Section 81: Objects of Central Advisory Committee

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003

Legal Commentary & Landmark Judgments: Section 81

Section 81 of the Act defines the statutory objects of the Central Advisory Committee, mandating it to advise the Commission on policy issues, quality of service, compliance, and consumer protection.

  • Advisory Mandate on Major Policy Questions: Directs the Committee to advise the Central Commission on national electricity policy, tariff formulation principles, and power exchange regulations.
  • Focus on Service Quality & Reliability: Requires the Committee to monitor transmission congestion, grid frequency discipline, and supply quality.
  • Protection of Consumer Interests: Mandates continuous appraisal of consumer grievance redressal systems and retail supply standards.
Key Landmark Precedents:
  • PTC India Ltd. v. CERC (2010) 4 SCC 603: Constitution Bench highlighted that the objects under Section 81 steer the Commission towards balanced, progressive market regulation.
  • Tata Power Co. Ltd. v. Reliance Energy Ltd. (2009) 16 SCC 659: Affirmed that advisory inputs strengthen regulatory transparency and consumer protection.
  • Brihanmumbai Electric Supply v. MERC (2013) 4 SCC 71: Affirmed the vital constitutional role of consumer welfare in regulatory governance.
Courtroom Practice & Strategic Litigation Guidance:

Trade associations participating in Section 81 advisory sessions should table white papers on transmission open-access surcharges and cross-subsidy phase-out timelines to shape future CERC tariff regulations.