The Hindu : Business : DVC under regulatory mechanism

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Friday, Oct 06, 2006
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DVC under regulatory mechanism

Special Correspondent

CERC fixes annual generation and transmission charges

NEW DELHI: The Central Electricity Regulatory Commission (CERC) on Thursday announced the generation and transmission tariff for the Damodar Valley Corporation (DVC) for 2004-09 to bring the corporation, for the first time, under the ambit of the regulatory tariff mechanism provided under the Electricity Act, 2003.

Earlier, the DVC enjoyed the autonomy to determine its own rates for bulk supply and retail distribution under Sec. 20 of the DVC Act, 1948.

The Commission has approved the DVC's annual fixed charges for generation and transmission at Rs. 1,107 crore, Rs. 1,095 crore and Rs. 1,089 crore against the claim of Rs. 1,316 crore, Rs. 1,337 crore and Rs. 1,360 crore for 2006-07, 2007-08 and 2008-09, respectively.

With the generation and transmission tariff determined by the CERC, it would now be possible for State regulators to determine the retail distribution tariff for DVC power consumers falling within their respective jurisdiction.

To facilitate a smooth transition to the regulatory regime and keeping in mind the fact that it would not be possible for the DVC to rationalise its expenses from back date, the CERC has allowed the prevailing DVC tariff up to 2005-06.

The performance norms, according to a statement issued by the regulator here, have been progressively raised for 2006-07, 2007-08 and 2008-09 after a detailed analysis and consultation with the petitioner and stakeholders.

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