Regulatory Commissions

PART – X
Regulatory Commissions

Constitution, powers and functions of Central Commission


Constitution of Central Commission.
76.
  1. There shall be a Commission to be known as the Central Electricity Regulatory Commission to exercise the powers conferred on, and discharge the functions assigned to, it under this Act.

  2. 14 of 1998.
  3. the Central Commission for the purposes of this Act and the Chairperson, Members, Secretary, and other officers and employees thereof shall deemed to have been appointed under this Act and they shall continue to hold office on the same terms and conditions on which they were appointed under the Electricity Regulatory Commissions Act, 1998.
    Provided that the Chairperson and other Members of the Central Commission appointed, before the commencement of this Act, under the Electricity Regulatory Commissions Act, 1998, may, on the recommendations of the Selection Committee constituted under sub-section (1) of section 78, be allowed, to opt for the terms and conditions under this Act by the Central Government.

  4. The Central Commission shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power to acquire,hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued.
  5. The head office of the Central Commission shall be at such place as the Central Government may, by notification, specify.
  6. The Central Commission shall consist of the following Members namely:-
    1. a Chairperson and three other Members;
    2. the Chairperson of the Authority who shall be the Member, ex officio.
  7. The Chairperson and Members of the Central Commission shall be appointed by the Central Government on the recommendation of the Selection Committee referred to in section 78.
  8. Qualification for appointment of Members of Central Commission.

    77.
    1. The Chairperson and the Members of the Central Commission shall be persons having adequate knowledge of, or experience in,or shown capacity in, dealing with, problems relating to engineering, law, economics, commerce, finance or, management and shall be appointed in the following manner, namely:-
      1. one person having qualifications and experience in the field of engineering with specialisation in generation, transmission or distribution of electricity;
      2. one person having qualifications and experience in the field of finance;
      3. two persons having qualifications and experience in the field of economics, commerce, law or management:
        Provided that not more than one Member shall be appointed under the same category under clause (c).
    2. Notwithstanding anything contained in sub-section (1), the Central Government may appoint any person as the Chairperson from amongst persons who is,or has been, a Judge of the Supreme Court or the Chief Justice of a High Court:
      Provided that no appointment under this sub-section shall be made except after consultation with the Chief Justice of India.
    3. The Chairperson or any other Member of the Central Commission shall not hold any other office.
    4. The Chairperson shall be the Chief Executive of the Central Commission.

    5. Constitution of Selection Committee to recommend Members

      78.
      1. The Central Government shall, for the purposes of selecting the Members of the Appellate Tribunal and the Chairperson and Members of the Central Commission, constitute a Selection Committee consisting of –
        1. Member of the Planning Commission incharge of the energy sector ……………… Chairperson;
        2. Secretary-in-charge of the Ministry of the Central Government dealing with the Department of the Legal Affairs …………. Member;
        3. Chairperson of the Public Enterprises Selection Board …….. Member;
        4. a person to be nominated by the Central Government in accordance with sub-section (2)………………… Member ;
        5. a person to be nominated by the Central Government in accordance with sub-section (3) ………………… Member ;
        6. Secretary-in-charge of the Ministry of the Central Government dealing with power ………………….. Member.

        7. 1 of 1956

      2. For the purposes of clause (d) of sub-section (1), the Central Government shall nominate from amongst persons holding the post of chairperson or managing director, by whatever name called, of any public financial institution specified in section 4A of the Companies Act, 1956.
      3. For the purposes of clause (e) of sub-section (1), the Central Government shall, by notification, nominate from amongst persons holding the post of director or the head of the institution, by whatever name called, of any research, technical or management institution for this purpose.
      4. Secretary-in-charge of the Ministry of the Central Government dealing with Power shall be the Convenor of the Selection Committee.
      5. The Central Government shall, within one month from the date of occurrence of any vacancy by reason of death, resignation or removal of a Member of the Appellate Tribunal or the Chairperson or a Member of the Central Commission and six months before the superannuation or end of tenure of the Member of the Appellate Tribunal or Member of the Central Commission, make a reference to the Selection Committee for filling up of the vacancy.
      6. The Selection Committee shall finalise the selection of the Chairperson and Members referred to in sub-section (5) within three month from the date on which the reference is made to it.
      7. The Selection Committee shall recommend a panel of two names for every vacancy referred to it.
      8. Before recommending any person for appointment as Member of the Appellate Tribunal or the Chairperson or other Member of the Central Commission, the Selection Committee shall satisfy itself that such person does not have any financial or other interest which is likely to affect prejudicially his functions as the Chairperson or Member.
      9. No appointment of the Chairperson or other Member shall be invalid merely by reason of any vacancy in the Selection Committee:
        Provided that nothing contained in this section shall apply to the appointment of a person as the Chairperson of the Central Commission where such person is, or has been , a Judge of the Supreme Court or the Chief Justice of a High person is, or has been , a Judge of the Supreme Court or the Chief Justice of a High Court.

