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Regulatory Awareness Program Corporate Office- Kaveri Bhavan 29 th August, 2019

Regulatory Awareness Program Corporate Office- Kaveri Bhavan 29 th August, 2019. Late 1950s to Late 1990s. From Late 1990s/After EA 2003. At the Beginning. Generation. Generation. Generation Transmission Distribution. Trading. Transmission. Transmission Distribution.

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Regulatory Awareness Program Corporate Office- Kaveri Bhavan 29 th August, 2019

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  1. Regulatory Awareness Program Corporate Office-KaveriBhavan 29thAugust, 2019

  2. Late 1950s to Late 1990s From Late 1990s/After EA 2003 At the Beginning Generation Generation Generation Transmission Distribution Trading Transmission Transmission Distribution Power Sector- A Retrospect Distribution End Consumer

  3. PRESENT STRUCTURE OF POWER SECTOR Energy Dept, GoK GENERATION COMPANIES DISTRIBUTION COMPANIES PCKL TRANSMISSION COMPANY (KPTCL) Central Generating Stations BESCOM MESCOM/ SEZ State Owned KPCL HESCOM CESC IPPs GESCOM HUKKERI CO-OP Society / SEZ RENEWABLES

  4. Provides for: • Constitution of KERC • Powers & Functions of the Commission • Re-organization of KEB/KPTCL • Licenses for Transmission & Distribution • Regulating Power purchase from Generating Stations • Advisory Committee, Arbitration & Appeal Karnataka Electricity Reforms Act 1999

  5. Established in November 1999 • 3 Member Commission, including Chairman • Chairman and Members are appointed by the State Government on the recommendations of a selection committee Karnataka Electricity Regulatory Commission

  6. To consolidate the laws relating to generation, transmission , distribution, trading and use of electricity. • Measures conducive to development of electricity industry, promoting competition. • Protect interest of consumers and supply of electricity to all areas. • Rationalisation of tariff • Ensuring transparent policies regarding subsidies • Promotion of efficient and environmentally benign policies. • Constitution of CERC, SERCs and ATE Electricity Act 2003- Objectives

  7. Issue of National Electricity Policy and Plan, Tariff Policy, National Policy on electrification and local distribution to rural areas by Central Government. • Generation of Electricity is de-licensed. Hydro Stations to obtain clearances from CEA • Licence for transmission, distribution & trading of electricity. • Interstate Transmission- Responsibilities of NLDC, RLDCs, Constitution of SLDC, Roles of CTU & STU • Distribution of Electricity- Licensees’ Roles & duty to supply , Open access, CGRF & Ombudsman, Issue of Standards on safety & performance, • Determination of generation, transmission and distribution tariff by CERC/SERCs • Constitution of CERC & SERCs ,functions, Advisory committees, ATE and its functions Electricity Act 2003- Provisions at a glance

  8. Access to electricity to all households by 2012 • Demand to be fully met by 2012 • Reliability, Quality & Efficient Power supply • Per capita consumption > 1000 units by 2012 • Minimum lifeline consumption of 1 unit/day • Financial and Commercial turn around of Sector • Protection of consumers’ interest National Electricity Policy- Objectives

  9. TRANSMISSION • The Transmission System requires adequate and timely investments and also efficient and coordinated action to develop a robust and integrated power system for the country. • The Central Government would facilitate the continued development of the National Grid • The Central Transmission Utility (CTU) and State Transmission Utility (STU) have the key responsibility of network planning and development • The State Regulatory Commissions have to notify the grid code National Electricity Policy…contd

  10. (a) Ensure availability of electricity to consumers at reasonable and competitive rates; (b) Ensure financial viability of the sector and attract investments; (c) Promote transparency, consistency and predictability in regulatory approaches across jurisdictions and minimise perceptions of regulatory risks; (d) Promote competition, efficiency in operations and improvement in quality of supply. Tariff Policy

  11. Competition • Market Development • Overcome shortages • Performance based cost & service regulations Tariff Policy…Focus

  12. Determination of tariff • Regulate electricity purchase and procurement process • Facilitate intra-state transmission and wheeling of electricity • Issue of Licenses • Promote renewable sources of energy • Specify Renewable Purchase Obligation • Adjudicate upon the disputes between Licensees & Generators • Levy fee for the purposes of this Act Functions of SERCs -Section 86 of the Act

