The coal and power industry may just come under the ambit of one regulator. For, the Central Electricity Authority (CEA) has made a detailed presentation before the power ministry for setting up a common regulator for the two industries. It was suggested that Central Electricity Regulatory Commission (CERC), which takes up proposals for tariff and other issues related to the power sector, could take up a regulatory role for the coal industry as well.
?Power sector consumes nearly 70% coal. CEA has recommended that CERC?s infrastructure can be used to consider coal matters. Similar recommendations were earlier made by the Integrated Energy Policy Committee and TL Sankar committee. The present infrastructure of the CERC and also of the Appellate Tribunal for Electricity (ATE) is used to decide the regulatory matters of the coal sector,? a power ministry source told FE.
CEA has made its recommendations based on a study by Administrative Staff College of India (ASCI). CEA has suggested that the CERC could include a technical member (coal) for domain expertise. According to the regulator, such a move would preclude the duplication of costs and attendant regulatory procedures. CEA has also suggested that the ATE also be accorded jurisdiction over matters related to coal and that it should include representation from the coal sector.
TL Sankar committee had earlier observed that all stakeholders other than coal producers were in favour of a neutral body to fix coal prices in a transparent manner. The panel recommended that a mechanism created for price regulation could also evolve as the coordinating agency for all aspects of regulation in the coal sector. The various agencies which are currently governing and regulating the systematic assessment of all coal resources, collating the information, defining the boundaries of coal blocks/mines, and regulation of coal mine safety be brought together under the purview of a single agency.