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Jurisdiction of Central Electricity Regulatory Commission

2 December, 2013

Central Electricity Regulatory Commission does not have jurisdiction to adjudicate a dispute between two licensees relating to charges for operation and maintenance of a part of inter-State transmission system which is owned by one of the licensees and operated and maintained by the other licensee for or on behalf of the former.  

The Electricity Appellate Tribunal in one of its recent order has held that the Central Commission does not have jurisdiction over the arrangement that a inter-State transmission licensee has with another licensee or any other entity for providing such services for its transmission system and the rates payable to such licensee. It was observed that relationship between POWERGRID and TNEB with respect to operation and maintenance services provided by TNEB or its successor entity is that of employer and contractor and thus cannot be a subject of regulation by the Central Commission under Section 79 of the Electricity Act, 2003. [Tamil Nadu Generation and Distribution Corporation Limited v. Central Electricity Regulatory - Appellate Tribunal for Electricity, Order dated 11-11-2013 in Appeal Nos. 51 and 79 of 2013].
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