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New Delhi , Sept 12

THE Government is working towards having integrated regulators for the energy and transport sectors. "It makes sense to have an energy regulator and a transport regulator, who would look at the regulation aspects in these sectors," said Mr Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission, at a seminar on power sector reforms.

He added that the Planning Commission was in the final stages of preparing a draft document on the integrated energy policy.

The cost plus approach being followed currently for setting generation tariffs in the power sector has to be dismantled and the shift towards competitive based tariff setting was a must, he said.

"Far more thinking needs to be done on introducing competition in the sector and the open access norms introduced by the Central Regulatory Electricity Commission is a big step in the direction."

He also said that the reforms in transmission and open access have brought about a clear improvement in grid management.

Mr R.V. Shahi, Power Secretary, said that coal and gas would continue to dominate the fuel requirement in the power sector in the short and medium term.

He added that the issue of taking up return on capital or the return on equity as the basis for tariff determination would be left to the regulatory establishment for the time being.

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