      10. Functions of Central Commission

        79.
        1. The Central Commission shall discharge the following functions, namely:-
          1. to regulate the tariff of generating companies owned or controlled by the Central Government;
          2. 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;
          3. to regulate the inter-State transmission of electricity ;
          4. to determine tariff for inter-State transmission of electricity;
          5. to issue licenses to persons to function as transmission licensee and electricity trader with respect to their inter-State operations.
          6. 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;
          7. to levy fees for the purposes of this Act;
          8. to specify Grid Code having regard to Grid Standards;
          9. to specify and enforce the standards with respect to quality, continuity and reliability of service by licensees.
          10. to fix the trading margin in the inter-State trading of electricity, if considered, necessary;
          11. 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 :- (a) 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.
        Central Advisory Committee.
        80.
        1. The Central Commission may, by notification, establish with effect from such date as it may specify in such notification, a Committee to be known as the Central Advisory Committee.
        2. The Central Advisory Committee shall consist of not more than thirty-one members to represent the interests of commerce, industry, transport, agriculture, labour, consumers, non-governmental organisations and academic and research bodies in the electricity sector.
        3. The Chairperson of the Central Commission shall be the exofficio Chairperson of the Central Advisory Committee and the Members of that Commission and Secretary to the Government of India in charge of the Ministry or Department of the Central Government dealing with Consumer Affairs and Public Distribution System shall be the ex-officio Members of the Committee.
        Objects of Central Advisory Committee
        81.

        The objects of the Central Advisory Committee shall be to advise the Central Commission on:--

        1. major questions of policy;
        2. matters relating to quality, continuity and extent of service provided by the licensees;
        3. compliance by the licensees with the conditions and requirements of their licence;
        4. protection of consumer interest;
        5. electricity supply and overall standards of performance by utilities.

        Constitution, powers and functions of the State Commissions


        Constitution of State Commission
        82.
        1. Every State Government shall, within six months from the appointed date, by notification, constitute for the purposes of this Act, a Commission for the State to be known as the (name of the State) Electricity Regulatory Commission:

        2. 14 of 1998


          Provided that the State Electricity Regulatory Commission, established by a State Government under section 17 of the Electricity Regulatory Commissions Act, 1998 and the enactments specified in the Schedule, and functioning as such immediately before the appointed date shall be the State Commission for the purposes of this Act and the Chairperson, Members, Secretary, and other officers and other employees thereof shall continue to hold office, on the same terms and conditions on which they were appointed under those Acts.

          Provided further that the Chairperson and other Members of the State Commission appointed before the commencement of this Act under the Electricity Regulatory Commissions Act, 1998 or under the enactments specified in the Schedule, may on the recommendations of the Selection Committee constituted under sub-section (1) of Section 85 be allowed to opt for the terms and conditions under this Act by the concerned State Government.

        3. The State Commission shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued.
        4. The head office of the State Commission shall be at such place as the State Government may, by notification, specify.
        5. The State Commission shall consist of not more than three Members, including the Chairperson.
        6. The Chairperson and Members of the State Commission shall be appointed by the State Government on the recommendation of a Selection Committee referred to in section 85
        Joint Commission
        83.
        1. Notwithstanding anything to the contrary contained in section 82, a Joint Commission may be constituted by an agreement to be entered into -
          1. by two or more Governments of States; or
          2. by the Central Government, in respect of one or more Union territories, and one or more Governments of States,
          3. and shall be in force for such period and shall be subject to renewal for each further period, if any, as may be stipulated in the agreement:


            14 of 1998

            Provided that the Joint Commission, constituted under section 21 A of Electricity Regulatory Commissions Act, 1998 and functioning as such immediately before the appointed day, shall be the Joint Commission for the purposes of this Act and the Chairperson, members, Secretary and other officers and employees thereof shall be deemed to have been appointed as such under this Act and they shall continue to hold office, on the same terms and conditions on which they were appointed under the Electricity Regulatory Commissions Act, 1998.

