Electricity Act 2003 UPSC NOTE

  The Electricity Act, 2003 is the central law regulating the electricity sector. The Act provides for Electricity Regulatory Commissions a...

 

• The Electricity Act, 2003 is the central law regulating the electricity sector.

• The Act provides for Electricity Regulatory Commissions at both the central and state levels (CERC and SERCs).

• The Electricity Act 2003 provided the framework for the dismantling of the State Electricity Boards and the separation of generation, transmission and distribution into separate companies. 

• Electricity generation was delicensed, while transmission and distribution remained licenced and regulated activities. 

• Promoting competition, protecting consumer interests, and the supply of electricity to all were key objectives of the legislation.

• Functions of these Commissions (CERC and SERCs) include:

• Regulating and determining tariff

• Issuing licenses for transmission

• Distribution, and electricity trading

• Adjudicating upon disputes, within their respective jurisdiction.

Central Electricity Regulatory Commission:

• CERC is a regulator of the power sector in India.

• It intends to promote competition, efficiency and economy in bulk power markets, improve the quality of supply, promote investments and advise the government on the removal of institutional barriers to bridge the demand supply gap.

It is a statutory body functioning with quasi-judicial status under the Electricity Act 2003.