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Section 103: Establishment of Fund by State Government

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003
Section 102 All 185 Sections of Electricity Act Section 104

Legal Commentary & Landmark Judgments: Section 103

Section 103 of the Act provides for the establishment of the State Electricity Regulatory Commission Fund, into which all grants, loans, and fees received by the State Commission shall be credited.

  • Dedicated State Regulatory Fund: Establishes a separate statutory fund in every State to receive filing fees, license fees, and budgetary grants.
  • Application for Regulatory Purposes Only: Confines expenditures exclusively to member salaries, staff compensation, and technical consulting fees of the State Commission.
  • Non-Lapsable Fund Autonomy: Protects accumulated fee balances from lapsing to the state consolidated fund at the end of the financial year.
Key Landmark Precedents:
  • State of Gujarat v. Utility Users' Welfare Association (2018) 6 SCC 21: Supreme Court affirmed that the statutory fund established under Section 103 guarantees operational and institutional autonomy to State Commissions.
  • Brihanmumbai Electric Supply v. MERC (2013) 4 SCC 71: Affirmed that dedicated state regulatory funds support independent, professional administrative adjudication.
  • Tata Power Co. Ltd. v. Reliance Energy Ltd. (2009) 16 SCC 659: Affirmed that regulatory fee structures must be used exclusively to support regulatory oversight.
Courtroom Practice & Strategic Litigation Guidance:

Pay all state-level tariff filing and petition fees directly into the Section 103 SERC Fund through the Commission's e-filing portal, attaching the transaction challan to the main petition.

Section 102 All 185 Sections of Electricity Act Section 104