Volume 16, Number 1 Article by J L Bajaj and R Sridharan March, 2004
Regulatory Issues :
Coming to regulatory issues, J L Bajaj, Chairman, Uttar Pradesh Electricity Regulatory Commission, speaks of the unresolved issues between the regulator and the government, between the centre and the states, and the policy lacunae that are yet to be tackled by the Act.
R Sridharan, Secretary, Karnataka Electricity Regulatory Commission, speaks of the imperatives of regulating the regulator and how accountability would help in establishing the credibility and legitimacy of the regulatory authority, and also guarantee its autonomy. The top-of-the-mind recall of the regulator is as a quasi-judicial authority; however mechanisms of accountability need to take the combination of executive, legislative and judicial functions of regulators into account and there must be the necessary policy guidelines to enable regulators to juggle their various objectives and responsibilities towards the different stakeholders. In this respect, the provisions of the Karnataka Electricity Reforms Act as well as the Electricity Bill 2001 (now Act) compare unfavourably with their counterpart in the UK where the overriding priority of the regulator now is 'to protect the interests of consumers' with the other objectives being made subordinate to it. Sridharan further discourses on the questions of providing enforcement 'teeth' to the regulator while ensuring some positive standard of performance; and the need for mechanisms such as the Regulatory Impact Analysis and independent reviews of the activities and performance of regulators.
Reprint No 04105d
