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LEGAL FRAMEWORK, POLICIES AND REGULATIONS AND ORGANIZATIONAL SET UP IN INDIA

LEGAL FRAMEWORK, POLICIES AND REGULATIONS AND ORGANIZATIONAL SET UP IN INDIA. -Dr. Aditi Raja Director, Finance , KPTCL 7.5.2011. CONSTITUTION OF INDIA. ARTICLE 246(2) LIST 3 OF SEVENTH SCHEDULE CONCURRENT SUBJECT CENTRAL GOVERNMENT HAS PRE-EMPTIVE POWERS IN CASE OF A CONFLICT.

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LEGAL FRAMEWORK, POLICIES AND REGULATIONS AND ORGANIZATIONAL SET UP IN INDIA

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  1. LEGAL FRAMEWORK, POLICIES AND REGULATIONS AND ORGANIZATIONAL SET UP IN INDIA -Dr. Aditi Raja Director, Finance , KPTCL 7.5.2011

  2. CONSTITUTION OF INDIA • ARTICLE 246(2) • LIST 3 OF SEVENTH SCHEDULE • CONCURRENT SUBJECT • CENTRAL GOVERNMENT HAS PRE-EMPTIVE POWERS IN CASE OF A CONFLICT

  3. EARLY LEGISLATION • INDIAN ELECTRICTY ACT, 1910 • ELECTRICITY SUPPLY ACT,1948 • AMENDMENTS TO THESE ACTS

  4. EARLY ORGANIZATIONAL LOGIC • ELECTRICITY IS A NATURAL MONOPOLY • VERTICAL INTEGRATION OF THE SECTOR ESSENTIAL • CO-ORDINATION REQUIRED THROUGH A STRONG BODY • ECONOMIES OF SCALE TO BE CAPTURED • PUBLIC OWNERSHIP BEST

  5. MODIFIED ORGANIZATIONAL LOGIC • SCALE ECONOMIES NO LONGER REQUIRED • CO-ORDINATION CAN BE BETTER DONE BY THE MARKET • REGULATION SHOULD BE THROUGH PERFORMANCE INCENTIVES • EFFICIENT CONSUMPTION WILL BE PROMOTED AUTOMATICALLY • PUBLIC, PRIVATE AND PUBLIC-PRIVATE OWNERSHIP POSSIBLE

  6. STEPS FOR FURTHER LEGISLATION • GOVERNMENT OF INDIA RESOLUTION-POLICY ON PRIVATE PARTICIPATION IN THE POWER SECTOR, 1991 • MEGA POWER POLICY,1995 • COMMON MINIMUM NATIONAL ACTION PLAN FOR POWER,1997

  7. IN THE CENTRE • CENTRAL GOVERNMENT OVERALL POLICY MAKER FOR THE COUNTRY • MINISTRY OF POWER AT THE HELM OF AFFAIRS • EXISTENCE OF A CENTRAL ELECTRICITY AUTHORITY • LARGE FINANCIAL INSTITUTIONS AT THE CENTRE • LARGE GENERATION AND TRANSMISSION BODIES

  8. IN THE STATES • MONOLITHIC UTILITIES BROKEN DOWN • DEGREE OF AUTONOMY VARIES • PRIVATE SECTOR VERY ACTIVE • LOAD DESPATCH CENTRES DEVELOPED AS INDEPENDENT UNITS

  9. EVEN BEFORE THE ELECTRICITY ACT FORMALLY CAME INTO EXISTENCE…….

  10. STEPS TOWARDS RESTRUCTURING OF EXISTING UTILITIES • DE-INTEGRATE SEBs INTO GENERATION, TRANSMISSION AND DISTRIBUTION • FURTHER DE-INTEGRATE EACH OF THESE UNITS • OWNERSHIP TO BE MODIFIED • REGULATION TO BE INTRODUCED AS A SURROGATE FOR COMPETITION

