What is the Central Electricity Regulatory Commission (CERC)?

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What is the Central Electricity Regulatory Commission (CERC)? Blog Image


Power Grid Corporation (POWERGRID) expects "no impact" from proposed changes in Operation & Maintenance (O&M) charges norms by Central Electricity Regulatory Commission (CERC), a top company official said recently.

About Central Electricity Regulatory Commission (CERC)

  • It is a statutory body established by the Government of India under the provisions of the Electricity Regulatory Commissions Act, 1998.
  • CERC is the Central Commission for the purposes of the Electricity Act, 2003, which has repealed the ERC Act, 1998.
  • The Commission consists of a Chairperson and four other members including the Chairperson, Central Electricity Authority, who is an ex-officio Member of the Commission.
  • The Commission intends to promote competition, efficiency, and economy in bulk power markets, improve the quality of supply, promote investments, and advise government on the removal of institutional barriers to bridge the demand supply gap and thus foster the interests of consumers. 
  • Mandatory Functions:
    • to regulate the tariff of generating companies owned or controlled by the Central Government;
    • to regulate the tariff of generating companies other than those owned or controlled by the Central Government specified in clause (a), if such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State;
    • to regulate the inter-State transmission of electricity;
    • to determine tariff for inter-State transmission of electricity;
    • to issue licences to persons to function as transmission licensee and electricity trader with respect to their inter-State operations;
    • Improve access to information for all stakeholders.
    • to adjudicate upon disputes involving generating companies or transmission licensee in regard to matters connected with clauses (a) to (d) above and to refer any dispute for arbitration;
    • to levy fees for the purposes of the Act;
    • to specify Grid Code having regard to Grid Standards;
    • to specify and enforce the standards with respect to quality, continuity, and reliability of service by licensees;
    • to fix the trading margin in the inter-state trading of electricity, if considered, necessary;
    • to discharge such other functions as may be assigned under the Act.

Q1) What is the Power Grid Corporation (POWERGRID)?

It is a Schedule ‘A’, ‘Maharatna’ Public Sector Enterprise of Govt. of India which was incorporated on 23rd Oct 1989 under the Company Act, 1956. POWERGRID is a listed Company, with 51.34% holding of Government of India and the balance is held by Institutional Investors and public.It is an electricity transmission utility. The company owns and operates a network of transmission lines and carries out power transmission projects.

Source: Power Grid unfazed by proposed O&M norms changes by CERC