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

K P Krishnan

Illustration: Binay Sinha

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 Section l07.”
This points to a conflict. The conflict is rooted in the deeper real-world complexities of the Ministry of Power and the CERC. The experiential wisdom in the field of Indian regulation is that regulators in India have displayed many kinds of bad behaviour, and governments also show improper conduct towards the
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Also Read

CERC is finding its room for decision-making limited by govt orders

Waiting for private sector to take the lead on capex: CEA Nageswaran

Distribution helps Tata Power log over two-fold rise in Q3 net to Rs 945 cr

Power stocks surge as govt orders coal-based plants to run at full capacity

Economy will grow over 6.8% in FY23, says CEA V Anantha Nageswaran

Sebi at age 31. Or is it 35?

Bank runs and resolutions

In defence of financial globalisation

Guru of globalisation

Inflation and agency accountability

Dealing with the debt stock

The UK a tax haven?

Regulators will drive the ESG agenda

The unsung hero

Need to go beyond GDP

First Published: May 25 2023 | 10:05 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to