Powers of State Commissions to make regulations
Section 181 of the Electricity Act, 2003 deals with powers of State Commissions to make regulations. The State Commissions may, by notification, make regulations consistent with this Act and the rules generally to carry out the provisions of this Act. The Act came into force on 10 Jun 2003.
(1) The State Commissions may, by notification, make regulations consistent with this Act and the rules generally to carry out the provisions of this Act.
(2) In particular and without prejudice to the generality of the power contained in sub-section (1), such regulations may provide for all or any of the following matters, namely:
(a) period to be specified under the first proviso to section 14;
(b) the form and the manner of application under sub-section (1) of section 15;
(c) the manner and particulars of application for licence to be published under sub-section (2) of section 15;
(d) the conditions of licence section 16;
(e) the manner and particulars of notice under clause (a) of sub-section (2) of section 18;
(f) publication of the alterations or amendments to be made in the licence under clause (c) of sub-section (2) of section 18;
(g) levy and collection of fees and charges from generating companies or licensees under sub-section (3) of section 32;
(h) rates, charges and the terms and conditions in respect of intervening transmission facilities under proviso to section 36;
(i) payment of the transmission charges and a surcharge under sub-clause (ii) of clause (d) of sub-section (2) of section 39;
(j) reduction 1*** of surcharge and cross subsidies under second proviso to sub-clause (ii) of clause (d) of sub-section (2) of section 39;
(k) manner and utilisation of payment and surcharge under the fourth proviso to sub-clause (ii) of clause (d) of sub-section (2) of section 39;
(l) payment of the transmission charges and a surcharge under sub-clause (ii) of clause (c) of section 40;
(m) reduction 1*** of surcharge and cross subsidies under second proviso to sub-clause (ii) of clause (c) of section 40;
(n) the manner of payment of surcharge under the fourth proviso to sub-clause (ii) of clause (c) of section 40;
(o) proportion of revenues from other business to be utilised for reducing the transmission and wheeling charges under proviso to section 41;
(p) reduction 1*** of surcharge and cross-subsidies under the third proviso to sub-section (2) of section 42;
(q) payment of additional charges on charges of wheeling under sub-section (4) of section 42;
(r) guidelines under sub-section (5) of section 42;
(s) the time and manner for settlement of grievances under sub-section (7) of section 42;
(t) the period to be specified by the State Commission for the purposes specified under sub-section (1) of section 43;
(u) methods and principles by which charges for electricity shall be fixed under sub-section (2) of section 45;
(v) reasonable security payable to the distribution licensee under sub-section (1) of section 47;
(w) payment of interest on security under sub-section (4) of section 47;
(x) electricity supply code under section 50;
(y) the proportion of revenues from other business to be utilised for reducing wheeling charges under proviso to section 51;
(z) duties of electricity trader under sub-section (2) of section 52;
(za) standards of performance of a licensee or a class of licensees under sub-section (1) of section 57;
(zb) the period within which information to be furnished by the licensee under sub-section (1) of section 59;
2[(zc) the manner of reduction of cross-subsidies under clause (g) of section 61;]
(zd) the terms and conditions for the determination of tariff under section 61;
(ze) details to be furnished by licensee or generating company under sub-section (2) of section 62;
(zf) the methodologies and procedures for calculating the expected revenue from tariff and charges under sub-section (5) of section 62;
(zg) the manner of making an application before the State Commission and the fee payable therefor under sub-section (1) of section 64;
(zh) issue of tariff order with modifications or conditions under sub-section (3) of section 64;
(zi) the manner by which development of market in power including trading specified under section 66;
(zj) the powers and duties of the Secretary of the State Commission under sub-section (1) of section 91;
(zk) the terms and conditions of service of the secretary, officers and other employees of the State Commission under sub-section (2) of section 91;
(zl) rules of procedure for transaction of business under sub-section (1) of section 92;
(zm) minimum information to be maintained by a licensee or the generating company and the manner of such information to be maintained under sub-section (8) of section 128;
(zn) the manner of service and publication of notice under section 130;
(zo) the form of preferring the appeal and the manner in which such form shall be verified and the fee for preferring the appeal under sub-section (1) of section 127;
(zp) any other matter which is to be, or may be, specified.
