The Hindu Business Line : CERC moots uniform tariff for SERCs

On the anvil
KPMG, a consultancy major, has been engaged to prepare a suitable tariff structure for all States.
The Government had ambitious plans to expand inter-regional transmission network from the existing 10,000 km to 36,000 km by 2012.

Kolkata , July 11

The Central Electricity Regulatory Commission (CERC) is keen to see that all State Electricity Regulatory Commissions (SERCs) introduce an uniform power tariff structure for all type of consumers as early as possible. CERC feels that such a tariff regime is required for the growth of the country's power sector.

Highlighting this here on Tuesday, the CERC Chairman, Mr A.K. Basu, said that KPMG, a consultancy major, has been engaged to prepare a suitable tariff structure for all States.

KPMG would study the existing tariff structure of six States before submitting its report to CERC. SERCs will then be advised to implement the new tariff structure, which will, in likelihood be effective for a period of five years instead of the existing practice of fixing tariff for one year.

Speaking at an interactive session organised by the Merchants' Chamber of Commerce, Mr Basu said that CERC plans to implement "open access" policy for all power distribution. Under such a policy, power distribution companies will be allowed to switchover to draw power from any generating companies if they find it be remunerative and beneficial for consumers.

He pointed out the Union Government had plans to double power generation capacity from 1,00,000 MW in 2000 to 2,00,000 MW by 2012, entailing an investment of about $100 billion for generation and another $100 billion for transmission. In a bid to achieve the target, the Union Government had already allowed 100 per cent FDI in the power sector, allowed private sector to enter generation and distribution, targeted to set up eight ultra mega thermal power projects each with a capacity of 4,000 MW. This apart, priority would be given to hydel projects.

Mr Basu said that the Government had ambitious plans to expand inter-regional transmission network from the existing 10,000 km to 36,000 km by 2012. While inter-State trading on power had been allowed, CERC wanted to see more private companies in transmission business. He said that transmission network in the western region should be built on 100 per cent private participation.

CERC had given 20 licences for undertaking inter-State power trading. He advised traders to evolve a trading model suitable for India. Meanwhile, a forum has been formed comprising 22 State regulatory commissions.