This paper looks at the regulatory component of India's electricity reforms from four perspectives. Concerns about governance standards for the sector that set the context ofreforms are noted first, and the re-allocation of powers that reforms brought about is discussed with particular reference to federal issues and the centre–state interface. The paper then evaluates the impact of regulatory reforms on selected performance parametersof the sector. The finding here is that potential gains largely remain to be realised. Next,the new regulatory architecture is compared with the patterns of reforms undertakenin a group of developed countries to draw the conclusion that the design is sound and appropriate for the country's needs. The reasons for the sub-optimal impact are then taken up: these broadly pertain to large capacity shortcomings and ownership patterns that remain much as before the reforms. The paper concludes by noting a few measures that could help to enhance regulatory effectiveness.
3iNetwork (2004), India Infrastructure Report 2004. New Delhi: Oxford University Press .
2.
Baijal, P. (1999), ‘ Restructuring the Power Sector in India: A Base Paper ’, Economic and Political Weekly, 34(27): 2795–803 .
3.
Garg, A. , M. Kabra and R. Kacker (2003), Regulatory Reforms in India: Effectiveness, Efficiency and Impacts. New Delhi: The Energy and Resources Institute and United Nations Development Programme .
4.
Heimler, Alberto (1998), ‘Regulation, Competition and Privatisation’, Twelfth Plenary Session of the OECD Advisory Group on Privatisation (AGP), Helsinki , 17–18 September.
5.
Hunt, Sally and Graham Shuttleworth (1999), Competition and Choice in Electricity. UK: John Wiley and Sons Ltd.
6.
Kahn, Alfred E. (2002), ‘ The Deregulatory Tar Baby: The Precarious Balance Between Regulation and Deregulation, 1970–2000 and Henceforward ’, Journal of Regulatory Economics, 21(1): 35–56 .
7.
Laffont, Jean-Jacques (2000), ‘Institutions, Regulations and Development’, Distinguished Lecture Series 16, The Egyptian Center for Economic Studies.
8.
Nair, S.K.N. (2000), ‘Energy Infrastructures in India: Assessing Power Sector Needs’, in P. Audinet , P.R. Shukla and F. Grare (eds), India's Energy—Essays on Sustainable Development, pp. 61–83. New Delhi: Manohar and Centre de Sciences Humaines .
9.
National Council of Applied Economic Research (NCAER) (2001), The Indian Railways Report 2001: Policy Imperatives for Reinvention and Growth. New Delhi: National Council of Applied Economic Research.
10.
Newbery, David M. (1994), ‘ Competition and Regulation in the Electricity Industry ’, Paper for the OECD/World Bank Conference on Competition and Regulation in Network Infrastructure Industries, Budapest, 28 June–1 July. Centre for Cooperation with Economies in Transition.
11.
Noll, Roger (1999), ‘The Economics and Politics of the Slowdown in Regulatory Reform’, AEI-Brookings Joint Center for Regulatory Studies, Washington, D.C .
12.
Ocana, Carlos (2003), ‘ Trends in the Management of Regulation: A Comparison of Energy Regulators in Member Countries of OECD ’, International Journal of Regulation and Governance, 3(1): 13–32 .
Rao S.L (2004), Governing Power: A New Institution of Governance, the Experience with Independent Regulation of Electricity. New Delhi: The Energy and Resources Institute .
16.
Ruet, Joel (2005), Privatising Power Cuts? Ownership and Reform of State Electricity Boards in India. New Delhi: Academic Foundation .
17.
The Economist (2005), ‘The Power to Change’, 17 September, Asia-Pacific edition.
18.
Uppal, Mahesh , with S.K.N. Nair and C.S. Rao (2006), ‘India's Telecom Reform: A Chronological Account’. New Delhi: Indian Institute of Public Administration, National Council of Applied Economic Research and United Nations Development Programme .
19.
White, Lawrence J. (1999), ‘U.S. Public Policy toward Network Industries’. Washington, D.C.: AEI-Brookings Joint Center for Regulatory Studies .
20.
Andhra Pradesh Electricity Regulatory Commission (various years), Tariff Orders for Distribution Companies, accessed at www.ercap.org
21.
Appellate Tribunal for Electricity, Order dated 29 March 2006 on Appeal No. 204 of 2005; Order dated 2 June 2006 on Appeals No. 1 to 80; Order dated 16 November 2006 on Appeals No. 81 and 4; Order dated 22 December 2006 on Petition No. 1 of 2005, all accessed at http://aptel.gov.in (in December 2006).
22.
Central Electricity Authority (June 2006), Draft National Electricity Plan, 2007–12, accessed at http://cea.nic.in
23.
Central Electricity Regulatory Commission (20 July 2006), Staff Paper on ‘Developing a Common Platform for Electricity Trading’—20 July 2006, accessed at the CERC website www.cercind.org (in December 2006).
24.
Maharashtra Electricity Regulatory Commission, Tariff order dated 20 October 2006 on Petition of Maharashtra State Electricity Distribution Company Ltd. (accessed at the MERC website: www.mercindia.org.in, November 2006).
25.
Ministry of Power, Government of India (2003), Electricity Act, available at http://powermin.nic.in
26.
Ministry of Power, Government of India (2005), National Electricity Policy, 12 February, available at http://powermin.nic.in
27.
Ministry of Power, Government of India (2006a), Tariff Policy, 6 January, available at http://powermin.nic.in
28.
Ministry of Power, Government of India (2006b), Report on Restructuring of APDRP, October, available at http://www.apdrp.com
29.
Planning Commission of India (Secretariat for Committee on Infrastructure) (2006), Consultation Paper on ‘Approach to Regulation of Infrastructure: Issues and Options’, 18 August, accessed at www.planningcommission.gov.in (October 2006).
30.
Punjab State Electricity Regulatory Commission (2006), Tariff Order for 2006–07, 10 May, accessed at the Commission website www.pserc.nic.in
31.
Uttaranchal Electricity Regulatory Commission, Various Tariff Orders, accessed at http://uerc.org
