Don't Undermine Regulatory Process: Electricity Act 2003 Limits Government Role To Being A Catalyst And Policy Maker

Recently, the power ministry circulated Rules under the Electricity Act 2003 relating to change in law, transmission system and planning, and late payment surcharge.

- Somit Dasgupta

This has led to the Central Electricity Regulatory Commission issuing statutory advice under Section 79(2) of the EA 2003 wherein they have contested the locus standi of the government to issue such Rules.

CERC, in their advice to the government, have quoted several Supreme Court judgments, the pith and substance of which is that the subjects which have been covered in the Rules are the substantive functions of CERC and SERCs. The advisory adds that legislative and regulatory power on matters relating to open access, licensing, tariff, grid code, market development lies with the central and state commissions, and no such power vests with the central and state governments.