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Electricity Regulation in India- Recent Reforms and their Impact

Electricity Regulation in India- Recent Reforms and their Impact. Study Team: SKN Nair Assisted by: Divjot Singh

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Electricity Regulation in India- Recent Reforms and their Impact

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  1. Electricity Regulation in India- Recent Reforms and their Impact Study Team: SKN Nair Assisted by: Divjot Singh Nandini Acharya 4, December 2006

  2. Background India’s Electricity Reforms evolved over a dozen years Broadly the reforms fit into three ascending levels Chronologically, the milestones were 1992, 1998 and 2003 Regulatory Reform relates to the middle point. (A few states moved faster) In broad terms, electricity regulation has been active in the country for about six to seven years Our evaluation is limited by this time frame

  3. Regulatory Architecture: Winners and Losers Governments: Policy Direction, Administrative Control of Regulator (Appointment / Removal, Budget) Administrative Tribunal of Electricity: Limited range of appeals, but higher in hierarchy Central Regulator: Regulation of areas of national and inter-state dimension, Advisor to Central Govt. State Regulator: Regulation of all state-specific areas, most importantly retail pricing Central Electricity Authority: Technical and Safety standards, plus range of Advisory Functions The architecture is moulded by the existing constitutional power sharing arrangement

  4. Regulatory Architecture: Winners and Losers (2) State Governments have yielded regulatory space over a politically sensitive area This has its repercussions in Regulator: Government Interface Central and State Regulators are not hierarchically connected But primacy of Central Regulator is recognised through work allocation and in coordination Central Govt. is a gainer: it now has statutory backing in laying down policy and a channel to influence State regulation

  5. Four pre-eminent, over-riding aims Capacity Addition Shortages Theft and Loss Tariffs Findings show limited gains in last two areas

  6. Capacity Addition

  7. Shortages

  8. Shortages

  9. Theft and Loss

  10. Tariffs

  11. Future of electricity regulation – Options Regional Regulators Multi Utility Regulation at State Level Three Super- regulators for Energy, Transport, Communications Continuing the Status Quo Short message of the paper

  12. Thank You

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