Section 86 of EA 2003, Electricity Act : Section 86: Functions Of State Commission

Explanation using Example

Imagine a scenario where a new renewable energy company, GreenFuture Energy, wants to set up a solar power plant in the state of X. They plan to generate electricity and sell it directly to consumers in the state. Here's how Section 86 of The Electricity Act, 2003 would be applied:

1. GreenFuture Energy approaches the State Electricity Regulatory Commission (SERC) to determine the tariff at which they can sell the solar power. The SERC uses its powers under Section 86(1) to set a fair tariff for the sale of electricity to ensure that prices are reasonable for consumers while allowing GreenFuture Energy to cover its costs and make a profit.
2. The SERC also regulates the purchase of electricity by the distribution licensees fr...

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