CERC announces regulations for implementation of Interstate Transmission System in the country

The Central Electricity Regulatory Commission (CERC) recently announced a regulation called the Central Electricity Regulatory Commission (Planning, Coordination and Development of Economic and Efficient Inter-State Transmission System by Central Transmission Utility and other related matters) Regulations, 2018 which came into effect from July 2018. The objectives of the regulation are to:

(1) Lay down the broad principles, procedures, and processes to be followed for planning and development of an efficient, coordinated, reliable and economical system of an inter-State transmission system (ISTS) for smooth flow of electricity from generating stations to the load centers;

(2) Ensure wider participation of stakeholders in the planning process and specify the procedures for stakeholders consultation and participation;

(3) Specify procedures to bring about transparency in the planning process; and

(4) Demarcate the roles and responsibilities of various organizations in line with the Act for meeting the above objectives;

The regulation states responsibilities of the concerned entities like the Central Transmission Utility, Transmission Licensees, Regional Power Committee (RPC), RLDCs, NLDCs & SLDCs respectively and their roles in implementing the above-stated objectives of the regulations. This regulation is in accordance with other CERC regulations like Central Electricity Regulatory Commission (Procedure, Terms, and Conditions for grant of Transmission License and other related matters Regulations), 2009; Central Electricity Regulatory Commission (Grant of Regulatory Approval for execution of Inter-State Transmission Scheme to Central Transmission Utility Regulations), 2010; and the Tariff Regulations issued by the Central Commission from time to time under section 61 of the Act.  

Further, the regulation has mentioned the process for the planning of the inter-state transmission and lastly, there are details provided for the process to be followed by CTUs and transmission licensee for application filing in order to start inter-state transmission.

The regulation has come well in time as there have been recent solar PV auctions with Interstate Transmission System connected solar projects. The regulations have also considered the augmentation of renewable capacity addition and Renewable Purchase Obligation with respect to each state in the country.

CERC (Terms and Conditions for Dealing in Energy Savings Certificates) Regulations, 2016

CERC recently came up with its final regulation on Terms and Conditions for dealing in Energy Saving Certificates. This regulation will govern and define the framework for ESCerts trading on power exchanges. A brief analysis is given below:

Final regulation

The final Regulations have defined responsibilities of the Registry and Administrator. The responsibilities defined for POSOCO and CERC are same as the draft regulation


The functions of the Registry shall be

  • Registration of Eligible Entity.
  • Maintaining records of ESCerts viz., issuance, dealing, etc.
  • Dissemination of information in coordination with the Bureau.
  • Assistance in development of IT Platform for maintaining database of ESCerts.
  • Signing of Non Disclosure Agreement with the Administrator.


The Bureau of Energy Efficiency shall act as the Administrator and shall define detailed procedure for the following

  • Interface activities between Power Exchanges and Registry, Administrator and Registry and Registry and Designated Consumer
  • Registration of eligible entities
  • Dealing, transfer and other residual matters.


Dealing ESCerts:

  • The ESCerts issued will be placed for dealing in any of the Power Exchanges by the ESCerts holder as per the PAT rules and these regulations.
  •  The frequency of transaction of ESCerts, through Power Exchanges, shall be on monthly basis or in such periodicity as per the procedure approved by the Commission.
  • The Registry shall cross-check the cumulative sale bids placed on Power Exchanges with availability of ESCerts in respective Registry accounts and in case of breach such eligible entities will be treated as defaulter.
  • Eligible entities with more than three cases of default in a cycle shall be barred from transaction of ESCerts for next six months, notwithstanding any penalty due to be imposed.
  • The denomination of one ESCert shall be equal to energy consumed in terms of one metric Ton of Oil Equivalent (mtoe).
  •  The market price of ESCerts shall be as discovered through the process of bidding at the respective Power Exchange.


The final regulation can be accessed here.

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