EXISTING ACTs & REGULATORY FRAME WORK

1. EXISTING ACTs & REGULATORY FRAME WORK

2. EXISTING ACTs • Electricity Act 2003 • Electricity Conservation Act 2001 • Karnataka Electricity Reforms Act 1999

3. A GLIMPSE OF ELECTRICITY ACT, 2003 • Anil Kumar K • Controller, Regulatory Affairs , KPTCL

4. ELECTRICITY ACT, 2003 • What is an Act ? • The need for the Electricity Act 2003 • Significance of Electricity Act 2003 • Purpose of Electricity Act 2003 • Various provisions under Electricity Act 2003 in regard to: • Electricity Trading, • Transmission, • Distribution and • Tariffs.

5. ELECTRICITY ACT, 2003 • What is an Act? • An Act is a legislation , passed by both houses of the legislature . • Central Act it will be passed by both the houses of the parliament and State Act both of houses of the State legislature

6. ELECTRICITY ACT, 2003 • The Need for enactment of Electricity Act 2003, was felt by the Central Government in the backdrop of the on going Economic Reforms in the country coupled with power sector reforms in various States. • Poor performance of SEBs which were formed and operating under IE Act 1910 and Electricity Supply Act 1948 forced the GoI to bring out an uniform and unified law to take care of the current needs of power sector in the areas of Generation, Transmission, Trading and Distribution of Electricity

7. ELECTRICITY ACT, 2003 Significance of Electricity Act ,2003, • It is a single legislation which addresses all the key areas of Electricity in the country. • It provides a road map for over all and uniform development of electricity sector in the country • It takes care of interests of consumers belonging to various sectors • It also aims to reform the sector to suit the needs of the present day requirement , in the light of globalization. • Through specific provisions it aims to bring in financial and commercial viability for power sector utilities.

8. ELECTRICITY ACT, 2003 Purpose of the Act, 1.To consolidate the laws relating to generation, transmission, distribution, trading and use of electricity. 2. To take measures conducive for development of electricity sector. 3. To promote Competition in the Power sector. 4. To protect the interests of Consumers 5. To rationalize the electricity tariffs 6. To Establish Regulatory commissions and Appellate Tribunal for Electricity.

9. ELECTRICITY ACT, 2003 An overview of Electricity Act 2003 • Enacted in 2003 and given to effect from 10th June 2003 • Consists of 18 ( XVIII) parts, 185 sections & one schedule.

10. ELECTRICITY ACT, 2003 New concepts introduced in Electricity Act 2003 • National Electricity Policy and Tariff Policy section 3 • Separation of Electricity Trading( Section 12 , 39 and 52) • Introduction of Open Access section 39(d) • Introduction of MYT ( Multi Year Tariffs) section 61(f) • Constitution of Appellate Tribunal and its functions ( sections 110 – 125)

11. SECTION WISE OVERVIEW OF THE ACT

12. SECTION WISE OVERVIEW OF THE ACT

13. SECTION WISE OVERVIEW OF THE ACT

14. PROVISIONS RELATING TO TRANSMISSION (SYSTEM OPERATION) • Section 26 – Provides for establishment of National Load Dispatch centre ( NLDC) to monitor and maintain grid operations at the national level. • Section 27 – Provides for establishment of Regional Load Dispatch Centre ( RLDC) to monitor and maintain grid operations at the regional level. • Section 31- Provides for establishment of Regional Load Dispatch Centre ( SLDC) to monitor and maintain grid operations at the State level. • NLDC and RLDC takes care of interstate transmission while SLDC takes care of intrastate transmission

15. PROVISIONS RELATING TO TRANSMISSION (SYSTEM OPERATION) • 26 (1) : NLDC is for optimum scheduling & Dispatch electricity among RLDCs • 26 (2) : NLDC shall not engage in Trading of electricity • Discussion Point : NLDC is now made Central Agency for Registration and issuance of RECs.

16. PROVISIONS RELATING TO TRANSMISSION (SYSTEM OPERATION) • 28 (3) : Functions of RLDC - Optimum Scheduling & dispatch in accordance with the contracts entered into with licensees or generating companies in the region, monitor grid operations, keep accounts of quantity of electricity, responsible for real time operations of the grid etc. • 32 (2) : Similar provision under the functions of SLDC. • Case Discussion : CERC order on the matter BESCOM v/s Generator

17. PROVISIONS RELATING TO TRANSMISSION (SYSTEM OPERATION) • 29(2) : Every licensee , generating company, generating station, substation and any other person connected with the operation of power system shall comply with the directions issued by the RLDC under sub section (1) • 29 (3) : All Directions issued by RLDCs to any Tr Licensee or other licensee shall be issued through SLDC and SLDC shall ensure that such directions are duly complied with by the licensee or generating company • Discussion:What is the role of SLDC?

