(1)The Central Commission shall discharge t he following
functions, namely: -
(a)to regulate the tariff of generating companies owned or controlled by the Central Government;
(b)to regulate the tariff of generating companies other than those owned or controlled by the
Central Government specified in clause (a), if such generatin g companies enter into or otherwise have
a composite scheme for generation and sale of electricity in more than one State;
(c)to regulate the inter -State t ransmission of electricity ;
(d)to determine tariff for inter -State transmission of electricity;
(e)to issue licenc es to persons to function as transmission licensee and electricity trader with
respect to their inter -State operations;
(f)to adjudicate upon disputes involving generating companies or transmission licensee in regard
to matters connected w ith clauses (a) to ( d) above and to refer any dispute for arbitration;
(h)to specify Grid Code having regard to Grid Standards;
(i)to specify and enforce the standards with respect to quality, continuity and reliability of service
by licensees;
(j)to fix the trading margin in the inter -State trading of electricity, if considered, necessary;
(k)to discharge such other functions as may be assigned under this Act.
(2)The Central Commission shall advise the Ce ntral Government on all or any of the follow ing
matters, namely: -
(i)formulation of National electricity Policy and tariff policy;
(ii)promotion of competition, efficiency and economy in activities of the electricity industry;
(iii)promotion of investme nt in electricity industry;
(iv)any other matter referred to the Central Commission by that Government.
(3)The Central Commission shall ensure transparency while exercising its powers and discharging its
functions.
(4)In discharge of its functions, the Central Commission shall be guided by the National Electricity
Policy, National Electricity Plan and tariff policy published under section 3.