Central Electricity Regulatory Commission (CERC)

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Context

• Power Grid Corporation (POWERGRID) anticipates "no impact" from proposed changes in Operation & Maintenance (O&M) charges norms by the Central Electricity Regulatory Commission (CERC), according to a senior company official.

Central Electricity Regulatory Commission (CERC)

• The Central Electricity Regulatory Commission (CERC) is a statutory body responsible for regulating the tariff of power generated or sold in India.
• Establishment: CERC was established by the Government of India under the provisions of the Electricity Regulatory Commissions Act, 1998.
• Jurisdiction: CERC regulates tariffs for power generated or sold by generating companies, interstate transmission of electricity, and the operation of the national power grid.
• Functions: CERC regulates tariffs for the sale of electricity, including fixing the tariff for generating companies and transmission licensees, granting licenses for inter-state transmission of electricity, adjudicating upon disputes between licensees and generating companies, and regulating the operations of the power systems and developing a market for power.
• Composition: The commission consists of a chairperson and four other members appointed by the central government.
• Tariff Regulations: CERC issues tariff regulations periodically, which outline the methodology for determining tariffs for various categories of entities in the power sector.
• Regulatory Oversight: CERC ensures compliance with regulations, resolves disputes, and promotes efficiency and competition in the power sector.
• Impact: CERC's decisions and regulations have a significant impact on the cost of electricity for consumers, as they directly influence the tariffs set by power companies.
• Recent Developments: CERC has been involved in various regulatory issues, including setting tariffs for renewable energy projects, ensuring grid stability, and promoting sustainable development in the power sector.

Overall, CERC plays a crucial role in ensuring the efficient and sustainable development of the power sector in India.