Introduction

The Electricity Regulatory Commission’s Act, 1998 (No. 14 of 1998) came into force w.e.f. 25th April, 1998, which provides for establishment of CERC and SERCs with the objectives of rationalization of tariff of electricity, to promote competition, efficiency and economy in electricity industry, to regulate the operation of power system, to sets standards, regulate the working of licensees, etc., with an over all objectives of improving the financial health of SEBs/ Electricity Utilities but keeping into consideration, the interest of the consumers. The Madhya Pradesh Vidyut Sudhar Adhiniyam, 2000 (No. 4 of 2001) has been enacted on 20.2.2001.  The State Government has notified 3rd July, 2001 as the date from which the said Adhiniyam shall have to come in force consequently the State Electricity Regulatory Commission constituted under Section 17 of the Central Act is deemed to have been constituted under State Act and thereby all the provisions of State Act shall apply to the Commission.

The Electricity Act 2003 (No. 36 of 2003) enacted by parliament has come into force w.e.f. 10th June 2003 and the Commission is now deemed to have been constituted and functioning under the provisions of Electricity Act 2003.

Salient provisions of the Electricity Act are:

(a)  Exemption from license in case of electricity generation
(b)  Open access in electricity transmission
(c)  License for electricity trade,
(d)  Arrangement of license for laying lines for private transmission
(e)  Promotion of competition by allowing presence of more than one distribution company in one area of supply and to
(f)  Ensure electricity supply to the consumers on minimum standards,
(g)  Provision for establishment of Tribunals in place of High Court  for appeal against the orders of the Commission etc

 

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