        2. The Joint Commission shall consists of 1 Member from each of the participating States and Union Territories and the Chairperson shall be appointed from amongst the Members by consensus, failing which by rotation.
        3. An agreement under sub-section (1) shall contain provisions as to the name of the Joint Commission, the manner in which the participating States may be associated in the selection of the Chairperson and Members of the Joint Commission, manner of appointment of Members and appointment of Chairperson by rotation or consensus, places at which the Commission shall sit, apportionment among the participating States of the expenditure in connection with the Joint Commission, manner in which the differences of opinion between the Joint Commission and the State Government concerned would be resolved and may also contain such other supplemental, incidental and consequential provisions not inconsistent with this Act as may be deemed necessary or expedient for giving effect to the agreement.
        4. The Joint Commission shall determine tariff in respect of the participating States or Union Territories separately and independently.
        5. Notwithstanding anything contained in this section, the Central Government may, if so authorised by all the participating States, constitute a Joint Commission and may exercise the powers in respect of all or any of the matters specified under sub-section (3) and specifically so authorized by the participating States.
        Qualifications of appointment of Chairperson and Members of State Commission.
        84.
        1. The Chairperson and the Members of the State Commission shall be persons of ability, integrity and standing who have adequate knowledge of, and have shown capacity in, dealing with problems relating to engineering, finance, commerce, economics, law or management.
        2. Notwithstanding anything contained in sub-section (1), the State Government may appoint any person as the Chairperson from amongst persons who is, or has been, a Judge of a High Court: 45 is, or has been, a Judge of a High Court: Provided that no appointment under this sub-section shall be made except after consultation with the Chief Justice of that High Court.
        3. The Chairperson or any other Member of the State Commission shall not hold any other office.
        4. The Chairperson shall be the Chief Executive of the State Commission.
        Constitution of Selection Committee to select Members of State Commission.
        85.
        1. The State Government shall, for the purposes of selecting the Members of the State Commission, constitute a Selection Committee consisting of –
          1. a person who has been a Judge of the High Court…. Chairperson;
          2. the Chief Secretary of the concerned State… … … … . ….Member;
          3. the Chairperson of the Authority or the Chairperson of the Central Commission … … … … .. Member: Provided that nothing contained in this section shall apply to the appointment of a person as the Chairperson who is or has been a Judge of the High Court.
        2. The State Government shall, within one month from the date of occurrence of any vacancy by reason of death, resignation or removal of the Chairperson or a Member and six months before the superannuation or end of tenure of the Chairperson or Member, make a reference to the Selection Committee for filling up of the vacancy.
        3. The Selection Committee shall finalise the selection of the Chairperson and Members within three month from the date on which the reference is made to it.
        4. The Selection Committee shall recommend a panel of two names for every vacancy referred to it.
        5. Before recommending any person for appointment as the Chairperson or other Member of the State Commission, the Selection Committee shall satisfy itself that such person does not have any financial or other interest which is likely to affect prejudicially his functions as Chairperson or Member, as the case may be. (6) No appointment of Chairperson or other Member shall be invalid merely by reason of any vacancy in the Selection Committee.
        Functions of State Commission
        86.
        1. The State Commission shall discharge the following functions, namely:
          1. determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State: Providing that where open access has been permitted to a category of consumers under section 42, the State Commission shall determine only the wheeling charges and surcharge thereon, if any, for the said category of consumers;
          2. regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through 46 agreements for purchase of power for distribution and supply within the State;
          3. facilitate intra-state transmission and wheeling of electricity;
          4. issue licences to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State;
          5. promote congenration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licence;
          6. adjudicate upon the disputes between the licensees, and generating companies and to refer any dispute for arbitration;
          7. levy fee for the purposes of this Act;
          8. specify State Grid Code consistent with the Grid Code specified under clause (h) of sub-section (1) of section 79;
          9. specify or enforce standards with respect to quality, continuity and reliability of service by licensees;
          10. fix the trading margin in the intra-State trading of electricity, if considered, necessary; and
          11. discharge such other functions as may be assigned to it under this Act.
        2. The State Commission shall advise the State Government on all or any of the following matters, namely :-.
          1. promotion of competition, efficiency and economy in activities of the electricity industry;
          2. promotion of investment in electricity industry;
          3. reorganization and restructuring of electricity industry in the State;
          4. matters concerning generation, transmission , distribution and trading of electricity or any other matter referred to the State Commission by that Government.
        3. The State Commission shall ensure transparency while exercising its powers and discharging its functions.
        4. In discharge of its functions the State Commission shall be guided by the National Electricity Policy, National Electricity Plan and tariff policy published under section 3.
        State Advisory Committee
        87.
        1. The State Commission may, by notification, establish with effect from such date as it may specify in such notification, a Committee to be known as the State Advisory Committee.
        2. The State Advisory Committee shall consist of not more than twenty-one members to represent the interests of commerce, industry, transport, agriculture, labour, consumers, non-governmental organisations and academic and research bodies in the electricity sector.
        3. The Chairperson of the State Commission shall be the ex-officio Chairperson of the State Advisory Committee and the Members of the State Commission and the Secretary to State Government in charge of the Ministry or Commission and the Secretary to State Government in charge of the Ministry or Department dealing with Consumer Affairs and Public Distribution System shall be the ex-officio Members of the Committee.
        Objects of State Advisory Committee
        88.

