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Central Electricity Regulatory Commission (CERC)

19th February, 2024 Economy

Central Electricity Regulatory Commission (CERC)

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  • Power Grid Corporation (POWERGRID) anticipates "no impact" from proposed changes in Operation & Maintenance (O&M) charges norms by the Central Electricity Regulatory Commission (CERC), according to a senior company official.

Central Electricity Regulatory Commission (CERC)

  • The Central Electricity Regulatory Commission (CERC) is a statutory body responsible for regulating the tariff of power generated or sold in India.
  • Establishment: CERC was established by the Government of India under the provisions of the Electricity Regulatory Commissions Act, 1998.
  • Jurisdiction: CERC regulates tariffs for power generated or sold by generating companies, interstate transmission of electricity, and the operation of the national power grid.
  • Functions: CERC regulates tariffs for the sale of electricity, including fixing the tariff for generating companies and transmission licensees, granting licenses for inter-state transmission of electricity, adjudicating upon disputes between licensees and generating companies, and regulating the operations of the power systems and developing a market for power.
  • Composition: The commission consists of a chairperson and four other members appointed by the central government.
  • Tariff Regulations: CERC issues tariff regulations periodically, which outline the methodology for determining tariffs for various categories of entities in the power sector.
  • Regulatory Oversight: CERC ensures compliance with regulations, resolves disputes, and promotes efficiency and competition in the power sector.
  • Impact: CERC's decisions and regulations have a significant impact on the cost of electricity for consumers, as they directly influence the tariffs set by power companies.
  • Recent Developments: CERC has been involved in various regulatory issues, including setting tariffs for renewable energy projects, ensuring grid stability, and promoting sustainable development in the power sector.

Overall, CERC plays a crucial role in ensuring the efficient and sustainable development of the power sector in India.


Q. Which statutory body in India is responsible for regulating the tariff of power generated or sold, interstate transmission of electricity, and the operation of the national power grid?

A) Central Electricity Authority (CEA)

B) Central Electricity Regulatory Commission (CERC)

C) Power System Operation Corporation Limited (POSOCO)

D) Ministry of Power (MoP)

Correct Answer: B) Central Electricity Regulatory Commission (CERC)