← Back to The Electricity Act 2003

Section 86. (1) The State Comm

ission 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












































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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.
State
Advisory
Committee