Section 79: Functions of Central Commission

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003

Legal Commentary & Landmark Judgments: Section 79

Section 79 of the Electricity Act, 2003 defines the statutory functions of the Central Commission, vesting it with exclusive jurisdiction to regulate tariffs of generating companies supplying power to more than one State, regulate inter-state transmission, and adjudicate disputes.

  • Exclusive Tariff Jurisdiction Over Composite Schemes: Confers exclusive jurisdiction under clause (b) to regulate tariffs of generating companies owning or operating a 'composite scheme' for generation and sale of power in more than one State.
  • Regulation of Inter-State Transmission & Open Access: Vests plenary authority under clause (c) and (d) to regulate inter-state transmission of electricity and determine non-discriminatory open access charges.
  • Plenary Dispute Adjudication & Arbitration Authority: Authorizes the Central Commission under clause (f) to adjudicate disputes involving generating companies or transmission licensees, or refer disputes to statutory arbitration.
Key Landmark Precedents:
  • Energy Watchdog v. CERC (2017) 14 SCC 80: Supreme Court held that a generating company has a 'composite scheme' under Section 79(1)(b) if it generates and supplies power to more than one State; once a composite scheme exists, the CERC has exclusive jurisdiction overriding State Commissions completely.
  • PTC India Ltd. v. CERC (2010) 4 SCC 603: Constitution Bench affirmed that Section 79 confers wide regulatory and adjudicatory powers, enabling CERC to fix trading margins and regulate grid reliability.
  • Gujarat Urja Vikas Nigam Ltd. v. Essar Power Ltd. (2008) 4 SCC 755: Supreme Court held that statutory dispute resolution under the Electricity Act completely overrides general commercial arbitration under the Arbitration and Conciliation Act, 1996.
Courtroom Practice & Strategic Litigation Guidance:

If a power generator supplies power to buyers in multiple States under separate PPAs, always invoke CERC jurisdiction under Section 79(1)(b) & (f); invoking State Commissions will result in threshold dismissal for lack of subject-matter jurisdiction under Energy Watchdog.