Electricity Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003
Section 60 of Electricity Act: Electricity Supply & Regulatory Procedure
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
The Appropriate Commission may issue such directions as it considers appropriate to a licensee or a generating company if such licensee or generating company enters into any agreement or abuses its dominant position or enters into a combination which is likely to cause or causes an adverse effect on competition in the electricity industry.
Legal Commentary & Landmark Judgments: Section 60
Section 60 of the Electricity Act, 2003 empowers the Appropriate Commission to issue directions to any licensee or generating company that enters into any agreement or abuses its dominant position to prevent, restrict, or distort competition in the electricity industry.
Statutory Anti-Trust & Competition Oversight: Vests specialized competition regulation powers in the Electricity Regulatory Commissions to curb monopolistic abuses in generation, transmission, or supply.
Prohibition of Anti-Competitive Agreements: Renders void any power purchase agreement, wheeling arrangement, or cartel practice that creates an appreciable adverse effect on market competition.
Power to Issue Corrective & Structural Directions: Authorizes the Commission to direct the modification of agreements, divestment of assets, or non-discriminatory access to transmission corridors.
Key Landmark Precedents:
Competition Commission of India v. Bharti Airtel Ltd. (2019) 2 SCC 521: Supreme Court held that where specialized sectoral regulators (such as CERC/SERC under Section 60) possess competition oversight, jurisdictional harmony requires initial sectoral appraisal before general CCI intervention.
Tata Power Co. Ltd. v. Reliance Energy Ltd. (2009) 16 SCC 659: Supreme Court held that preventing market manipulation and promoting competitive market development are core statutory functions of Regulatory Commissions.
Energy Watchdog v. CERC (2017) 14 SCC 80: Affirmed the Commission's regulatory duty to maintain open, non-discriminatory competitive markets.
Courtroom Practice & Strategic Litigation Guidance:
If a dominant distribution licensee refuses wheeling access or imposes discriminatory local charges on captive open-access power to protect its retail monopoly, file an immediate petition under Section 60 alleging market distortion and abuse of dominance.
Legal Commentary & Landmark Judgments: Section 60
Section 60 of the Electricity Act, 2003 empowers the Appropriate Commission to issue directions to any licensee or generating company that enters into any agreement or abuses its dominant position to prevent, restrict, or distort competition in the electricity industry.
If a dominant distribution licensee refuses wheeling access or imposes discriminatory local charges on captive open-access power to protect its retail monopoly, file an immediate petition under Section 60 alleging market distortion and abuse of dominance.