GS PAPER II: Statutory, regulatory and various quasi-judicial bodies.

Context: Average spot power price rose by 65% to ₹4.06 per unit in March compared to the year earlier month at the Indian Energy Exchange (IEX) mainly due to increase in demand on account of rise in temperature and revival of economic activities.

• The REC (renewable energy certificate) trading session which was scheduled on 31 March’21 did not take place due to the stay order from the APTEL (Appellate Tribunal For Electricity) in response to the petitions filed by a few Renewable Energy Associations against the CERC (Central Electricity Regulatory Commission) regarding revision in the floor and forbearance prices of REC.

About CERC:

• Central Electricity Regulatory Commission (CERC), a key regulator of power sector in India, is a statutory body functioning with quasi-judicial status under sec – 76 of the Electricity Act 2003.
• CERC was 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.
• CERC was instituted primarily to regulate the tariff of Power Generating companies owned or controlled by the government of India, and any other generating company which has a composite scheme for power generation and interstate transmission of energy, including tariffs of generating companies.
• The Central government of India moved forward to enact the Electricity Regulatory Commission Act of 1998, which mandated the creation of the Central Electricity Regulation Commission with the charge of setting the tariff of centrally owned or controlled generation companies.
• Apart from CERC, the act also introduced a provision for the states to create the State Electricity Regulation Commission (SERC) along with the power to set the tariffs without having to enact separate state laws.

https://www.thehindu.com/business/Industry/average-spot-power-price-at-iex-jumps-65/article34256092.ece#:~:text=Average%20spot%20power%20price%20rose,and%20revival%20of%20economic%20activities.

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