Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY MANGEMENT & STAFF FUNCTIONS : CENTRAL ELECTRICITY REGULATORY COMMISSION OF INDIA K. VENUGOPAL

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY Constituted under the Electricity Regulatory Commissions Act, The Commission consists of :-  A Chairperson and three other Members;  The Chairman of the Central Electricity Authority shall be the Member (Ex-officio) Chairperson and other Members are appointed by the Central Government. CONSTITUTION OF CERC

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY The Selection Committee for the appointment of Chairman & Members of CERC consists of:- - Member of the Planning Commission in-charge of the energy sector - Chairperson - Secretary, Department of Legal Affairs - Member - Chairman, Public Enterprises Selection Board - Member - Chairman or Managing Director of any Public Financial Institution - Member - Director or Head of any Research, Technical or Management Institution- Member - Secretary-in-charge of the Ministry of Power- Member/ Convenor APPOINTMENT OF CHAIRMAN & MEMBERS, CERC

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY Age Limits  Chairperson-Upto 65 years  Members-Upto 62 years Salary, allowances and other conditions of service shall be prescribed by the Government. Chairperson and every Member shall make and subscribe to an oath of office & secrecy. The Central Commission may appoint a Secretary to exercise and perform under the control of the Chairperson such powers and duties as specified by the regulations made by the Central Commission. TERMS OF OFFICE & OTHER CONDITIONS

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY The Central Commission with the approval of the Central Government determine the number, nature and categories of other officers and employees The salaries and allowances payable to and other conditions of service of the Secretary, officers and other employees shall be determined with the approval of the Central Government by the regulations. The sanctioned strength of the Commission is as follows:- TERMS OF OFFICE & OTHER CONDITIONS..contd.

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY SANCTIONED STRENGTH OF THE CERC Name of the PostSanctioned Strength 1.Secretary1 2.Chief4 3.Joint Chief2 4.Deputy Chief8 5.Asistant Chief8 6.Bench Officer2 7.Assistant Sectretary(Pers &Adm)1 8.Pay & Accounts Officer1 9.Principal Private Secretary4 10. Private Secretary5 11. Assistant5

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY SANCTIONED STRENGTH OF THE CERC..contd. Name of the PostSanctioned Strength 12. Personal Assistant7 13. Stenographer4 14.Receptionist-cum- telephone operator1 15.Senior Peon/Daftry2 16.Peon4 17.Driver Total

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY ORGANISATION CHART OF CERC

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY The Central Commission may also appoint Consultants as required. Any vacancy in the Commission shall not invalidate proceedings of the Commission. The expenses of the Commission, including all salaries and allowances, shall be charged upon the Consolidated Fund of India. The Central Commission shall have the powers as are vested in a Civil Court under the Code of Civil Procedure, TERMS OF OFFICE & OTHER CONDITIONS..contd.

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY Section-13 : The Central Commission shall discharge all or any of the following functions, namely:- (a) to regulate the tariff of generating companies owned or controlled by the Central Government; (b) to regulate the tariff of generating companies, other than those owned or controlled by the Central Government specified in clause (a), if such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State; (c) to regulate the inter-State transmission of energy including tariff of the transmission utilities; (d) to promote competition, efficiency and economy in the activities of the electricity industry; THE POWERS & FUNCTIONS OF CERC

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY (e) to aid and advise the Central Government in the formulation of tariff policy which shall be - (i)fair to the consumers; and (ii) facilitate mobilisation of adequate resources for the power sector; (f)to associate with the environmental regulatory agencies to develop appropriate policies and procedures for environmental regulation of the power sector; (g) to frame guidelines in matters relating to electricity tariff; (h)to arbitrate or adjudicate upon disputes involving generating companies or transmission utilities in regard to matters connected with clauses (a) to (c) above; (i) to aid and advise the Central Government on any other matter referred to the Central Commission by that Government. THE POWERS & FUNCTIONS OF CERC....contd.

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY Section-28 : The Central Commission shall determine by regulations, the terms and conditions for fixation of tariff under clauses (a), (b) and (c) of section 13, and in doing so, shall be guided by the following namely:- (a)the generating companies and transmission entities shall adopt such principles in order that they may earn an adequate return and at the same time that they do not exploit their dominant position in the generation, sale of electricity or in the inter-state transmission of electricity; (b)the factors which would encourage efficiency, economical use of resources, good performance, optimum investments and other matters which the Central Commission considers appropriate; (c) national power plans formulated by the Central Government; and (d) such financial principles and their applications contained in Schedule VI to the Electricity(Supply) Act, 1948 as the Commission considers appropriate. DETERMINATION OF TARIFF BY CENTRAL COMMISSION

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY Section-31 : The Central Commission shall prepare, in such form and at such time in each financial year as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Central Commission and forward the same to the Central Government. Section-32 : (1) The Central Commission shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India. Section-35 : (1) The Central Commission shall prepare once every year, in such form and at such time as may be prescribed, an annual report giving a summary of its activities during the previous year and copies of the report shall be forwarded to the Central Government. (2) A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament. ACCOUNTS, AUDIT AND REPORTS OF CENTRAL COMMISSION

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY Section-37 : The Commission shall ensure transparency while exercising their powers and discharging their functions. Section-38 : (1) In the discharge of its functions, the Central Commission shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing. Section-40 : The Chairperson, Members, officers and other employees of the Commissions shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of Section 21 of the Indian Penal Code. Section-55 : (1) The Central Commission may, by notification in the Official Gazette, make regulations consistent with this Act and the rules generally to carry out the purposes of this Act. MISCELLANEOUS PROVISIONS OF CENTRAL COMMISSION

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY Section-56 : Every rule made by the Central Government and every regulation made by the Central Commission under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. MISCELLANEOUS PROVISIONS OF CENTRAL COMMISSION…. Contd..

