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THE ELECTRICITY REGULATORY COMMISSIONS ACT,1998

Title : THE ELECTRICITY REGULATORY COMMISSIONS ACT,1998

Year : 1998



(1) Subject to the provisions of Chapter III, the State Commission shall discharge the following functions, namely:-

(a) To determine the tariff for electricity, wholesale, bulk , grid or retail, as the case may be, in the manner provided in section 29;

(b) To determine the tariff payable for the use of the transmission facilities in the manner provided in section 29;

(c) To regulate power purchase and procurement process of the transmission utilities and distribution utilities including the price at which the power shall be procured from the generating companies, generating stations or from other sources for transmission , sale, distribution and supply in the State;

(d) To promote competition, efficiency and economy in the activities of the electricity industry to achieve the objects and purposes of this Act.

(2) Subject to the provisions of Chapter III and without prejudice to the provisions of sub-section (1), the State Government may, by notification in the Official Gazette, confer any of the following functions upon the State Commission, namely:-

(a) To regulate the investment approval for generation, transmission, distribution and supply of electricity to the entities operating within the State;

(b) To aid and advise the State Government, in matters concerning electricity generation, transmission, distribution and supply in the
State;

(c) To regulate the operation of the power system within the State;

(d) To issue licences for transmission, bulk supply, distribution or supply of electricity and determine the conditions to be included in the licences;

(e) To regulate the working of the licensees and other persons authorised or permitted to engage in the electricity industry in the State and to promote their working in an efficient, economical and equitable manner;

(f) To require licensees to formulate perspective plans and schemes in co-ordination with others for the promotion of generation, transmission, distribution, supply and utilisation of electricity, quality of service and to devise proper power purchase and procurement process;

(g) To set standards for the electricity industry in the State including standards relating to quality, continuity and reliability of service;

(h) To promote competitiveness and make avenues for participation of private sector in the electricity industry in the State, and also to ensure a fair deal to the customers;

(i) To lay down and enforce safety standards;

(j) To aid and advise the State Government in the formulation of the State power policy;

(k) To collect and record information concerning the generation, transmission, distribution and utilisation of electricity;

(l) To collect and publish data and forecasts on the demand for, and use of, electricity in the State and to require the licensees to collect and publish such data;

(m) To regulate the assets, properties and interest in properties concerning or related to the electricity industry in the State including the conditions governing entry into, and exit from, the electricity industry in such manner as to safeguard the public interest;

(n) To adjudicate upon the disputes and differences between the licensees and utilities and to refer the matter for arbitration;

(o) To co-ordinate with environmental regulatory agencies and to evolve policies and procedures for appropriate environmental regulation of the electricity sector and utilities in the State; and

(p) To aid and advise the State Government on any other matter referred to the State Commission by such Government;

(3) The State Commission shall exercise its functions in conformity with the national power plan.



The provisions of sections 9, 10 and 12 shall apply to a State Commission and shall have effect, subject to the following modifications, namely:

(a) References to "Central Commission" shall be construed as references to "State Commission";

(b) In sub-section (3) of section 9, the brackets and words "(including the Member ex officio)" shall be omitted.



(1) The State Commission may, by notification, establish with effect from such date as it may specify in such notification, a Committee to be known as the State Advisory Committee.

(2) The State Advisory Committee shall consist of not more than twenty-one members to represent the interests of commerce, industry, transport, agriculture, labour, consumers, non -governmental organisations and academic and research bodies in the energy sector.

(3) The Chairperson and the Members of the State Commission shall be the ex officio Chairperson and ex officio Members of the State Advisory Committee.



The objects of the State Advisory Committee shall be to advise the Commission on-

(i) Major questions of policy;

(ii) Matters relating to quality, continuity and extent of service provided by the licencees;

(iii) Compliance by licencees with the conditions and requirements of their licence;

(iv) Protection of consumer interest; and

(v) Energy supply and overall standards of performance by utilities.



The State Commission shall authorise any person as it deems fit to represent the interest of the consumers in all the proceedings before it .



(1) Any person aggrieved by any decision or order of the State Commission may file an appeal to the High Court.

(2) Except as aforesaid, no appeal or revision shall lie to any court from any decision or order of the State Commission.

(3) Every appeal under this section shall be preferred within sixty days from the date of communication of the decision or order of the State Commission to the person aggrieved by the said decision or order:

Provided that the High Court may entertain an appeal after the expiry of the said period of sixty days if it is satisfied that the aggrieved person had sufficient cause for not preferring the appeal within the said period of sixty days.
Last updated on July, 2016

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