Guidelines for ERCs
The Regulatory Commission is concerned along with the generation, transmission and distribution companies operating on commercial lines. In fixing the tariff, the concerned Regulatory Commission is mandated to:
- Encourage competition and effectiveness;
- Safeguard the interest of the consumers and at the similar time ensure recovery of the cost of electricity in a reasonable manner;
- Use of renewable source of energy and encourage generation;
- Examine the factors which would encourage efficiency and economical use of resources; and
- Ensure which the businesses of generation, transmission and distribution are conducted on commercial principles.
The Regulatory Commission after receiving petition for tariff should provide wide publicity to the petition before the tariff fixation and invite public objections to the tariff proposals, if any. If the Government needs any additional subsidy beyond that provided through the Commission to any consumer or a class of consumers, it has to pay the amount in advance to compensate the Power Company affected through the grant of subsidy. Instead, the Governments cannot make empty promises to please any category of consumers. It has to gives extra funds, in the form of subsidy to the power company, in case it wishes to be extra-generous, to in which category of consumers.