The government is thinking of setting up regional regulators to review the performance of independent state electricity regulatory commissions, as a rising gap between average revenue and costs has worsened the financial position of power distribution companies.
The proposal, first mooted by an advisory committee led by former power minister Suresh Prabhu, needs an amendment to the Electricity Act, 2003 and could face resistance from state governments. At present, the Centre can issue advisories to state regulatory commissions, but these are non-binding.
The committee on integrated development of power, coal and renewable energy had recommended the ‘establishment of regional regulators in consultation with states at an appropriate time and a mechanism for review of performance of regulatory commissions through Forum of Regulators, etc’. Read More