Need to establish South Asian power trading market: CERC

November 6, 2012

India’s power sector regulator Central Electricity Regulatory Commission (CERC) has suggested establishing a South Asian power trading market to help alleviate acute electricity deficits faced by many nations in the region.
It recommended that a SAARC sub regional power trading market will be beneficial to member nations. It will enhance benefits of competition and efficiency through trading on power exchanges.
Such a market would assist in trading electricity b/w India and other countries such as Bangladesh, Nepal, Bhutan and Sri Lanka, Pakistan.
Energy demand in the SAARC region is projected to grow at an annual rate of 5%.
India has power transmission links with Bhutan and Nepal while negotiations are on for similar lines with Bangladesh and Sri Lanka.

About Central Electricity Regulatory Commission (CERC)

A key regulator of power sector in India
Statutory body functioning with quasi-judicial status under sec – 76 of the Electricity Act 2003
Initially constituted on 24 July 1998 under the Ministry of Power’s Electricity Regulatory Commissions Act, 1998 for rationalization of electricity tariffs, transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, and for matters connected Electricity Tariff regulation.

Objectives:
The Commission intends to promote competition, efficiency and economy in bulk power markets, improve the quality of supply, promote investments and advise government on the removal of institutional barriers to bridge the demand supply gap and thus foster the interests of consumers. In pursuit of these objectives the Commission aims to –

Improve the operations and management of the regional transmission systems through Indian Electricity Grid Code (IEGC), Availability Based Tariff (ABT), etc.
Formulate an efficient tariff setting mechanism, which ensures speedy and time bound disposal of tariff petitions, promotes competition, economy and efficiency in the pricing of bulk power and transmission services and ensures least cost investments.
Facilitate open access in inter-state transmission
Facilitate inter-state trading
Promote development of power market
Improve access to information for all stakeholders.
Facilitate technological and institutional changes required for the development of competitive markets in bulk power and transmission services.
Advise on the removal of barriers to entry and exit for capital and management, within the limits of environmental, safety and security concerns and the existing legislative requirements, as the first step to the creation of competitive markets.

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