Commission

1. (1) The State Government shall, for the purposes of selecting the Members

of the State Commission, constitute a Selection Committee consisting of –

1. (a) a person who has been a Judge of the High Court... . Chairperson; (b)

the Chief Secretary of the concerned State... ... ... ... . ... .Member;

1. (c) the Chairperson of the Authority or

the Chairperson of the Central Commission ... ... ... ... .. Member:

Provided that nothing contained in this section shall apply to the appointment of a person as the Chairperson who is or has been a Judge of the High Court.

1. (2) The State Government shall, within one month from the date of occurrence of any vacancy by reason of death, resignation or removal of the Chairperson or a Member and six months before the superannuation or end of tenure of the Chairperson or Member, make a reference to the Selection Committee for filling up of the vacancy.
2. (3) The Selection Committee shall finalise the selection of the Chairperson and Members within three month from the date on which the reference is made to it.
3. (4) The Selection Committee shall recommend a panel of two names for every vacancy referred to it.
4. (5) Before recommending any person for appointment as the Chairperson or other Member of the State Commission, the Selection Committee shall satisfy itself that such person does not have any financial or other interest

1. (6) No appointment of Chairperson or other Member shall be invalid merely by reason of any vacancy in the Selection Committee. 86. (1) The State Comm ission shall discharge the following functions, namely: -
   • (a) determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State: Providing that where open access has been permitted to a category of consumers under section 42, the State Commission shall determine only the wheeling charges and surcharge thereon, if any, for the said category of consumers;
   • (b) regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through

agreements for purchase of power for distribution and supply within the State;

1. (c) facilitate intra-state transmission and wheeling of electricity;
2. (d) issue licences to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State;
3. (e) promote congenration and generation of electricity from

renewable sources of energy by providing suitable measures for connectivity with

the grid and sale of electricity to any person, and also specify, for purchase of

1. (f) adjudicate upon the disputes between the licensees, and generating companies and to refer any dispute for arbitration;
2. (g) levy fee for the purposes of this Act;
3. (h) specify State Grid Code consistent with the Grid Code

specified under clause (h) of sub-section (1) of section 79;

1. (i) specify or enforce standards with respect to quality, continuity and reliability of service by licensees;

1. (j) fix the trading margin in the intra-State trading of electricity, if considered, necessary; and
2. (k) discharge such other functions as may be assigned to it under this Act.

1. (2) The State Commission shall advise the State Government on all or any of the following matters, namely :-.
   • (i) promotion of competition, efficiency and economy in activities of the electricity industry;
   • (ii) promotion of investment in electricity industry;
   • (iii) reorganization and restructuring of electricity industry in the State;
   • (iv) matters concerning generation, transmission , distribution and

trading of electricity or any other matter referred to the State Commission by that

Government.

1. (3) The State Commission shall ensure transparency while exercising its powers and discharging its functions.
2. (4) In discharge of its functions the State Commission shall be guided by the National Electricity Policy, National Electricity Plan and tariff policy

published under section 3.

State Advisory