GS-III: Economy, Environment, S&T
Power Sector Regulation: Electricity Act, Discoms, Tariffs and PPAs
Not met yet — counts as met once you answer a question on it.
Discom financial distress, not generation shortfall, is the structural fault-line in India's power sector. The Electricity Act, 2003 built a three-tier architecture: CERC for interstate transmission and wholesale tariffs, SERCs for retail tariffs and distribution licensing, and APTEL for dispute resolution. Discoms accumulate AT&C losses and debt; UDAY and the revamped RDSS address this partly. Tariff-setting under the National Tariff Policy, PPAs between Discoms and generators, cross-subsidy surcharges, and open-access rights together determine sector viability and the bankability of renewable energy projects.