law: Electricity Regulatory Commissions Act, 1998 
  22. Function of State Commission 
  (1) Subject to the provisions of Chapter III, the State
  
  Commission shall discharge state the following functions, namely:- 
  (a) to determine the tariff for electricity,
  
  wholesale, bulk, grid or retail, as the case may be, in the manner provided in
  
  section 29;
  (b) to determine the tariff payable for the
  
  use of the transmission facilities in the manner provided in section 29;
  (c) to regulate power purchase and procurement
  
  process of the transmission utilities and distribution utilities including the
  
  price at which the power shall be procured from the generating companies,
  
  generating stations or from other sources for transmission, sale, distribution
  
  and supply in the State;
  (d) to promote competition, efficiency and
  
  economy in the activities of the electricity industry to achieve the objects
  
  and purposes of this Act.
  (2) Subject to the provisions of Chapter III and without
  
  prejudice to the provisions of sub-section (1), the State Government may, by
  
  notification in the Official Gazette, confer any of the following functions
  
  upon the State Commission, namely:- 
  (a) to regulate the investment approval for
  
  generation, transmission, distribution and supply of electricity to the entities
  
  operating within the State;
  (b) to aid and advise the State Government, in
  
  matters concerning electricity generation, transmission, distribution and
  
  supply in the State;
  (c) to regulate the operation of the power
  
  system within the State;
  (d) to issue licenses for transmission, bulk
  
  supply, distribution or supply of electricity and determine the conditions to
  
  be included in the licenses.
  (e) to regulate the working of the licensees
  
  and other persons authorized or permitted to engage in the electricity industry
  
  in the! State and to promote their working in an efficient, economical and
  
  equitable manner;
  (f) to require licensees to formulate
  
  perspective plans and schemes in co-ordination with others for the promotion of
  
  generation, transmission, distribution, supply and utilization of electricity,
  
  quality of service and to devise proper power purchase and procurement process;
  
  
  (g) to set standards for the electricity
  
  industry in the State including standards relating to quality, continuity and
  
  reliability of service;
  (h) to promote competitiveness and make
  
  avenues for participation of private sector in the electricity industry in the
  
  State, and also to ensure a fair deal to the customers;
  (i) to lay down and enforce safety standards;
  (j) to aid and advise the State Government in
  
  the formulation of the State, power policy;
  (k) to collect and record information
  
  concerning the generation, transmission, distribution and utilization of
  
  electricity;
  (l) to collect and publish data and forecasts
  
  on the demand for, and use of, electricity in the State and to require the
  
  licenses to collect and publish such data;
  (m) to regulate the assets, properties and
  
  interest in properties concerning or related to the electricity industry in the
  
  State including the conditions governing entry into, and exit from, the
  
  electricity industry in the such manner as to safeguard the public interest;
  (n) to adjudicate upon the disputes and
  
  differences between the licensees and utilities and to refer the matter for
  
  arbitration;
  (o) to co-ordinate with environmental
  
  regulatory agencies and to evolve policies and procedures for appropriate
  
  environmental regulation of the electricity sector and utilities in the State;
  
  and
  (p) to aid and advise the State Government on
  
  any other matter referred to the State Commission by such Government.
  (3) The State Commission shall exercise its functions in
  
  conformity with the national power plan.