Cabinet approves an MoU between India and the US for exchange of information in areas of mutual interest in the electricity sector.
- The MoU is between the Central Electricity Regulatory Commission (CERC), India and Federal Energy Regulatory Commission (FERC), USA.
- The MoU will help in improving regulatory and policy framework for developing an efficient wholesale power market and enhancing grid reliability.
ABOUT CENTRAL ELECTRICITY REGULATORY COMMISSION (CERC):
- CERC is a statutory body functioning under Sec 76 of the Electricity Act 2003.
- It was initially constituted under the Electricity Regulatory Commissions Act, 1998 in the year 1998.
- 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.
FUNCTIONS OF CERC:
- 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, 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;
- to adjudicate upon disputes involving generating companies or transmission licensee 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.
- CERC also performs a few advisory functions such as formulating the National Electricity Policy and Tariff Policy, etc.