Electricity Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003
Section 66 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 shall endeavour to promote the development of a market (including trading) in power in such manner as may be specified and shall be guided by the National Electricity Policy referred to in section 3 in this regard.
Legal Commentary & Landmark Judgments: Section 66
Section 66 of the Electricity Act, 2003 directs the Appropriate Commission to promote the development of a market (including trading) in power, in such manner as may be specified and guided by the National Electricity Policy.
Mandate to Foster Competitive Power Markets: Charges the Commission with an affirmative statutory duty to establish power exchanges, trading platforms, and ancillary service markets.
Enhancement of Liquidity & Price Discovery: Facilitates transparent spot, day-ahead, and real-time electricity markets, maximizing generation efficiency across India.
Regulatory Oversight Against Market Gaming: Authorizes the Commission to monitor market concentrations, bidding behavior, and algorithmic trading to prevent market manipulation.
Key Landmark Precedents:
PTC India Ltd. v. CERC (2010) 4 SCC 603: Constitution Bench held that the mandate under Section 66 to develop power markets is a broad legislative charter authorizing the creation of power exchanges and regulatory trading caps.
Energy Watchdog v. CERC (2017) 14 SCC 80: Supreme Court recognized that market development under Section 66 has transformed the Indian power sector from rigid bilateral monopolies into dynamic multi-buyer markets.
Tata Power Co. Ltd. v. Reliance Energy Ltd. (2009) 16 SCC 659: Affirmed that promoting market development is a continuous regulatory duty of the Commission.
Courtroom Practice & Strategic Litigation Guidance:
Power market participants launching innovative energy trading products (e.g., green term-ahead or contracts-for-difference) must petition CERC under Section 66 for approval of exchange bye-laws and risk-management parameters prior to market rollout.
Legal Commentary & Landmark Judgments: Section 66
Section 66 of the Electricity Act, 2003 directs the Appropriate Commission to promote the development of a market (including trading) in power, in such manner as may be specified and guided by the National Electricity Policy.
Power market participants launching innovative energy trading products (e.g., green term-ahead or contracts-for-difference) must petition CERC under Section 66 for approval of exchange bye-laws and risk-management parameters prior to market rollout.