CERC to regulate tariffs from May 15

According to the notification issued, powers relating to regulating of tariffs, which was earlier with power ministry, is now transferred to an independent regulatory commission – CERC – that would fix tariffs of companies both in the public and private sector catering to more than one state.

"We would soon start listening to issues relating to the fixation of tariffs by various generating and transmission entities from consumers so has to regulate the tariff structure in a transparent manner," Rao said.

There were certain pending issues relating to fixation of tariffs by state-owned NationalThermal Power Corporation (NTPC) which also would be looked into by the commission, he said.

With regard to the gridcode, Rao said by the end of July the country would have a national gridcode in place that would bring out a set of rules and regulations for transmission utilities.

"Powergrid has already submitted its format of gridcode to us and CERC would soon be advertising it in various national dailies to invite views from the public," he said.

Rao said, the proposed gridcode would have rules for transmission utilities engaged in intra-state transmission and also inter-state transmission.

While Powergrid would be the operating agency for the grid in the country, Regional Load Dispatch Centres (RLDCs) would be responsible for intra-state transmission, he said.

The commission might think of delegating certain powers of CERC to Powergrid for imposing penalties for those failing to abide by the gridcode, but the regulation part would be kept with the independent body, the CERC chairman said.

Raosaid the commission planned to have a public hearing with regard to the gridcode by the end of June during which Powergrid would have to reply to the queries of the people with regard to the gridcode.

"After firming up all this exercise the commission would come out with a official gridcode by the end of July," he said.