Section 79 of EA 2003, Electricity Act : Section 79: Functions Of Central Commission

Explanation using Example

Imagine a scenario where a state-owned power generation company, PowerGen, is expanding its operations to supply electricity to multiple states. Since PowerGen is controlled by the Central Government, the Central Electricity Regulatory Commission (CERC), as per Section 79(1)(a) of the Electricity Act, 2003, would regulate the tariff for the electricity generated by PowerGen.

Additionally, if PowerGrid, a private company, operates a transmission network that carries electricity across state boundaries, CERC, under Section 79(1)(c) and (d), would regulate the inter-State transmission of electricity and determine the tariff for such transmission.

Furthermore, if PowerTrade, a company that trades electricity between states, wishes to operate in the inter-State market, it would need a license from CERC as per Section 79(1)(e).

In case of a dispute between PowerGen and PowerGrid regarding transmission charges, CERC would adjudicate upon the dispute under Section 79(1)(f).

While performing these functions, CERC would ensure transparency as mandated by Section 79(3) and would be guided by policies outlined under Section 79(4).