Directing regulation!

Recent issue of a direction by the Ministry of Power to the Central Electricity Regulatory Commission does not augur well for either regulatory autonomy or for the longer-term development of sector

In a letter dated May 8, the Ministry of Power gave an unusual statutory direction to the Central Electricity Regulatory Commission (CERC). The letter says that “the CERC is required to consult all stakeholders before framing regulation and the Government are the most important stakeholder. In view of the above, (the) CERC must consult the Ministry of Power in detail at the stage of formulating regulations. This will ensure that the Regulations are consistent with the Rules framed by Government and the Government’s Reforms Agenda; and will also obviate the necessity of any subsequent policy direction (by) the Government under