        The objects of the State Advisory Committee shall be to advise the Commission on –

        1. major questions of policy;
        2. matters relating to quality, continuity and extent of service provided by the licensees;
        3. compliance by licensees with the conditions and requirements of their licence:
        4. protection of consumer interest; and
        5. electricity supply and overall standards of performance by utilities.

        Appropriate Commission – Other Provisions


        Term of office and conditions of service of members
        89.
        1. The Chairperson or other Member shall hold office for a term of five years from the date he enters upon his office; Provided that the Chairperson or other Member in the Central Commission or the State Commission shall not be eligible for re-appointment in the same capacity as the Chairperson or a Member in that Commission in which he had earlier held office as such : Provided further that no Chairperson or Member shall hold office as such after he has attained the age of sixty-five years.
        2. The salary, allowances and other terms and conditions of service of the Chairperson and Members shall be such as may be prescribed by the Appropriate Government. Provided that the salary, allowances and other terms and conditions of service of the Members, shall not be varied to their disadvantage after appointment.
        3. Every Member shall, before entering upon his office, make and subscribe to an oath of office and secrecy in such form and in such manner and before such authority as may be prescribed.
        4. Notwithstanding anything contained in sub-section (1), a Member may-
          1. Relinquish his office by giving in writing to the Appropriate Government a notice of not less than three months; or
          2. be removed from his office in accordance with the provisions of section 90.
        5. Any member ceasing to hold office as such shall –
          1. not accept any commercial employment for a period of two years from the date he ceases to hold such office; and
          2. not represent any person before the Central Commission or any State Commission in any manner.

          Explanation. - For the purposes of this sub-section "commercial employment” means employment in any capacity in any organisation which has been a party to the proceedings before the Appropriate Commission or employment in any capacity under, or agency of, a person engaged in trading, commercial, industrial or financial business in electricity industry and includes a director of a company or partner of a firm or setting up practice either independently or as partner of a firm or as an advisor or a consultant.

        Removal of member.
        90.
        1. No Member shall be removed from office except in accordance with the provisions of this section.
        2. The Central Commission, in the case of a Member of the Central Commission, and the State Government, in the case of a Member of the State Commission, may by order remove from office any Member, if he-
          1. has been adjudged an insolvent;
          2. has been convicted of an offence which, in the opinion of the Appropriate Government, involves moral turpitude;
          3. has become physically or mentally incapable of acting as a Member;
          4. has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member;
          5. has so abused his position as to render his continuance in office prejudicial to the public interest; or
          6. has been guilty of proved misbehaviour: Provided that no Member shall be removed from his office on any ground specified in clauses (d), (e) and (f) unless the Chairperson of the Appellate Tribunal on a reference being made to him in this behalf by the Central Government, or the State Government, as the case may be, has, on an inquiry, held by him in accordance with such procedure as may be prescribed by the Central Government, reported that the Member ought on such ground or grounds to be removed.
        3. The Central Government or the State Government, as the case may be, may, in consultation with the Chairperson of the Appellate Tribunal suspend any Member of the Appropriate Commission in respect of whom a reference has been made to the Chairperson of the Appellate Tribunal, under sub-section (2) until the Central Government or the State Government, as the case may be, has passed orders on receipt of the report of the Chairperson of the Appellate Tribunal, on such reference :

          Provided that nothing contained in this section shall apply to the Chairperson of the Appropriate Commission who, at the time of his appointment as such is a sitting Judge of the Supreme court or the chief Justice of a High Court or a Judge of a High Court.

