Power Ministry Says No To IIM-A Idea Of CEA-CERC Merger

“Even though the Electricity Act (EA) 2003 envisages separate identify for CERC and CEA and we also feel the necessity of separation in the short run, the two regulators should be merged eventually, as there are substantial synergies between them,” IIM-A said in its report on CEA restructuring submitted to the power ministry. Sources told the FE that the IIM-A report was discussed threadbare at the recent meeting convened by the power secretary RV Shahi.

However, the power ministry has flatly rejected IIM-A’s recommendations in this regard and observed that the tariff fixation is in the exclusive domain of electricity regulatory commissions (ERCs) and no other entity or government has any role in this regard.

EA 2003 gives CEA the mandate of an ERC’s advisor to the Centre in all technical matters, including measures for reducing cost of power. The advisory has been left at the wisdom of ERCs.

“It is true that CEA has acquired technical expertise over the years. However, to say that no other body (especially ERCs) has such domain knowledge at all, is not a just presumption. Even the techno-economic clearance (TEC) of CEA have been fallible in the past. Moreover, the role given by the statute to the ERCs and the aspirations of public at large are sufficient

... contd.