As entrusted by the Electricity Act, 2003 the Commission has the responsibility to discharge the following functions:-

Mandatory Functions:-

  • to regulate the tariff of generating companies owned or controlled by the Central Government;.
  • to regulate the tariff of generating companies other than those owned or controlled by the Central Government specified in clause (a), if such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State;
  • to regulate the inter-State transmission of electricity ;
  • to determine tariff for inter-State transmission of electricity;
  • to issue licences to persons to function as transmission licensee and electricity trader with respect to their inter-State operations;
  • Improve access to information for all stakeholders.
  • to adjudicate upon disputes involving generating companies or transmission licensee in regard to matters connected with clauses (a) to (d) above and to refer any dispute for arbitration;
  • to levy fees for the purposes of the Act;
  • to specify Grid Code having regard to Grid Standards;
  • to specify and enforce the standards with respect to quality, continuity and reliability of service by licensees;
  • to fix the trading margin in the inter-State trading of electricity, if considered, necessary;
  • to discharge such other functions as may be assigned under the Act.

Advisory Functions:-

  • formulation of National Electricity Policy and Tariff Policy;
  • promotion of competition, efficiency and economy in the activities of the electricity industry;
  • promotion of investment in electricity industry;
  • any other matter referred to the Central Commission by the Central Government.