(3) All regulations made by the State Commission under this Act shall be subject to the condition of previous publication.
Section 181, The Electricity Act, 2003 (Act 36 of 2003).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
- s. 14 Grant of licence
- s. 15 Procedure for grant of licence
- s. 16 Conditions of licence
- s. 18 Amendment of licence
- s. 32 Functions of State Load Despatch Centres
- s. 36 Charges for intervening transmission facilities
- s. 39 State Transmission Utility and functions
- s. 40 Duties of transmission licensees
- s. 41 Other business of transmission licensee
- s. 42 Duties of distribution licensee and open access
- s. 43 Duty to supply on request
- s. 45 Power to recover charges
- s. 47 Power to require security
- s. 50 The Electricity supply code
- s. 51 Other businesses of distribution licensees
- s. 52 Provisions with respect to electricity trader
- s. 57 Standards of performance of licensee
- s. 59 Information with respect to levels of performance
- s. 61 Tariff regulations
- s. 62 Determination of tariff
- s. 64 Procedure for tariff order
- s. 66 Development of market
- s. 91 Secretary, officers and other employees of Appropriate Commission
- s. 92 Proceedings of Appropriate Commission
- s. 127 Appeal to Appellate Authority
- s. 128 Investigation of certain matters
- s. 130 Procedure for issuing directions by Appropriate Commission
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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J. K. Tyre & Industries LTD vs Rajasthan Electricity Regulatory Commn
Court's Decision & Legal Precedent
The Rajasthan Electricity Regulatory Commission has statutory power under Section 86(1)(e) read with Section 181 of the Electricity Act 2003 to impose renewable energy purchase obligations on captive power plants and open access consumers located in the area of distribution licensee, as the term 'total consumption in the area of distribution licensee' includes consumption from all sources within that geographical area. Such obligations, being designed to achieve constitutional mandates under Articles 21, 48A, and 51A(g) of the Constitution and to promote renewable energy as a matter of public policy, do not violate the de-licensing principle of the Act nor do they infringe fundamental rights under Articles 14 or 19(1)(g) of the Constitution. The surcharge imposed for non-compliance is a valid regulatory measure under Section 86(1)(g) and Sections 142, 147 of the Act, representing a compensatory mechanism based on the polluter-pays principle, not an unauthorized tax under Article 265.
On this section: General power of State Commission to frame regulations consistent with Act to carry out its provisions; holds renewable energy regulations
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
40 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- UPERC (MYT for Transmission) Regulations 2025Regulation 2025
- Uttar Pradesh Electricity Regulatory Commission Multi Year Tariff for Distribution Regulations, 2025Regulation 2025
- CSERC (Redressal of Grievances of the Consumers) Regulations, 2023.Regulation 2023
- Uttar Pradesh Electricity Regulatory Commission (Modalities of Tariff Determination) Regulations, 2023Regulation 2023
- Uttar Pradesh Electricity Regulatory Commission Power System Development Fund Regulations, 2023Regulation 2023
- UP Electricity Regulatory Commission (Consumer Grievance Redressal Forum) Regulations, 2022Regulation 2022
- Uttar Pradesh Electricity Regulatory Commission (Facilitation of Telecommunication Network) Regulations, 2022Regulation 2022
- The Himachal Pradesh Electricity Regulatory Commission (Power System Development Fund) Regulations, 2020Regulation 2020
- Delhi Electricity Regulatory Commission (Forum for Redressal of Grievances of the Consumers and Ombudsman) Regulations, 2018Regulation 2018
- JERC Notification dated 26.11.2018Notification 2018
- The Chhattisgarh State Electricity Supply Code (Second Amendment) 2018Order 2018
- Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) Regulations, 2017Regulation 2017
- JERC Notification dated 21.11.2016Notification 2016
- The Himachal Pradesh Electricity Regulatory Commission (Authorized Consumer Representative) Regulations, 2016Regulation 2016
- the Joint Electricity Regulatory Commission (Distribution Code) (First Amendment), Regulations, 2016.Regulation 2016
- JERC Notification dated 22.12.2015Notification 2015
- Joint Electricity Regulatory Commission (Procurement of Renewable Energy) (Second Amendment), Regulations, 2015Regulation 2015
- Standard of Performance Regulations, 2015Regulation 2015
