OVERVIEW OF THE REGULATORY
STRUCTURE IN THE ELECTRICITY
SECTOR IN WEST BENGAL
Mr. C.R.Bhowmik,
Adviser
West Bengal Electricity Regulatory Commission
1
BACKGROUND
•
After independence, enforcement of The Electricity (Supply) Act, 1948 led to the
creation of State Electricity Boards (SEBs) who were responsibility for planning
and implementing the power development programmes at the State level.
•
The Central Electricity Authority was also constituted under the Act to deal with
planning issues related to generation, transmission and distribution of electricity at
the national level.
•
In addition, as per the Electricity Supply Act 1910, private licensees were allowed
to distribute and/or generate electricity in specific areas designated by the
concerned State Government/ SEB.
•
Till 1991, power generation, transmission and distribution functions were mainly
discharged by SEBs enjoying monopoly power in the respective areas.
2
BACKGROUND
…..(contd.)
•
The key thrust of the governments (States and Central), during this period, was to
supply low cost electricity to the consumers and ensure universal access and connect
all villages to the grid.
•
But, it became difficult for the Governments to provide the necessary infrastructure
for supplying electricity at low cost. As a result, most of the SEBs ran into
irrecoverable loss and huge deficits.
•
The commercial losses with subsidy for all SEB increased from Rs. 4,117 crore in 1991
to Rs. 28,445 crore in 2001 (Economic Survey, 2000-01, Govt of India).
•
Major policy changes were made by the Government of India to trigger on the reform
process in the electricity sector.
3
BACKGROUND
•
…..(contd.)
The Electricity Act 2003 (The Act) replaced all earlier Acts relating to power sector.
One of the main objectives of the Act was also to promote efficient and
environmentally benign policies in the electricity sector. The Act envisaged for
promoting competition in the sector with the following important provisions – Unbundling SEBs into Generation, transmission and distribution corporations
– De-licensing the generation business
– Creation of Independent (Electricity) Regulatory Commissions
•
Provide Open Access to the transmission and distribution network to promote
competition
– Thrust on Non-Conventional (RE) sources and promotion of energy conservation through tariff
and other mechanisms
– Rationalization of tariff structure and progressively reduction of cross-subsidies
•
In addition the Electricity Act, 2003 also emphasized on developing a National
Electricity Policy and a National Tariff Policy to provide the SERCs the roadmap for
chalking out appropriate regulations.
4
The Electricity Act, 2003 and Functions of the STATE COMMINNSIONS
•
Major functions of the State Commission (WBERC) - Section 86 to frame Regulations
pertaining to
– Determine Electricity Tariff
– Regulate Electricity Purchase and Sale
– Promote cogeneration and generation of electricity from renewable sources by providing
suitable measures for connectivity with the grid
– Specify or enforce standards with respect to quality, continuity and reliability of service by
licensees
•
The State Commission shall ensure transparency while exercising its powers and discharging its
functions
•
Formation of a State Advisory Committee under Section 87 to advise the commission on
– Major questions on Policy
– Matters relating to quality, continuity and extent of service provided by the licensees
– Compliance by licensees with the conditions and requirements of their licensee
– Protection of consumer interest
– Electricity supply and overall standards of performance by utilities
5
ELECTRICITY REGULATORY
COMMISSION
•
Framing regulations
•
Determination of tariff
•
Conduct of Business by the Licensee
•
Quality of Service
ELECTRICITY
DISTRIBUTION
LICENSEE
ELECTRICITY
CONSUMERS
ELECTRICITY BILL against USAGE
•
Components of Electricity Bill
•
Grievance Redressal
•
Seek consumer participation in
framing regulations and Tariff
6
Notification No. &
Date
9/WBERC dated
08.08.2003
22/WBERC dated
28.09.2005
23/WBERC dated
18.10.2005
27//WBERC dated
17.01.2006
30/WBERC dated
20.07.2006
33/WBERC dated
05.03.2007
35/WBERC dated
12.04.2007
42/WBERC dated
22.05.2009
45/WBERC dated
22.05.2009
46/WBERC dated
31.05.2010
47/WBERC dated
10.08.2010
48/WBERC dated
25.04.2011
Some selected Regulation
This is a Notification constituting West Bengal State Advisory Committee in terms of section
87(1) of the Electricity Act, 2003.
West Bengal Electricity Regulatory Commission (Recovery of Expenditure for Providing New
Connections) Regulation 2005.
West Bengal Electricity Regulatory Commission (Miscellaneous Provisions) Regulation, 2005.
West Bengal Electricity Regulatory Commission (Guidelines for Establishment of Forum for
Redressal of Grievances of Consumers and Time and Manner of Dealing with such Grievances by
the Ombudsman) Regulations, 2006.
West Bengal Electricity Regulatory Commission (Phasing For Open Access in Distribution / Sale of
Electricity) Regulations, 2006.
West Bengal Electricity Regulatory Commission (Conduct of Business) Regulations, 2007.
West Bengal Electricity Regulatory Commission (Open Access) Regulations, 2007.
West Bengal Electricity Regulatory Commission (Balancing and Settlement Code) (Amendment)
Regulations, 2009.
West Bengal Electricity Regulatory Commission (Open Access) (Amendment) Regulations, 2009.
West Bengal Electricity Regulatory Commission (Standards of Performance of Licensees Relating
to Consumer Services) Regulations, 2010.
West Bengal Electricity Regulatory Commission (Cogeneration & Generation of Electricity from
Renewable Sources of Energy) Regulations, 2010.
West Bengal Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations,7
2011.
