Govt may set up common regulator for energy sector
The government is considering setting up a common energy regulator for electricity, coal, oil and gas sectors.
By Rajeev Jayaswal & Subhash Narayan, TNN |
NEW DELHI: The government is considering setting up a common energy regulator for electricity, coal, oil and gas sectors. The process may, however, be started by setting up a ‘hydrocarbon regulator’ for coal, oil and gas sectors.
Eventually, an all encompassing super regulator for the energy sector is proposed which would include electricity in its power domain. It is understood that the proposal was discussed recently at the top level of governance, where the need to bring coal sector into the regulatory network was emphasised, sources in the government said.
While oil sector already has directorate general of hydrocarbon (DGH) to watch exploration & production (E&P) of oil assets, soon a regulator for the gas sector will be in place. The coal sector is, however, unregulated. Even the expert committee on Integrated Energy Policy headed by Kirit Parikh recommended bringing coal sector under regulation to curb powers of government committees for determining coal prices for different user industries.
A broad consensus on super regulator was emerged at a recent meeting of the Prime Minister’s Energy Coordination Committee, sources said. In fact, the government is concerned over proliferation of regulatory bodies and considering three multi-sectoral regulators in infrastructure sector; one each for energy, communications (including telecom) and transport.
Besides national regulators, the government is also considering taking the states on board for having a single regulatory commission for all infrastructure sectors. This would enable easier coordination between central and state level regulators.
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It is proposed that regulations should be light handed and tariff setting could be left to competitive markets in segments other than where elements of monopoly exist. In case of a monopolistic situation, the sector should have close regulation.There has been a proposal to set up a separate department to monitor regulatory reforms and governance. As per the proposal, the department will be part of the ministry of personnel and administrative reforms.
It is understood that through the new regulatory changes, government also intends to ensure uniformity in regulations, which is at present divergent with each regulator enjoying different sets of power.
rajeev.jayaswal@timesgroup.com, subash.narayan@timesgroup.com
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