India is a growing economy and this has been achieved by development in various sectors, such as infrastructure, information technology, healthcare, telecom, and so on. Infrastructure is considered to be the one of the cornerstones of any developing society, as it contributes to trade and commerce, as well as to the living standards of any society.
Infrastructure covers areas such as power, roads, water projects, railways, and so on. India has the second largest population in the world and to support this huge population, India is constantly working its power sector to increase its power generating capacity, so that it can meet its power needs.
Power is one of the essential infrastructure components for all nations. India has one of the most diversified power sectors in the world. Sources of power generation in India include conventional sources, such as coal, natural gas, oil, nuclear power, and hydro to fewer mainstream sources, such as wind, solar, and agricultural and domestic waste.
With electricity demand in the country increasing rapidly, there is a great need for increasing the generation capacity of power plants in India. India ranked 26th in the World Bank’s list of electricity accessibility in 2017. The Government of India (GOI) has made “Power for all” a priority. This has resulted in an acceleration of capacity addition in the country.
The overarching legislative framework relating to the electricity sector in India is provided by the Electricity Act, 2003, which governs the generation, transmission, distribution and trading of electricity, including the tariff for sale of electricity.
The institutional framework under the Electricity Act, 2003, comprises electricity regulatory commissions at the central and state levels, with appeal provision provided to an Appellate Tribunal for Electricity (APTEL) which has been created under the Electricity Act, and from APTEL appeal to the Supreme Court of India.
In 2019 the Supreme Court clarified that it would not interfere with the decisions of APTEL, or with those of any of the regulatory commissions established under the Electricity Act, unless a specific question of law is presented. It further clarified that it would not interfere with issues such as elements of tariff determination that do not involve questions of law.
The upstream segment of the natural gas sector in India (i.e., exploration and production, or E&P) is not governed by any specific statute, but instead falls under the overall executive authority of the government of India and an executive body, namely, the Director General of Hydrocarbons (DGH), which oversees the implementation of E&P operations. However, some aspects of upstream operations are controlled by certain laws such as the Oilfields (Regulation and Development) Act, 1948, and the Petroleum Act, 1934.
The role of liquefied natural gas (LNG) in the natural gas sector has been steadily increasing, and in September 2019 up to 57% of the total demand for natural gas in India (i.e., 2,728 million metric standard cubic metres, or MMSCM, out of total demand of 4,754 MMSCM) was met through regasified LNG.
The import of LNG is not regulated and is undertaken under the open general licence regime. Although LNG terminals are required to be registered with the Petroleum and Natural Gas Regulatory Board (PNGRB), the regulatory body under the Petroleum and Natural Gas Regulatory Board Act, 2006 (PNGRB Act), no rules providing the manner of registration have been notified to date. However, entities engaged in construction/installation/operation of LNG terminals should notify the PNGRB to ensure due compliance.
RELEVANT LAWS GOVERNING IN THE ENERGY SECTOR IN INDIA: –
There have always been laws in place to govern the power sector in India. The first central act on electricity came in the year 1910, then came the Electricity Act, 2003, which replaced the old law and introduced a legislation that addressed the needs of the changing times. After this there have been attempts to amend the Electricity Act, 2003, vide the Electricity Amendment Bill, 2014 and the draft Electricity (Amendment) Act, 2018. In this section, we have discussed both the past laws and the present laws.
PAST LAWS-
- The Indian Electricity Act, 1910:
- The Electricity (Supply) Act, 1948:
- The Electricity Regulatory Commissions Act, 1998:
PRESENT LAWS:
- The Electricity Act, 2003:
- The Electricity (Amendment) Bill, 2014
- The Draft Electricity (Amendment) Act, 2018
CONCLUSION: –
A wide range of command-and-control, market-based and voluntary regulations related to energy are present in India. The CAC regulations need to be implemented stringently as the recent change in the energy-related regulations offers several opportunities to benefit every stakeholder. With the Government of India rolling out market-based schemes such as REC and PAT, the dream of making India a low carbon economy‘ will come true in the years to come. The voluntary regulations need to be publicized so that firms can implement them and control their energy-related matters better. The energy regulation mechanism that can work best in the Indian context is a combination of all three approaches. The suggested combination will work best here as being a developing economy, India needs command-and-control regulations to set a limit on the emissions; it also requires market-based mechanisms to develop a strong market for profit earning from energy-related activities and voluntary standards to independently regulate the same.
Aishwarya Says:
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
If you are interested in participating in the same, do let me know.
Do follow me on Facebook, Twitter Youtube and Instagram.
The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.
If you would also like to contribute to my website, then do share your articles or poems at adv.aishwaryasandeep@gmail.com
We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs