The Electricity Act, 2003

The Electricity Act, 2003 is a comprehensive legislation that aims to rationalize the electricity supply industry in India. The Act provides for the establishment of State Electricity Regulatory Commissions (SERCs) and Central Electricity Regulatory Commission (CERC) to regulate the power sector. It also mandates the unbundling of the vertically integrated State Electricity Boards (SEBs) into separate generation, transmission, and distribution companies, and encourages competition and private investment in the sector. The Act defines the roles and responsibilities of various stakeholders in the power sector, including the Central and State Governments, electricity licensees, consumers, and regulatory bodies.