law: Electricity Act, 2003
  86. Functions of
  
  State Commission.-
  1.     
  
    The
  
  State Commission shall discharge the following functions, namely:--
  a.      determine the tariff
  
  for generation, supply, transmission and wheeling of electricity, wholesale,
  
  bulk or retail, as the case may be, within the State:
  Provided
  
  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;
  a.    
  b.     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 agreements for purchase of power for
  
  distribution and supply within the State;
  c.      facilitate
  
  intra-State transmission and wheeling of electricity;
  d.     issue licences to
  
  persons seeking to act as transmission licensees, distribution licensees and
  
  electricity traders with respect to their operations within the State;
  e.      promote cogeneration
  
  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 licensee;
  f.      adjudicate upon the
  
  disputes between the licensees and generating companies and to refer any
  
  dispute for arbitration;
  g.     levy fee for the
  
  purposes of this Act;
  h.      specify State Grid
  
  Code consistent with the Grid Code specified under clause (h) of sub-section
  
  (1) of section 79;
  i.       specify or enforce
  
  standards with respect to quality, continuity and reliability of service by
  
  licensees;
  j.       fix the trading
  
  margin in the intra-State trading of electricity, if considered, necessary;
  k.      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:--
               
  
   i.        
  
    promotion
  
  of competition, efficiency and economy in activities of the electricity
  
  industry;
              
  
   ii.        
  
    promotion
  
  of investment in electricity industry;
             
  
   iii.        
  
    reorganisation
  
  and restructuring of electricity industry in the State;
             
  
   iv.        
  
    matters
  
  concerning generation, transmission, distribution and trading of electricity or
  
  any other matter referred to the State Commission by that Government:
  1.     
  
  
  2.     
  
  
  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.