State of art of the regulatory process in India

With a desire to reform the power sector, the Government of India, vide the Electricity Regulatory Commissions Act 1998 and the Electricity Act 2003, have provided for the establishment of regulatory commissions at the Central and State level. At the Central level, regulations relating to Open Access, Availability Based Tariff and Power Trading have been implemented. The State Electricity Regulatory Commissions are complementing the efforts at the state level. With rapidly changing market policies of the government, the regulatory commissions have made landmark judgments for enhancing the supply and quality of electricity at affordable rates. Still, it's a long way for establishment of standard regulatory practices. The paper analyses the evolution, constitution and obligations of the regulatory commissions and examines the tariff practices. The commission's role in providing cost-effective electricity along with providing right economical signals for generation and load has been critically analysed.