  13. Specify State Grid Code • Specify or enforce standards with respect to quality, continuity and reliability of service by licensees • Fix the trading margin • Discharge such other functions as may be assigned to it under the Act. Functions of SERCs…..contd

  14. The State Commission shall advise the State Government on all or any of the following matters, namely :- (i) Promotion of competition, efficiency and economy in activities of the electricity industry; (ii) Promotion of investment in electricity industry; (iii) Reorganization and restructuring of electricity industry in the State; (iv) Matters concerning generation, transmission , distribution and trading of electricity or any other matter referred to the State Commission by the State Government. Functions of SERCs…..contd

  15. The State Commission shall ensure transparency while exercising its powers and discharging its functions. • In discharge of its functions the State Commission shall be guided by the National Electricity Policy, National Electricity Plan and Tariff Policy published under section 3 Functions of SERCs…..contd

  16. To undertake transmission of electricity through intra-State Transmission System. • To discharge all functions of planning and co-ordination relating to intra-State Transmission System with- • CTU, State Govt, Generating Companies, Regional Power Committees, CEA, Licensees, Any others as notified by State Govt. • To ensure development of an efficient, co-ordinated and economical system for intra-State transmission lines for smooth flow of electricity from a generating station to the load centres. • To provide non-discriminatory Open Access to Transmission Network Functions of KPTCL(As per Section 39 of EA 2003)

  17. The Following Regulations/Rules/ Guidelines were issued prior to EA 2003. KERC (Appointment of Chairman & other Members, Remuneration, Allowances and Conditions of Service) Rules 1999. 2. KERC (Accounting) Regulations 2000 3. KERC(Advisory Committee) Regulations 2000 4. KERC(Conduct of Meetings) Regulations 2000 5. KERC(Electricity Supply & Distn) Code 2000 6. KERC(General & Conduct of Proceedings) Regulations 2000 7. KERC(Licensing) Regulations 2000,2004 8. KERC (Recruitment & Conditions of Service) Regulations 2000 9. KERC (Tariff) Regulations 2000 10.Guidelines for Preparation of Load Forecast, Power Procurement Plan and Power Procurement Procedure Regulations Issued by KERC under KER Act 1999

  18. KERC (Conditions of Licence to ESCOMs) Regulations 2004. • KERC (Tariff) Regulations 2004 • KERC (Consumer Grievance Redressal Forum & Ombudsman) Regulations 2004 • KERC (Consumer Complaint Handling Procedure) Regulations 2004 • KERC (Licensees Standards of Performance) Regulations 2004 • KERC (State Advisory Committee) Regulations 2004 • KERC (Levy & Collection of Fee and charges by Load Despatch Centre) Regulations 2004 • KERC (Fees) Regulations 2004,2016 Regulations Framed Under EA 2003

  19. 9.KERC (Duty of Licensee to supply Electricity on request) Regulations 2004 10. KERC (Licensing) Regulations 2004 11. KERC (Eligibility conditions and Duties of Electricity Trader) Regulations 2004 12. KERC (Terms and Conditions for Open access) Regulations 2004/2006/2014/2017 13. KERC (Recovery of Expenditure) Regulations 2004/2005/2006/2007/2010/2011/2014/2017 14.KERC (Electricity Supply) Code 2004 15. KERC (Procedure for filing Appeal Before the Appellate Authority) Regulations 2005 16. KERC (Security Deposit) Regulations 2005 Regulations Framed Under EA 2003…..Contd

  20. 17. KERC (Terms & Conditions of Determination of Distribution Tariff) Regulations 2006/2012/2015 18. KERC (Terms & conditions of determination of Transmission Tariff) Regulations 2006/2012/2015 19. KERC (Manner of payment of Subsidy by State Govt) Regulations, 2008 20. KERC (Load Forecast) Regulations 2009 21.KERC (Terms & conditions of determination of Generation Tariff) Regulations 2009 22.KERC (Power Procurement from Renewable Sources by Distribution Licensees) Regulations 2011/2012/2015/2016/2017/2018 23. KERC (Fuel Cost Adjustment Charges) Regulations,2013/2013 24. KERC(Implementation of SRTPV Power Plants) Regulations, 2016 Regulations Framed Under EA 2003 ..Contd

  21. THANK YOU

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