Central Electricity Regulatory Commission

The Central Electricity Regulatory Commission (CERC) is the statutory regulator for specified central and inter-State aspects of India's electricity sector. Established under Section 76 of the Electricity Act, 2003, it regulates tariffs, inter-State transmission and trading, while also performing adjudicatory and advisory functions.

Core regulatory mandate

Under Section 79, CERC's jurisdiction primarily covers electricity activities extending beyond one State and generating companies falling within specified categories.

• It regulates tariffs of generating companies owned or controlled by the Central Government.
• It regulates tariffs of other generating companies having a composite scheme for generation and sale of electricity in more than one State.
• It regulates inter-State transmission and determines the tariff for such transmission.
• It grants licences for inter-State electricity transmission and inter-State electricity trading.
• It may fix the trading margin for inter-State electricity trading when considered necessary.

Grid oversight and dispute resolution

CERC combines rule-making, supervisory and adjudicatory responsibilities within its statutory jurisdiction.

• It specifies the Grid Code, having regard to the prescribed Grid Standards.
• It specifies and enforces standards concerning the quality, continuity and reliability of service by licensees.
• It adjudicates disputes involving generating companies or transmission licensees concerning its tariff and inter-State transmission functions, or may refer such disputes to arbitration.
• Under Section 178, it may make regulations consistent with the Act and the rules framed under it.

Advisory role and guiding principles

CERC advises the Central Government on the National Electricity Policy, Tariff Policy, competition, efficiency, economy and investment in the electricity industry. It must ensure transparency and is guided by the National Electricity Policy, Tariff Policy and National Electricity Plan while exercising its powers.

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