Transmission Pricing Reform in India: CERC's Next Frontier

Kumar, Niranjan; Das, Devadutta; Padhy, Narayana Prasad

doi:10.1080/15567240903502560

Cited by 3 publications

(3 citation statements)

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“…Further PUCSL has to declare proper tariff methodology to ensure financial viability of the utilities and to take action to make sure that utility gets required subsidiary from the Treasury, incur with any GOSL policy initiatives. Electricity sector is highly political interest discipline (Dornan, 2014), Transmission pricing is complicated (Kumar et al, 2013) and any increase of electricity tariff would create political complications. Hence it is vital to have proper tariff mechanism for Sri Lanka.…”

Section: Discussionmentioning

confidence: 99%

“…The determination of the tariff to reflect the costs incur with the operations is very important. Kumar et al, (2013) Objective of the study is to quantitatively analyze the major stakeholders' perceptions, ideas and stance on the establishment of Bulk Supply Transaction Account in CEB and figure out the solution on the issue.…”

Section: Legal Framework Of Electricity Sector and Tariff Determinationmentioning

confidence: 99%

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Why Does Transmission Licensee Should Have Bulk Supply Transaction Account in Vertically Integrated Utility in Monopolistic Electricity Market of Sri Lanka

Jayawardena¹,

Kumara²,

Sriyalatha³

2019

pijss

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Sri Lanka has monopolistic electricity market dominated by Ceylon Electricity Board (CEB) in all three aspects of electricity i.e. Generation, transmission and distribution. The Public UtilitiesCommission of Sri Lanka (PUCSL) is the regulatory authority for the electricity sector. PUCSL has informed CEB for establishment of an effective and transparent mechanism to carry out Bulk Supply Transaction Account (BSTA) for implementation of a transparent Tariff Regime. However PEOPLE: International Journal of Social Sciences ISSN 2454-5899381 still CEB has not agreed to establish the BSTA. Since this is an issue where both parties are arguing advantages and disadvantages it was studied qualitatively to figure out the reasons and solution. Hence the objective of the study is to reason out the importance of BSTA and to identify the obstacles of establishing BSTA. We interviewed Director General PUCSL, Transmission Licensee and Distribution licensees of CEB, Lanka electricity Company officials, Donor Agencies and independent experts. It was revealed that the reasons highlighted by the advantages of having BSTA are improvement of efficiency, monitoring by the management on functions and sound financial situation of utility and the counter arguments made by Senior officials of CEB are at present CEB has separate accounting system for transactions, threat of unbundling, no legal provision to do it. However, under the existing legal framework there is no requirement to establish separate physical bank accounts for each licensee of CEB, considering the reasons explained by both parties it can be concluded that implementation of BSTA is important to improve the effective and transparent financial system in the CEB. But it is necessary to have clear legal provisions.However, BSTA is an integral part of tariff methodology. Hence it is necessary to have good tariff methodology for the sector to ensure the financial viability of the utilities.

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Section: Discussionmentioning

confidence: 99%

Section: Legal Framework Of Electricity Sector and Tariff Determinationmentioning

confidence: 99%

Why Does Transmission Licensee Should Have Bulk Supply Transaction Account in Vertically Integrated Utility in Monopolistic Electricity Market of Sri Lanka

Jayawardena¹,

Kumara²,

Sriyalatha³

2019

pijss

View full text Add to dashboard Cite

show abstract

“…Electrical power system was vertically integrated earlier, now it has been deregulated and Generation, Transmission & Distribution are separate entities. The breakup has been encouraged by tremendous benefits, resulting in competition leading to economy and better consumer services [1]. In the competitive electricity system, power industry wants to create returns to reimburse the possessors of transmission resources and to generate the economic indications for competent venture in transmission and for the resourceful place of new generation plant and loads.…”

Section: Introductionmentioning

confidence: 99%