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY Section-13 : (1) The Secretary shall be the Principal Officer of the Commission and shall exercise his powers and perform his duties under the control of the Chairperson. (2) The Commission in discharge of its functions under the Act, may take such assistance from the Secretary as it may deem fit and the Secretary shall be bound to assist the Commission. (3)In particular and without prejudice to the generality of the above provisions, the Secretary shall have the following powers and perform the following duties, viz: (a)he shall have custody of the records and the seal of the Commission; (b)he shall receive or cause to receive all petitions, applications or reference pertaining to the Commission; CERC (CONDUCT OF BUSINESS) REGULATIONS, 1999

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY (c)he shall prepare or caused to be prepared briefs and summaries of all pleadings presented by various parties in each case before the Commission in the discharge of its function in this regard; (d)he shall assist the Commission in the proceedings relating to the powers exercisable by the Commission; (e)he shall authenticate the orders passed by the Commission; (f)he shall ensure compliance of the orders passed by the Commission; and (g)he shall have the right to collect from the Central Government or other offices, companies and firms or any other party as may be directed by the Commission, such information as may be considered useful for the purpose of efficient discharge of the functions of the Commission under the Act and place the said information before the Commission. CERC (Conduct of Business) Regulations, 1999 … contd...

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY Section-14 : The Commission may delegate to its officers such functions including functions that may be required by these regulations to be exercised by the Secretary on terms and conditions the Commission may specify for the purpose. Section-15 : The Secretary may, with the approval of the Commission, delegate to any Officer of the Commission any function required by these Regulations or otherwise, to be exercised by the Secretary. Section-21 : The Quorum for the proceedings before the Commission shall be three. CERC (Conduct of Business) Regulations, 1999 … contd...

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY CERC (Conduct of Business) Regulations, 1999 CERC (Miscellaneous Provisions ) Order, 1999 CERC (Miscellaneous Provisions Order, 1999 (Amendment) Reg. Jurisdiction to regulate the inter-state transmission of energy CERC (Appointment of Consultants) Regulations, 1999 Central Advisory Committee CERC(Conduct of Business) (First Amendment) Regulations, 2000 CERC (Filing of Annual Report by Thermal Generating Companies Order, 2000 CERC(Filing of annual Report by Transmission Utility) Order 1999 NOTIFICATIONS ISSUED BY CERC

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY CERC (Medical Facilities) Regulations, 2000 CERC (Terms & Conditions of Tariff) Regulations, 2001 Notification regarding revised terms and conditions for determination of tariff CERC(Procedure, T&C for grant of Trans. License and other related matters) CERC(Terms & Conditions of Tariff)(First Amendment) Regulations, 2001 Reg. extension of billing of charges upto Reg. extension of billing of charges upto NOTIFICATIONS ISSUED BY CERC….contd...

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY 1.TARIFF 2.ADDITIONAL CAPITALISATION AND FOREIGN EXCHANGE RATE VARIATION 3.INCENTIVES/DISINCENTIVES 4.REGULATION OF POWER SUPPLY (GENERIC) 5.SUO-MOTO CASES TYPES OF PETITIONS

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY TARIFF COMPONENTS OF TARIFF 1)Fixed Charge  Interest on loan  Return on equity  Depreciation  O&M expenses  Interest on working capital  Income-tax 2)Variable Charge TYPES OF PETITIONS…. Contd….

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY SUO-MOTO CASES INDIAN ELECTRICITY GRID CODE AVAILABILITY BASED TARIFF FINANCIAL NORMS OPERATIONAL NORMS ENQUIRY INTO GRID FAILURES ANNUAL FILING FORMATS TARIFF FILING FORMATS TYPES OF PETITIONS…. Contd….

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY Receipt of Petition in the Commission (Legal Division) Scrutiny of the Petition Removal of Defects (if any) Routine Cases Hearing on Admission Admission by Circulation to the Members/Chairman Admit/Reject Nomination of Lead Officer & Fix Date of Hearing Petitioner to serve copies of Petition to Respondents Respondents to file reply (3 weeks) PROCESS CHART

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY Rejoinder by Petitioner (2 weeks) Hearing Directions for any additional clarifications Additional Hearing if required. Pass Orders (Total Process Time : 6 Months) PROCESS CHART….contd…

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY SECTION 16 OF ERC ACT Appeal Lies with the High Court (within 60 days)  Provision to relax the sixty days time exists in the Act. Second appeal to the Supreme Court is through Special Leave Petition. APPEALSAPPEALS

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY No. of Petitions received during No. of IAs received during Total Filing Fee received during Rs. 4,12,54,659/- PETITIONS IN CERC

Course 3.6 Regulatory Commissions: Management & Staff Functions, Bangladesh, Mar 31- Apr 4, 2002 SOUTH ASIA REGIONAL INITIATIVE/ENERGY THANK YOU