MoP Launches Regulatory Compliance Division to Monitor Discoms

The Ministry of Power (MoP) has set up a regulatory compliance division to monitor the various regulatory parameters and their compliances by the DISCOMS (distribution companies) as well as state commissions.

The information was revealed in a recent interaction between Union Minister of Power and New & Renewable Energy RK Singh and electricity regulators. The forum of regulators resolved to prepare norms on various regulatory parameters and issues, which would be adopted by the state commissions. This would help the state commissions in adopting the best practices for faster implementation of reform and regulatory policies, said an official statement.

Regulatory issues like financial viability of the distribution companies, payment of dues, reduction in AT&C losses, roll out of smart metering in prepayment mode, timely issuance of tariff orders, timely disposal of the petitions, promotional tariff for the EV charging stations etc. were discussed.

The forum of regulators had recently undertaken a study to analyse the impact of various factors on the retail tariff of electricity and to develop measures to address them. The Ministry of Power has already acted on most of the recommendations pertaining to the central government and has requested that the state commission should quickly act upon the recommendation so that the retail tariff for the consumers can be reduced, said the statement.

In the course of the meeting, it was informed that the Ministry of Power is working on Resource Adequacy Guidelines and Guidelines for Procurement of Power in line with load fluctuation requirement, contract term, energy mix, and renewable obligations etc. Both are expected to be released in the next two to three months.

Issues related to electric vehicles were also discussed. Technical as well as commercial issues would be resolved by the state commissions so that EVs can be promoted, said MoP. Emphasis was made on the determination of cost reflective tariff and the setting up of adequate number of the consumer grievance redressal forums in consumer representatives, added the ministry.