Regulation 33: Conduct of Business Regulation, 2007
Total three chapters
• Chapter-I (General):
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Short title, commencement and interpretation.
Definitions.
Commission’s office, office hour and sittings.
Quorum for meeting.
Language of the Commission.
Secretary of the commission
Advisory Committee.
Consultant.
Assistance of Experts.
Investigation
Consumer Association
8
Regulation 33: Conduct of Business Regulation, 2007
Chapter –II: General Rules concerning the proceedings before the commission
•
The proceedings before the Commission may relate to any of the following matters:1. Determination of tariff
2. Issue of license/ amendments/ cancellation
3. Adjudication or resolution of dispute.
4. Open access.
5. Regulation of purchase and procurement process of Electricity.
6. Investigation.
7. Complaint against contravention of Act or Rules or Regulations or Directions or Order of the
commission.
8. Any other matter provided under the Act.
•
Quorum
•
The Commission may initiate any proceedings suo motu or on a petition filed by any affected
person who can file such petition in terms of the provisions of these Regulations and the Act.
•
Petition and Pleading before the Commission : - All Petitions to be filed before the Commission
shall be type written, cyclostyled or printed neatly and legibly on white paper in six copies and
every page shall be consecutively numbered.
9
Regulation 33: Conduct of Business Regulation, 2007
Chapter –III: Miscellaneous
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Appeal under Section 127 of the Act - Appeal to be filed before the Appellate
Authority by a person aggrieved by the final order of the Commission in Form – 5.
Interim order.
Review of the decisions, directions and orders.
Continuance of proceedings after death etc.
Publication of the petitions.
Confidentiality.
Specified fees.
Requisite fees shall be paid in terms of the fees regulations.
General order :- The Commission may pass any general order and may direct the
same for publication in any news paper for protecting the interest of the consumers,
the licensees and the generating companies under the Commission in the state of
West Bengal.
Saving of inherent power of the Commission.
10
Regulation 47: Cogeneration & Generation of Electricity from
Renewable Sources of Energy
•
•
Issuance of Renewable Purchase Obligation (RPO)
Fixing the Price caps for electricity from different sources along with the
time till such prices shall remain fixed
Source
Biomass (A maximum fuel mix of 15%
conventional fossil fuel shall be allowed on
yearly basis).
Wind
Small Hydro
Grid Connected Solar PV power plants (100
Kw upto 2 Mw or more )
Price/Kwh
Rs 4.36
10 years
Rs 4.87
Rs 3.64
Rs 16.13
10 years
5 years
25 years
Roof top Solar PV sources (2 Kw upto 100 kw)
Municipal Solid Waste
Bio-gas
Period of validity of the Price
Rs 4.50
Rs 5
10 years
5 years
11
Regulation 47: Cogeneration & Generation of Electricity from
Renewable Sources of Energy
•
Roof top Solar PV sources (2 Kw upto 100 kw) can be installed for injecting into the
distribution system of a licensee only by such institutional consumer(s) like
⁻ Government hospitals and health centres,
⁻ Hospitals and health centres owned and run by any private charitable
organization,
⁻ Government and Government aided schools and academic institutions,
⁻ Government offices and organizations,
⁻ Any housing complex already promoted for this purpose by Government or
any Government agency for the development of renewable sources,
•
Such injection from roof-top solar PV sources of the above mentioned consumer(s)
shall not be more than 90% of the consumption from the licensee’s supply by the
above mentioned consumer(s) in a financial year.
•
Such injection from roof-top solar PV sources of the above mentioned consumer(s)
shall be settled on net energy basis at the end of each financial year.
12
Regulation 48: Terms and Condition of Tariff and Incentives for
Promoting Demand Side Management
•
Time-of-the-Day (TOD)
• Between 06-00 hours and 17-00 hours - Normal period - Normal Tariff;
• Between 17-00 hours and 23-00 hours – Peak period – Higher Tariff;
• Between 23-00 hours of the same day and 06-00 hours of the following day shall
be treated as the off-peak period – Lower Tariff.
•
The same tariff scheme could be differentiated based on Period of Year (Summer,
monsoon and Winter) applicable only for generating companies, one licensee selling
power to another licensee, or any specified class of consumer. If due to such tariff
differentiation, any variation in the licensee’s revenue earning exceeds its aggregate
revenue requirement, such excess revenue earning shall be treated as an incentive to
the licensee.
•
Power factor Rebate / Surcharge
•
Load Factor Rebate / Surcharge
13
Scope for Consumer Participation
1. Tariff Determination Process
– Step-I: Generators and Licensees submit tariff petition indicating total
Aggregate Revenue Requirement (ARR) of the control period as per Tariff
Regulations with all necessary supporting documents in the office of the
Commission.
– Step-II: Gist of the tariff petition with the approval of the Commission then
published by the Generators and Licensees at least in three news paper
(Bengali,English,Hindi) inviting comments/suggestion within some
specified days and time.
– Step-III: Comments/suggestions/objections received within due date are
considered before tariff determination by the commission.
– They are mentioned in brief with comments of the Commission in the tariff
order of the Commission. Tariff order is issued within 120 days from receipt
of the petition following detailed procedure indicated in the Tariff
Rugulations.
14
Scope for Consumer Participation
2. Framing Regulations
– SERCs frame regulations based on notifications/guidelines/regulations
framed by CERC.
– The draft regulations are uploaded at the website of the SERC
– Comments are sought from the consumers/consumer groups by publishing
relevant information in the local dailies (English, Hindi and Bengali)
– Comments received are then considered while finalising the Regulation
15
THANK YOU
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