18. PROVISIONS RELATING TO TRANSMISSION (SYSTEM OPERATION) • Section 33 (3) • The SLDC shall comply with the direction of the RLDC. • 29 (6) & 33 (6) provides for levying penalty not exceeding Rs.15 Lakhs & Rs.5 lakhs respectively for not complying with the directions of RLDC & SLDC.

19. IMPORTANT PROVISIONS RELATING TO TRANSMISSION • Section 34 – Provides for complying with the Grid Standards specified by CEA. CERC – IEGC. • At the State level the KERC has come out with the Grid Code for Karnataka Transmission system .KEGC 2015 and KEDC for Distribution Licensees. • Section 39 – Provides for formation of State Transmission Utility ( STU) “ The State Government may notify the Board or a Government Company as State Transmission utility , provided that the STU shall not engage in the business of trading of electricity”.

20. IMPORTANT PROVISIONS RELATING TO TRANSMISSION • Section 39(2) – Functions of State Transmission Utility ( STU) • a) to undertake transmission of electricity through intra-state transmission system. • b) to discharge all functions of planning and coordination relating to intra-state transmission with CTU, Govt, Gen Companies , RPCs, CEA , Licensees etc., • c) to ensure development of an efficient, coordinated and economical system of intra-state transmission lines for smooth flow of electricity from generating station to load center.

21. IMPORTANT PROVISIONS RELATING TO TRANSMISSION • Section 39, subsection (2) clause (d) and also section 40(c) very clearly states that the STU shall provide “ Non discriminatory Open Access to • (i) any licensee or generating company on payment of transmission charges or • (ii) to any consumer as and when such open access is provided by the State Commission on payment of transmission charge and surcharge thereon.”

22. IMPORTANT PROVISIONS RELATING TO TRANSMISSION • Section 67 – works of the licensee. • (1) can carry out works such as • a) to open and break up soil and pavement of any street , railway or tramway • b) to open and break up any sewer, drain or tunnel in or under any street , railway or tramway. • c) to alter the position of any line or works or pipes, other than a main sewer pipe. • d)to lay down and place electric lines, electrical plant and other works • e) to repair alter or remove the same • f ) to do all other acts necessary for transmission or supply of electricity.

23. IMPORTANT PROVISIONS RELATING TO TRANSMISSION • Section 67 – works of the licensee. • (2) appropriate government may by rules made in this behalf , specify • a) cases and circumstances where consent in writing is required for carrying out the works • b) the authority which may grant permission where the owner or occupier objects the work. • c) the nature and period of notice to be given before carrying out works. • d) the determination and payment of compensation or rent to the affected persons. • etc….

24. Legal Frame Work , Policies, Regulations and Organizational Set up in Indian Power Sector Anilkumar K Controller , KPTCL

25. Legal Frame Work • Constitution of India • Article 246 • Electricity matter - Entry thirty eight in Concurrent list • Electricity Laws • Rules and Regulations • Policies

26. Legal Frame Work • Constitution • Electricity Act 2003 • Energy Conservation Act 2001 • State Enactments

27. Policy Frame Work • National Electricity Policy • National Tariff Policy • Rural Electrification Policy • Solar Policy • Bio Fuel Policy

28. Regulatory Frame Work • Central Electricity Regulatory Commission • State Electricity Regulatory Commission • Joint Regulatory Commission • Appellate Tribunal for Electricity • Central Electricity Authority

29. Organizational Set up • Ministry of Power ( MoP) • Ministry of New & Renewable Energy ( MNRE) • Central Electricity Authority ( CEA) • Respective State Governments Electricity Departments • (Polices, Guidelines , Orders etc)

30. Organizational Set up • Regulatory Commissions • ATE • Special Courts • CGRF • Ombudsman

31. Organizational Set up • Central Generating Stations • State Owned Generating Stations • Independent Power Producers • Central Transmission Utility • State Transmission Utility • State Owned Distribution Entities • Private Distribution Entities

32. Organizational Set up • CGS & Major IPPs • POSOCO -NLDC -RLDC • SLDC • ALDC • Trading – IEX / PXIL • Trading licensees

33. THANK YOU