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Karnataka Power Reforms - Regulation of the
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- After enactment of Karnataka Electricity Reform Act in 1999,
the karnataka Electricity Regulatory Commission (KERC) has been established and its now
fully operational. Government of Karnataka would ensure independent functioning of KERC as
per the spirit inherent in the legislationl; GOK intends to take timely actions for
selection of qualified and competent members for the Commission. In case Government
considers that it is necessary to subsidize the supply of power to specific groups of
consumers, it will make provisions in the budget which will be passed on to the utilities
as worked out by the Commission.
- The State Government, as owner of the utilities and policy
maker, endeavours to promote a constructive dialogue with the Commission. The forthcoming
years will be critical to consolidate through changes undergone by the industry, attract
private investors, and ensure that the newly created institutions operate along the
principals and the spirit of the reform program and relevant legislation. Government of
Karnataka endeavors to take all necessary steps to provide a stable and predictable
environment for all the sectors' enitities, and to minimize the perception of risks by all
potential investors, by encouraging, for example, multi-year arrangements, notably for
power tariffs and state subsidies.
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