Section 79 — Functions of Central Commission.

79. Functions of Central Commission.–(1) The Central Commission shall discharge the following 
functions, namely:– 

(a) to regulate the tariff of generating companies owned or controlled by the Central Government; 

(b) 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; 

(c) to regulate the inter-State transmission of electricity; 

(d) to determine tariff for inter-State transmission of electricity; 

(e) to issue licences to persons to function as transmission licensee and electricity trader with 
respect to their inter-State operations; 

(f) 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; 

(g) to levy fees for the purposes of this Act; 

(h) to specify Grid Code having regard to Grid Standards; 

(i) to specify and enforce the standards with respect to quality, continuity and reliability of service 
by licensees; 
  



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(j) to fix the trading margin in the inter-State trading of electricity, if considered, necessary; 

(k) to discharge such other functions as may be assigned under this Act. 

(2) The Central Commission shall advise the Central Government on all or any of the following 
matters, namely:– 

(i) formulation of National electricity Policy and tariff policy; 

(ii) promotion of competition, efficiency and economy in activities of the electricity industry; 

(iii) promotion of investment in electricity industry; 

(iv) any other matter referred to the Central Commission by that Government. 

(3) The Central Commission shall ensure transparency while exercising its powers and discharging its 
functions. 

(4) In discharge of its functions, the Central Commission shall be guided by the National Electricity 
Policy, National Electricity Plan and tariff policy published under section 3.