Forum for energy regulators mooted
Petroleum and Natural Gas Regulatory Board Chairman proposes a forum for regulators of energy sub-sectors, reports Deepak Joshi.business Updated: Sep 14, 2007 21:48 IST
Petroleum and Natural Gas Regulatory Board Chairman L Mansingh has proposed a forum for regulators of energy sub-sectors. The move is aimed at exchanging ideas on the energy sector as recommended by the expert committee on Integrated Energy Policy.
Mansingh has been toying with the idea of forming an association of all regulators, including the financial sector, and had discussed the issue with the Chairman of the Telecom Regulatory Authority of India, Nripendra Mishra. The forum of energy regulators is a step in the direction of establishing a regulators association.
According to Mansingh, the basic regulatory framework for all sectors will be common to a significant extent and every regulator can hope to improve the effectiveness and quality of the regulatory framework by adopting the best practices evolved by other regulators.
The Integrated Energy Policy had recommended independent regulators for attaining competitive efficiency in the energy sector.
"We could take an initiative in this regard and discuss the issue with the Central Electricity Regulatory Commission (CERC) for the creation of a joint forum for regular exchange of ideas and deliberations on issues of mutual interest. As regulators for other energy sub-sectors are constituted, they would be invited to join this forum. We could act as the convenor for the forum," Mansingh has stated in a letter.
The Integrated Energy Policy had contended that domain knowledge was the key to functioning of independent regulator and a common regulator was not required for all energy sub-sectors. However, to provide cohesion and consistency of regulation across energy sub-sectors, it had recommended that the regulators should meet regularly and arrive at common principles.