Section 87: State Advisory Committee

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003

Legal Commentary & Landmark Judgments: Section 87

Section 87 of the Act mandates the constitution of a State Advisory Committee by the State Commission, establishing a consultative forum representing industry, agriculture, labor, and consumer interests.

  • Broad-Based Consultative Committee Structure: Requires the Commission to constitute an Advisory Committee comprising not more than twenty-one members representing diverse socio-economic stakeholders.
  • Direct Public & Industry Representation: Ensures that industrial federations, farmer unions, and residential consumer bodies have formal statutory channels to voice concerns on tariff structures.
  • Mandatory Advisory Consultations: Obligates the Commission to convene the committee regularly to evaluate regulatory impact and service reliability.
Key Landmark Precedents:
  • West Bengal Electricity Regulatory Commission v. CESC Ltd. (2002) 8 SCC 715: Supreme Court affirmed that the State Advisory Committee ensures that local consumer and industrial needs are factored into state regulatory policy.
  • Brihanmumbai Electric Supply v. MERC (2013) 4 SCC 71: Affirmed the importance of consultative governance in retail electricity tariff determination.
  • Tata Power Co. Ltd. v. Reliance Energy Ltd. (2009) 16 SCC 659: Affirmed that advisory mechanisms enhance the legitimacy and public acceptability of regulatory orders.
Courtroom Practice & Strategic Litigation Guidance:

Industrial trade associations should actively utilize Section 87 meetings to present empirical data on industrial cross-subsidy surcharges, urging the Commission to align tariffs with actual cost-of-service curves.