Monday, 24 January 2022

ENERGY LAWS IN INDIA- OISINI PODDAR AT LEXCLIQ

 ENERGY LAWS IN INDIA- OISINI PODDAR AT LEXCLIQ

Paraphrased Text

The comprehensive regulatory framework for India's electricity sector is the 2003 Electricity Act, which controls the generation, transmission, distribution, and trading of electricity, including tolls for electricity. The institutional framework of the Electricity Act of 2003 includes the Central and State-level Electrical Regulatory Commission, which appeals to the Electrical Appeals Court (APTEL), which was created under the Electrical Law, and from APTEL to the Supreme Court of India. To do. In 2019, the Supreme Court clarified that it would not intervene in APTEL's decision or the decision of the Regulatory Commission established under the Electricity Law unless a specific law was raised. It also clarified that it will not intervene in issues such as the illegal elements of tariff decisions. 

The upstream sector of India's natural gas sector (ie, exploration and production or E & P) is not subject to any particular law, but instead falls under the general executive authority and enforcement body of the Government of India, namely the Director of the Hydrocarbon Bureau. (DGH), oversees the implementation of monitored E & P operations. However, some aspects of upstream operations are regulated by certain laws, such as the 1948 Oilfield (Regulatory and Development) Act and the 1934 Oil Act. The role of liquefied natural gas (LNG) in the natural gas sector is steadily increasing, with up to 57% of India's total natural gas demand as of September 2019 (ie 2,728 million of total demand). Standard cubic meters of meters or MMSCM) (of 4,754 MMSCM) were covered by regasified LNG.

 Imports of LNG are unregulated and are carried out within the framework of an open general licensing process. LNG terminals must be registered with the Petroleum and Natural Gas Regulatory Commission (PNGRB), which is a regulatory body under the Petroleum and Natural Gas Regulatory Commission Act (PNGRB Act) of 2006, but the rules on how to register have been communicated so far. not. However, entities involved in the construction / installation / operation of LNG terminals must notify PNGRB to ensure proper compliance. The natural gas transmission and distribution segment is regulated by PNGRB, which has legal jurisdiction over the natural gas pipeline and city gas distribution (CGD) network. Within the regulatory framework, the development of CGD networks is mandated only by granting permits to a single entity for well-separated geographic areas. 

This gives the authorized entity an eight-year marketing exclusivity and an infrastructure exclusivity for the economic life of the network (usually considered 25 years). CGD Network permits are usually granted by PNGRB through the competitive bidding process, unless the Government of India issues specific policy directives that delegate the permits to specific entities to promote overall economic development. Such a policy directive ordered the Government of India GAIL India to grant permission to extend the CGD network along the routes of certain natural gas pipelines to ensure the feasibility of the pipeline.


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