Home  /  Electricity Act  /  Section 99

Section 99: Establishment of Fund by Central Government

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003
Section 98 All 185 Sections of Electricity Act Section 100

Legal Commentary & Landmark Judgments: Section 99

Section 99 of the Act provides for the establishment of the Central Electricity Regulatory Commission Fund, into which all grants, loans, and regulatory fees received by the Central Commission shall be credited.

  • Creation of Dedicated Statutory Fund: Establishes a dedicated, non-lapsable fund to receive licensing fees, petition fees, and Central Government budgetary grants.
  • Authorized Expenditures from Fund: Permits the fund to be applied exclusively towards salaries of members and staff, technical consultancy expenses, and operational overheads of the Commission.
  • Fiscal Transparency & Ring-Fencing: Insulates regulatory fees from being diverted to general executive revenues, ensuring funds serve power sector regulatory advancement.
Key Landmark Precedents:
  • PTC India Ltd. v. CERC (2010) 4 SCC 603: Constitution Bench affirmed that the statutory fund established under Section 99 guarantees institutional autonomy and professional capacity building.
  • Tata Power Co. Ltd. v. Reliance Energy Ltd. (2009) 16 SCC 659: Affirmed that regulatory fee structures must be commensurate with regulatory services rendered.
  • West Bengal Electricity Regulatory Commission v. CESC Ltd. (2002) 8 SCC 715: Affirmed that dedicated regulatory funds support transparent and professional administrative adjudication.
Courtroom Practice & Strategic Litigation Guidance:

When paying regulatory petition fees or annual license fees to the CERC, verify that payments are made through the dedicated online portal credited to the Section 99 CERC Fund, retaining the digital receipt for submission.

Section 98 All 185 Sections of Electricity Act Section 100