This paper looks at the regulatory component of India's electricity reforms from four perspectives. Concerns about governance standards for the sector that set the context ofreforms are noted first, and the re-allocation of powers that reforms brought about is discussed with particular reference to federal issues and the centre–state interface. The paper then evaluates the impact of regulatory reforms on selected performance parametersof the sector. The finding here is that potential gains largely remain to be realised. Next,the new regulatory architecture is compared with the patterns of reforms undertakenin a group of developed countries to draw the conclusion that the design is sound and appropriate for the country's needs. The reasons for the sub-optimal impact are then taken up: these broadly pertain to large capacity shortcomings and ownership patterns that remain much as before the reforms. The paper concludes by noting a few measures that could help to enhance regulatory effectiveness.

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