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The Nagaland Electricity Regulatory Commission was established under the provisions of Section 82 of the Electricity Act, 2003 as a One-Member Commission to be known as Nagaland Electricity Regulatory Commission (NERC) effective from the date of joining of office of the first Member.

Er. S.I. Longkumer who was appointed as Chairman-cum-Member of the NERC was declared to be the first Member of the Commission and he shall also be its first Chairperson. The Commission was thus established since his oath-taking and induction as Chairman-cum-Member on 4th March, 2008.

The Government made an initial setup of a lean Commission (One-Member Commission) with minimum supporting officers & staff to get the NERC operationalised in order to fulfill the statutory requirement. The Commission presently i.e., since its inception till 2012, is operating with a functionally-deficient establishment in matters of required functional disciplines; which require to be mitigated, through various actions.

Mission Statement of NERC

  • To determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be within the State.
  • To regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through agreements for purchase of power for distribution of supply within the State.
  • Facilitate intra-State transmission and wheeling of electricity.
  • Issue Licences to persons seeking to act as transmission licensees, distribution licensees, and electricity traders with respect to their operations within the State.
  • Promote co-generation and generation of electricity from renewable sources of energy.
  • Adjudicate upon the disputes between the licensees and generation companies and to refer any dispute for arbitration.
  • Levy fee for the purposes of the EA, 2003.
  • Specify State Grid Code.
  • Specify or enforce standards with respect to quality, continuity and reliability of service by Licensees.
  • Fix the trading margin in the intra-State trading of electricity, if considered, necessary.
  • Discharge such other functions as may be assigned to it under the Act.
  • Advise the State Government as mandated under Section 86(2) of the EA, 2003.

Functions of the Commission:

The State Electricity Regulatory Commissions i.e NERC, in respect of Nagaland shall function as mandated by Section 86 of the Electricity Act 2003, an extract of which is placed below:-
(1) The State Commission shall discharge the following functions, namely: –
(a) determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State: Providing that where open access has been permitted to a category of consumers under section 42, the State Commission shall determine only the wheeling charges and surcharge thereon, if any, for the said category of consumers;
(b) regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through 46 agreements for purchase of power for distribution and supply within the State;
(c) facilitate intra-state transmission and wheeling of electricity;
(d) issue licences to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State;
(e) promote congenration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licence;
(f) adjudicate upon the disputes between the licensees, and generating companies and to refer any dispute for arbitration;
(g) levy fee for the purposes of this Act;
(h) specify State Grid Code consistent with the Grid Code specified under clause (h) of sub-section (1) of section 79;
(i) specify or enforce standards with respect to quality, continuity and reliability of service by licensees;
(j) fix the trading margin in the intra-State trading of electricity, if considered, necessary; and
(k) discharge such other functions as may be assigned to it under this Act.

(2) The State Commission shall advise the State Government on all or any of the following matters, namely :-
(i) promotion of competition, efficiency and economy in activities of the electricity industry;
(ii) promotion of investment in electricity industry;
(iii) reorganization and restructuring of electricity industry in the State;
(iv) matters concerning generation, transmission, distribution and trading of electricity or any other matter referred to the State Commission by that Government.

(3) The State Commission shall ensure transparency while exercising its powers and discharging its functions.

(4) In discharge of its functions the State Commission shall be guided by the National Electricity Policy, National Electricity Plan and tariff policy published under section 3.

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