  11. ELECTRICITY ACT, 2003 • COMPETITION IS THE BUZZ WORD • OPEN ACCESS • INDEPENDENT LOAD DESPATCH CENTRES • PRIVATE TRANSMISSION LICENSEES • EMPAHSIS ON RURAL ELECTRIFICATION • DECENTRALIZED MANAGEMENT OF DISTRIBUTION • ATTENTION TO EFFICIENCY • THEFT TO BE CURTAILED

  12. LEGISLATION • ELECTRICITY ACT,2003 -NATIONAL ELECTRICITY POLICY -NATIONAL TARIFF POLICY -RURAL ELECTRIFICATION POLICY -GUIDELINES AND REGULATIONS CAN BE ISSUED BY THE CERC AND STATE ERCs

  13. RELEVANT PROVISIONS • SEC 11-IN CONJUNCTION WITH SEC 40c • SEC 39-TRANSMISSION AGENCY SHOULD NOT TRADE • SEC 65-SUBSIDY • SEC 135- THEFT OF ELECTRICITY • SEC 150-ABETMENT • SEC 178-IN CONJUCTION WITH SEC 28(4)

  14. LOAD DESPATCH CENTRES • SEC 26 FOR SETTING UP LDC AT CENTRE. • SEC 27 FOR SETTING UP REGIONAL LDCs. • SEC 28 FUNCTIONS OF REGIONAL LAOD DESPATCH CENTRES ( SUB-SEC 4 OF PARTICULAR IMPORTANCE) • SEC 31 LDCs IN THE STATEs • SEC 32 FUNCTIONS OF LDC IN THE STATEs

  15. NATIONAL ELECTRICITY POLICY • ACCESS TO ELECTRICITY TO ALL HOUSEHOLDS • AVAILABILITY OF POWER FOR PEAK LOADS • ENHANCING PER CAPITA AVAILABILITY • FINANCIAL TURNAROUND OF THE SECTOR • CONSUMER INTERESTS TO BE PROTECTED • RURAL ELECTRIFICATION IMPORTANT • ENERGY CONSERVATION • INDEPENDENCE OF LOAD DESPATCH CENTRES

  16. INDEPENDENCE OF LOAD DESPATCH CENTRES • RING FENCING OF THE LDCs • INDEPENDENCE TO LDCs • CREATION OF NATIONAL LOAD DESPATCH CENTRE • FORMATION OF POSOCO (POWER OPERATION SYSTEM COMPANY)

  17. BIRTH OF POSOCO • RLDCs AND SLDCs WERE SET UP UNDER THE UNIFIED LOAD DESPATCH AND COMMUNICATIONS PROJECT. • NATIONAL LOAD DESPATCH CENTRE (NLDC) CONSTITUTED IN 2009 • POSOCO CREATED BY MERGING NLDC WITH THE RLDCs in March 2010 • CERC REGULATORY COMMISSION (FEES AND CHARGES OF REGIONAL DESPATCH CENTRE AND OTHER RELATED MATTERS) REGULATIONS, 2009.

  18. NATIONAL TARIFF POLICY • EMPAHSIS ON COMPETITION • PROMOTE INVESTMENT IN THE SECTOR • CAPTIVE GENERATION TO BE ENCOURAGED • MULTI YEAR TARIFF • TWO PART TARIFF • ALL POWER PURCHASE COSTS TO BE LEGITIMATE • OPEN ACCESS • CDM BENEFITS TO BE TAKEN

  19. RURAL ELECTRICFICATION POLICY • COMMON MINIMUM PROGRAMME • LAUNCH OF RAJIV GANDHI VIDYUTIKARAN YOJNA • CREATION OF REDB, VEI AND DDB • LOCAL INVOLVEMENT IN RURAL ELECTRIFICATION TO BE ENCOURAGED

  20. REGULATIONS • SEC 178 OF ELECTRICITY ACT PERMITS CERC TO ISSUE REGULATIONS • SEC 181 OF ELECTRICITY ACT PERMITS STATE ERCs TO ISSUE REGULATIONS • SEC 110-APPELLATE TRIBUNAL FOR ELECTRICITY

  21. THANK YOU

  22. Doubts!

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