        Proceedings and powers of the Appropriate Commission


        Secretary Officers and other
        91.
        1. The Appropriate Commission may appoint a Secretary to exercise such powers and perform such duties as may be specified.
        2. employees of Appropriate Commission .

          such powers and perform such duties as may be specified.

        3. The Appropriate Commission may, with the approval of the Appropriate Government, specify the numbers, nature and categories of other officers and employees.
        4. The salaries and allowances payable to, and other term and conditions of service of, the Secretary, officers and other employees shall be such as may be specified with the approval of the Appropriate Government.
        5. The Appropriate Commission may appoint consultants required to assist that Commission in the discharge of its functions on the terms and conditions as may be specified. 5 of 1908
        Proceedings of Appropriate Commission.
        92.
        1. The Appropriate Commission shall meet at the head office or any other place at such time as the Chairperson may direct, and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at its meetings) as it may specify.
        2. The Chairperson, or if he is unable to attend a meeting of the Appropriate Commission, any other Member nominated by the Chairperson in this behalf and, in the absence of such nomination or where there is no Chairperson, any Member chosen by the Members present from among themselves, shall preside at the meeting.
        3. All questions which come up before any meeting of the Appropriate Commission shall be decided by a majority of votes of the Members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding shall have a second or casting vote.
        4. Save as otherwise provided in sub-section (3), every Member shall have one vote.
        5. All orders and decisions of the Appropriate Commission shall be authenticated by its Secretary or any other officer of the Commission duly authorised by the Chairperson in this behalf.
        Vacancies, etc., not to invalidate proceedings.
        93.

        No act or proceedings of the Appropriate Commission shall be questioned or shall be invalidated merely on the ground of existence of any vacancy or defect in the constitution of the Appropriate Commission.

        Powers of Appropriate Commission
        94.
        1. The Appropriate Commission shall, for the purposes of any inquiry or proceedings under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 in respect of the following matters, namely: -
          1. summoning and enforcing the attendance of any person and examining him on oath;
          2. discovery and production of any document or other material object producible as evidence;
          3. receiving evidence on affidavits;
          4. requisitioning of any public record;
          5. issueing commission for the examination of witnesses;
          6. reviewing its decisions, directions and orders; 5 of 1908. 50
          7. any other matter which may be prescribed.
        2. The Appropriate Commission shall have the powers to pass such interim order in any proceeding, hearing or matter before the Appropriate Commission, as that Commission may consider appropriate.
        3. The Appropriate Commission may authorise any person, as it deems fit, to represent the interest of the consumers in the proceedings before it.
        Proceedings before Commission.
        95.

        All proceedings before the Appropriate Commission shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code and the Appropriate Commission shall be deemed to be a civil court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973.

        45 of 1860. 2 of 1974.
        Powers of entry and seizure.
        96.

         The Appropriate Commission or any officer, not below the rank of a Gazetted Officer specially authorised in this behalf by the Commission, may enter any building or place where the Commission has reason to believe that any document relating to the subject matter of the inquiry may be found, and may seize any such document or take extracts or copies therefrom subject to the provisions of section 100 of the Code of Criminal Procedure, 1973, insofar as it may be applicable.

        Delegation .
        97.

        The Appropriate Commission may, by general or special order in writing, delegate to any Member, Secretary officer of the Appropriate Commission or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the powers to adjudicate disputes under Section 79 and Section 86 and the powers to make regulations under section 178 or section 181) as it may deem necessary.

        Grants, Fund, Accounts, Audit and Report


        Grants and loans by Central Government
        98.

        The Central Government may, after due appropriation made by Parliament in this behalf, make to the Central Commission grants and loans of such sums of money as that Government may consider necessary.

