The Electricity Act, 2003, needs to be amended to meet the challenges arising out of the present economic scenario and the changing needs of the power sector, Power Minister Veerappa Moily said here on Tuesday.
Mr. Moily said the Power Ministry had convened a meeting of State electricity regulatory commissions on Wednesday to discuss the proposed amendment to the Act and give regulators more autonomy in tackling issues that were now impacting economic growth. A task force had already been appointed to look into the matter, he added.
“If you want 10 per cent growth, you need 9 per cent growth in the power sector and that is why we need a strong and enlightened regulator. This is the kind of message we would like to give to the regulators, Mr. Moily said on the sidelines of a function here.
Asked whether the Central Electricity Regulatory Commission (CERC) would perform the dual function of a coal regulator till the time the latter is finalised, Mr. Moily said it was a policy decision yet to be taken. Attorney General of India Goolam Vahanvati was understood to have felt that the CERC could revise electricity tariffs of power projects by making certain changes in the power purchase agreements (PPAs). “I don't know whether there is any report from the AG, there is sanctity for signing of the PPA; it cannot be meddled with that easily. But whether there is a need it needs to be examined on a case-to-case basis under exceptional circumstances and not on a routine basis,’’ he added. The Power Ministry has also called for a meeting of power generation companies on August 31.