- The Himachal Pradesh Electricity Regulatory Commission (Rooftop Solar PV Grid Interactive Systems based on Net Metering) Regulations, 2015Regulation 2015
- The Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Sharing of Cost of Terminal Benefits of Personnel of the Erstwhile Himachal Pradesh State Electricity Board and Successor Entities) Regulations, 2015Regulation 2015
- Delhi Electricity Regulatory Commission (Demand Side Management) Regulations, 2014Regulation 2014
- Uttar Pradesh Electricity Regulatory Commission (DEMAND SIDE MANAGEMENT) Regulations 2014Regulation 2014
- Chhattisgarh State Electricity Regulatory Commission (Appointment of Consultants) Regulations, 2013.Regulation 2013
- The Himachal Pradesh Electricity Regulatory Commission (Consumer Grievances Redressal Forum and Ombudsman) Regulations, 2013Regulation 2013
- The Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions of Service of Staff) Regulations, 2013Regulation 2013
- Uttar Pradesh Electricity Regulatory Commission Compliance Audit Regulations,2012Regulation 2013
- The Himachal Pradesh Electricity Regulatory Commission (Recovery of Expenditure for Supply of Electricity ) Regulations, 2012Regulation 2012
- JERC Notification dated 11.08.2011Notification 2011
- The Himachal Pradesh Electricity Regulatory Commission (Demand Side Management) Regulations, 2011Regulation 2011
- The Himachal Pradesh Electricity Regulatory Commission (Levy and Collection of Fees and Charges by State Load Despatch Centre) Regulations, 2011Regulation 2011
- The Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Hydro Generation Tariff) Regulations, 2011Regulation 2011
- The Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2011Regulation 2011
- The Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2011Regulation 2011
- JERC Notification dated 11.02.2010Notification 2010
- Joint Electricity Regulatory Commission for the State of Goa and Union Territories (Open Access in Transmission and Distribution) Regulations, 2009Regulation 2010
- The Himachal Pradesh Electricity Regulatory Commission (Distribution Performance Standards) Regulations, 2010Regulation 2010
- The Himachal Pradesh Electricity Regulatory Commission (Grant of Connectivity, Long-term and Medium-term Intra-State Open Access and Related Matters) Regulations, 2010Regulation 2010
- The Himachal Pradesh Electricity Regulatory Commission (Short Term Open Access) Regulations, 2010Regulation 2010
- The Himachal Pradesh Electricity Distribution Code, 2009Regulation 2009
- Chhattisgarh State Electricity Regulatory Commission (Manner of Service and Publication of Notice) Regulations, 2006.Regulation 2007
Questions about Section 181
What have the courts held on Section 181 of the Electricity Act?
J. K. Tyre & Industries LTD vs Rajasthan Electricity Regulatory Commn (13 May 2015) is the leading judgment on this section among those set out below: General power of State Commission to frame regulations consistent with Act to carry out its provisions; holds renewable energy regulations.
How do I find court cases under Section 181 of the Electricity Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Electricity Act 2003 181, section 181 Electricity Act 2003, section 181 of the Electricity Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with J. K. Tyre & Industries LTD vs Rajasthan Electricity Regulatory Commn (13 May 2015).
What should I read with Section 181 of the Electricity Act, and has it changed?
Its own text turns on section 14 (Grant of licence), section 15 (Procedure for grant of licence), section 16 (Conditions of licence), section 18 (Amendment of licence), and on 23 further provisions, so none of them can safely be read on its own. 1 other provision in this corpus refers back to it. The rules and notifications made under it are where it actually bites, and there are 40: most recently UPERC (MYT for Transmission) Regulations 2025 (2025), then Uttar Pradesh Electricity Regulatory Commission Multi Year Tariff for Distribution Regulations, 2025 (2025), and 38 more.
When did Section 181 of the Electricity Act come into force?
Section 181 of the Electricity Act, cited as Electricity Act 2003 181, came into force on 10 Jun 2003, having been enacted on 26 May 2003. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions2388 words
- 135. Theft of Electricity913 words
- 131. Vesting of property of Board in State Government852 words
- 154. Procedure and power of Special Court849 words
- 128. Investigation of certain matters733 words
- 14. Grant of licence636 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.