The Telegraph
Since 1st March, 1999
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Power producers meet to plug reform gaps

New Delhi, Nov. 14: The Central Electricity Regulatory Commission has called a meeting of 15 independent power producers (IPPs) including Essar and Reliance, and financial institution and banks to explore areas where the regulator can step in to push power sector reforms. The meeting will be held on November 27.

CERC will also set up a 30-member advisory committee by the month-end that will aid and advise the power regulator on issues relating to policy, competition, quality and services.

The committee will comprise representatives from the power sector, banks, financial institutions, commerce, industry, agriculture, transport, academic, research agencies and former and existing chiefs of power public sector utilities. The committee will be headed by CERC chairman A. K. Basu.

“We want to bring in more transparency and effectiveness. The more views we get will help us in execution of our activities,” Basu said.

“The role of the Central Electricity Regulatory Commission is not just to fix tariff but also to bring in competition, efficiency and economy in the power sector,” he added.

Elaborating on the need for more interaction with power producers and consumers, Basu said the advisory committee will hold its first meeting by December and decide on the schedule for a regular meeting with power producers and consumers. Their suggestions will be examined by the CERC.

The chairman also said that the CERC has approved the National Thermal Power Corporation’s proposal for availability based tariff for the Kawas and Gandhar projects, under which the incentive for making the power station available for generation at 67 per cent plant load factor has been approved. The CERC has set the availability based tariff incentive at 77 per cent provided the power company can run the power station at a PLF of 80 per cent.

Around 52 cases were pending before the CERC as on April 1, 2001, of which it has given its decision on 44. Decisions on the remaining eight are pending due to legal issues.

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