Discuss the role of CERC in tariff setting.
The Commission intends to promote competition, efficiency and economy in bulk power markets, improve the quality of supply, promote investments and advise government on the removal of institutional barriers to bridge the demand supply gap and thus foster the interests of consumers. In pursuit of these objectives the Commission aims to –
Improve the operations and management of the regional transmission systems through Indian Electricity Grid Code (IEGC), Availability Based Tariff (ABT), etc.
Formulate an efficient tariff setting mechanism, which ensures speedy and time bound disposal of tariff petitions, promotes competition, economy and efficiency in the pricing of bulk power and transmission services and ensures least cost investments.
Facilitate open access in inter-state transmission
Facilitate inter-state trading
Promote development of power market
Improve access to information for all stakeholders.
Facilitate technological and institutional changes required for the development of competitive markets in bulk power and transmission services.
Advise on the removal of barriers to entry and exit for capital and management, within the limits of environmental, safety and security concerns and the existing legislative requirements, as the first step to the creation of competitive markets.
Advisory Functions
Formulation of National Electricity Policy and Tariff Policy.
Promotion of competition, efficiency, and economy in
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