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Role of regulatory mechanism of electricity sector in India

Student name: Mr Kumar Sambhav Chauhan
Guide: Ms Nidhi Srivastava
Year of completion: 2020


In the era of urbanization, the electricity sector plays a very important role worldwide in the social as well as economical development of any country. The demand for electricity is increasing at a very high pace and every individual country is working towards attaining equilibrium and also increasing efficiency in the sector. India is the 2nd largest country in terms of populations and with increasing urbanization & industrialization the need for electricity is also ever-growing. In order to meet the demands in the country, there are various regional initiatives taken by the government to improve the present condition of electricity sector. There were various regulators being introduced at both centre as well state level to regulate electricity markets, encourage competition and private investment. However, in the Indian electricity sector there are numerous regulatory issues which includes center- state interface, Ineffective tariff fixation mechanism, dispute resolution mechanism and various other issues. This paper will be an attempt to highlight these significant federal issues around the sector. For which paper has been divided into four different parts, in the first part there will be a detailed discussion regarding the regulatory framework with respect to electricity sector. The second part will be focusing on the reforms in Indian electricity sector specially the Open Access and the Unbundling of the electricity sector. And the various challenges being faced in the implementation of these concepts. The third part will be emphasizing on the dispute resolution mechanism being adopted for the settlement of disputes in the sector and the various drawbacks and challenges being faced by the consumers in approaching the tribunal being established under the Electricity Act. In the fourth part will draw the conclusion and make few policy recommendations which can be implemented in our current regulatory framework for increasing the efficiency and effectiveness in governance of the Electricity sector of India.