law: Electricity Act, 2003
  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;
  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.
  1.     
  
  
  2.     
  
  
  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.