Section 82: Constitution of State Commission

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003

Legal Commentary & Landmark Judgments: Section 82

Section 82 of the Act provides for the constitution of State Electricity Regulatory Commissions (SERCs) in every State, establishing independent state-level regulators for intra-state power generation, transmission, and retail distribution.

  • Statutory Constitution of State Regulators: Obligates every State Government to constitute an independent State Commission as a body corporate with perpetual succession and common seal.
  • Three-Member Commission Composition: Consists of a Chairperson and two other Members appointed by the State Government on the recommendation of an independent Selection Committee.
  • Deemed Continuation of Existing Commissions: Confers seamless statutory continuity on State Commissions established under the repealed 1998 Electricity Regulatory Commissions Act.
Key Landmark Precedents:
  • State of Gujarat v. Utility Users' Welfare Association (2018) 6 SCC 21: Supreme Court affirmed that State Commissions perform vital sovereign adjudicatory functions and must maintain complete judicial independence from State Government interference.
  • Brihanmumbai Electric Supply v. MERC (2013) 4 SCC 71: Supreme Court held that State Commissions are autonomous statutory regulators endowed with wide powers to structure intra-state electricity markets.
  • Gujarat Urja Vikas Nigam Ltd. v. Essar Power Ltd. (2008) 4 SCC 755: Affirmed that State Commissions exercise plenary dispute resolution jurisdiction within their territorial borders.
Courtroom Practice & Strategic Litigation Guidance:

In challenges to state-level power tariffs or licensee distribution licenses, invoke the exclusive jurisdiction of the State Commission under Section 82/86; civil courts possess zero jurisdiction to entertain utility tariff challenges.