhi Case Adjudicator rejected the argument ofAdjudicator rejected the argument of
Delhi and held Delhi SLDCDelhi and held Delhi SLDCresponsible for the lapseresponsible for the lapse
Imposed fine ofImposed fine ofRsRs. 50,000 per. 50,000 per
default.default.