Objectives

Functions of the Commission under Act 14 of 1998

The Commission was required to discharge the functions as given under Section 22(1) of the Electricity Regulatory Commission Act, 1998, No. 14 of 1998:

to determine the tariff for electricity, wholesale, bulk, grid or retail, as the case may be, in the manner provided in Section 29.

to determine the tariff payable for the use of transmission facilities in the manner provided in Section 29.

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.

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

to issue transmission licence under the Electricity Law Amendment Act, 1998 (sec. 27D I.E. Act, 1910 as amended).

to adjudicate upon the disputes and differences between the licensees and utilities and to refer the matter for arbitration under Section 22(2)(n) of the Electricity Regulatory Commission Act, 1998 (vide notification No: 46-Power/III dated 28.2.2001)

to aid and advise the State Government on any other matter referred to the State Commission by such Government, under section 22 (p) of the ERC Act, 1998.

Functions of the Commission under act 36 of 2003

The Commission is to discharge the functions as given under section 86 of The Electricity Act, 2003 (36 of 2003).

(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:  Provided 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 agreements to 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 cogeneration 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 distribution licensee;

     (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.