        Establishment of Fund by Central Government
        99.
        1. There shall be constituted a Fund to be called the Central Electricity Regulatory Commission Fund and there shall be credited thereto-
          1. any grants and loans made to the Central Commission by the Central Government under section 98;
          2. all fees received by the Central Commission under this Act;
          3. all sums received by the Central Commission from such other sources as may be decided upon by the Central Government.
        2. The Fund shall be applied for meeting –
          1. the salary, allowances and other remuneration of Chairperson, Members, Secretary, officers and other employees of the Central Commission;
          2. the expenses of the Central Commission in discharge of its function under section 79;
          3. the expenses on objects and for purposes authorised by this Act.
        3. The Central Government may, in consultation with the Comptroller and Auditor-General of India, prescribe the manner of applying the Fund for meeting the expenses specified in clause (b) or clause (c) of sub-section (2).
        Accounts and Audit of Central Commission.
        100.
        1. The Central Commission shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.
        2. The accounts of the Central Commission shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Central Commission to the Comptroller and Auditor General of India.
        3. The Comptroller and Auditor-General of India and any person appointed by him in connection with the auditing of the accounts of the Central Commission under this Act shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Central Commission.
        4. The accounts of the Central Commission, as certified by the Comptroller and Auditor- General of India or any other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded annually to the Central Government and that Government shall cause the same to be laid, as soon as may be after it is received, before each House of Parliament.
        Annual Report of Central Commission
        101.
        1. The Central Commission shall prepare once every year, in such form and at such time as may be prescribed, an annual report giving a summary of its activities during the previous year and copies of the report shall be forwarded to the Central Government.
        2. A copy of the report received under sub-section (1) shall be laid, as soon as may be after it is received, before each House of Parliament.
        Grants and Loans by State Government
        102.

        The State Government may, after due appropriation made by Legislature of a State in this behalf, make to the State Commission grants and loans of such sums of money as that Government may consider necessary.

        Establishment of Fund by State Government
        103.
        1. There shall be constituted a Fund to be called the State Electricity Regulatory Commission fund and there shall be credited thereto-
          1. any grants and loans made to the State Commission by the State Government under Section 102;
          2. all fees received by the State Commission under this Act;
          3. all sums received by the State Commission from such other sources as may be decided upon by the State Government.
        2. The Fund shall be applied for meeting –
          1. the salary, allowances and other remuneration of Chairperson, Members, Secretary, officers and other employees of the State Commission;
          2. the expenses of the State Commission in discharge of its function under Section 86; and
          3. the expenses on objects and for purposes authorised by this Act.
        3. The State Government may, in consultation with the Comptroller and Auditor-General of India, prescribe the manner of applying the Fund for meeting the expenses specified in clause (b) or clause (c) of sub-section (2).
        Accounts and audit of State Commission
        104.
        1. The State Commission shall maintain proper accounts and other relevant records and prepare annual statement of accounts in such forms as may be prescribed by the State Government in consultation with the Comptroller and Auditor-General of India.
        2. The Accounts of the State Commission shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the State Commission to the Comptroller and Auditor- General of India.
        3. The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the State Commission under this Act shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General of India generally has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the State Commission.
        4. The accounts of the State Commission, as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the State Government and that Government shall cause the same to be laid , as soon as may be after it is received, before the State Legislature.
        Annual report of State Commission
        105.
        1. The State Commission shall prepare once every year in such form and at such time as may be prescribed, an annual report giving a summary of its activities during the previous year and copies of the report shall be forwarded to the State Government.
        2. A copy of the report received under sub-section ( 1 ) shall be laid, as soon as may be after it is received, before the State Legislature.
        Budget of Appropriate Commission
        106.

        The Appropriate Commission shall prepare, in such form and at such time in each financial year as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of that Commission and forward the same to the Appropriate Government.

        Directions by Central Government
        107.
        1. In the discharge of its functions, the Central Commission shall be guided by such directions in matters of policy involving public interest as the Central Government may give to it in writing.
        2. If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the Central Government thereon shall be final.
        Directions by State Government.
        108.
        1. In the discharge of its functions, the State Commission shall be guided by such directions in matters of policy involving public interest as the State Government may give to it in writing.
        2. If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the State Government thereon shall be final.
        Directions to Joint Commission.
        109.

        Notwithstanding anything contained in this Act, where any Joint Commission is established under section 83 –

        1. (a) the Government of the State, for which the Joint Commission is 53 established, shall be competent to give any direction under this Act only in cases where such direction relates to matter within the exclusive territorial jurisdiction of the State; (b) the Central Government alone shall be competent to give any direction under this Act where such direction relates to a matter within the territorial jurisdiction of two or more States or pertaining to a Union territory if the participating Governments fail to reach an agreement or the participating States or majority of them request the Central Government to issue such directions.