Objective and Function of TERC

Objective : Main object of the Commission is to ensure that electricity has been provided by the Utilities to all house-holds in the State at a affordable price by 24/7 in spite of completion of power sector. For undertaking the activity of Generation of electricity no licence is required from the Commission . But , Commission has issue Licence for the activities of Transmission , Distribution and Trading of energy through out the state . This Commission shall ensure transparency while exercising its power and discharging its functions .The Commission will observe the interest of Consumers as well as the licensees .


Function of TERC : The Commission has to discharge the following function as per provision of Section 86 of Electricity Act,2003 :-

  1. Determine the tariff for generation , supply ,transmission and wheeling of electricity ,wholesale, bulk or retail, as the case may be within the state .
  2. Regulate Electricity purchase and procurement process of distribution licensee 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 .
  3. Facilitate Intra-State transmission and wheeling or electricity,
  4. Issue licences to the person seeking to act as transmission licensees ,distribution licensees and electricity traders with respect to their operation within the state ,
  5. Promote co-generation 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 purpose of electricity from such sources , a percentage of the total consumption of electricity in the area of a distribution licensee ,
  6. Adjudicate upon the dispute between the licensees and generating companies and to refer any dispute for arbitration ,
  7. Levy fee for the purposes of Electricity Act,2003,
  8. Specify State Grid Code ,
  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 ,
  11. Discharge such other functions as may be assigned to it under the Electricity Act,2003 ,
  12. Advise the State Government on all or any of the following matters namely-:-
  1. Promotion of competition ,efficiency and economy in the activities of the electricity industries ,
  2. Promotion of investment in the electricity industry ,
  3. Reorganisation and restructuring of the electricity industry in the State ,
  4. Mater concerning generation , transmission , distribution and trading of electricity or any other matter referred to the State Commission by that Government ,
  1. The State Commission shall ensure transparency while exercising its powers and discharging  its functions ,
  2. In discharge of its functions , the State Commission shall be guided by the National Electricity Policy , National Tariff Policy and National Plan under Section 3 of Electricity Act,2003 .