Role of Electricity Regulatory Commission in KPI

The new Electricity Act, 2003, has empowered Electricity Regulatory Commission (ERC) to play an extremely decisive role in all matters associated to this business of electricity. The ERCs are working in several states and also suggesting a National Tariff Policy (NTP) for the whole country.

The major functions of ERC are:

1) Evolving a policy for setting the tariff for purchase and sale of electricity involving the retail tariffs to be paid through the end customer.

2) Licensing the distribution and retail supply (as per the Act, these functions are bundle together and cannot be segregated), trading and transmission functions.

3) Setting several standards of supply and the performance codes to be adhered to/ maintained by the licensee.

4) Ensuring that the sector works in an efficient fashion such that the value chain justly reflects the economic way of reaching the electricity to the consumer.

5) Setting tariff and other parameters to ensure that open access is facilitate in transmission and distribution. This includes the identification and eliminated of cross-subsidies over a period of time.