Tariff regulations
Section 61 of the Electricity Act, 2003 deals with tariff regulations. The Appropriate Commission shall, subject to the provisions of this Act, specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following, namely:-- (a) the principles and methodologies specified by the Central Commission for determination of the ta The Act came into force on 10 Jun 2003.
The Appropriate Commission shall, subject to the provisions of this Act, specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following, namely:--
(a) the principles and methodologies specified by the Central Commission for determination of the tariff applicable to generating companies and transmission licensees;
(b) the generation, transmission, distribution and supply of electricity are conducted on commercial principles;
(c) the factors which would encourage competition, efficiency, economical use of the resources, good performance and optimum investments;
(d) safeguarding of consumers' interest and at the same time, recovery of the cost of electricity in a reasonable manner;
(e) the principles rewarding efficiency in performance;
(f) multi year tariff principles;
1 [(g) that the tariff progressively reflects the cost of supply of electricity and also, reduces cross-subsidies in the manner specified by the Appropriate Commission;]
(h) the promotion of co-generation and generation of electricity from renewable sources of energy;
(i) the National Electricity Policy and tariff policy:
Provided that the terms and conditions for determination of tariff under the Electricity (Supply) Act, 1948 (54 of 1948), the Electricity Regulatory Commission Act, 1998 (14 of 1998) and the enactments specified in the Schedule as they stood immediately before the appointed date, shall continue to apply for a period of one year or until the terms and conditions for tariff are specified under this section, whichever is earlier.
Section 61, 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.
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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Vidarbha Industries Power Limited vs Axis Bank Limited
Court's Decision & Legal Precedent
Section 7(5)(a) of the Insolvency and Bankruptcy Code 2016 confers discretionary power on the Adjudicating Authority (NCLT) to admit or reject an application for Corporate Insolvency Resolution Process filed by a financial creditor, even when default is established and the application is complete. The NCLT must apply its mind to relevant factors including the feasibility of initiating CIRP against the corporate debtor, the impact of pending regulatory appeals and awards, and the overall financial health and viability of the corporate debtor under its existing management. The existence of a financial debt and default in payment thereof only gives the financial creditor the right to apply for initiation of CIRP; it does not mandate automatic admission. The NCLT may exercise its discretion to keep the admission of the application in abeyance or reject it if the corporate debtor demonstrates that a substantial award or decree in its favor is pending, which if realized would exceed the debt claimed by the financial creditor.
On this section: State Electricity Regulatory Commission determines tariff chargeable by electricity generating companies
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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: Cited as source of RERC power to frame regulations including renewable energy promotion
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
9 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
- Uttar Pradesh Electricity Regulatory Commission (Modalities of Tariff Determination) Regulations, 2023Regulation 2023
- 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
- 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
- CSERC (Terms and Conditions for Determination of Tariff) Regulations, 2006.Regulation 2006
Another 6 instruments name this provision in its title or its text without being made under it.
- Uttar Pradesh Electricity Regulatory Commission (Procedure, Terms & Conditions for grant of Trading License for Intrastate Electricity Trader and other related Provisions) Regulations, 2005Regulation 2025
- The Himachal Pradesh Electricity Regulatory Commission (Authorized Consumer Representative) Regulations, 2016Regulation 2016
- JERC Notification dated 15.12.2010Notification 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
- Chhattisgarh State Electricity Regulatory Commission (Licence) Regulations, 2004. Dt. 07.12.2004Regulation 2004
- The Himachal Pradesh Electricity Regulatory Commission (General Conditions of Trading Licence) Regulations, 2004Regulation 2004
Questions about Section 61
What have the courts held on Section 61 of the Electricity Act?
Vidarbha Industries Power Limited vs Axis Bank Limited (12 Jul 2022) is the leading judgment on this section among those set out below: State Electricity Regulatory Commission determines tariff chargeable by electricity generating companies. Another 1 judgment on this section is set out below, all of them from the Supreme Court. They run from 2015 to 2022.
How do I find court cases under Section 61 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 61, section 61 Electricity Act 2003, section 61 of the Electricity Act. People searching for it also type electricity act 2003 section 61. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Vidarbha Industries Power Limited vs Axis Bank Limited (12 Jul 2022).
What should I read with Section 61 of the Electricity Act, and has it changed?
2 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 9: most recently UPERC (MYT for Transmission) Regulations 2025 (2025), then Uttar Pradesh Electricity Regulatory Commission Multi Year Tariff for Distribution Regulations, 2025 (2025), and 7 more.
When did Section 61 of the Electricity Act come into force?
Section 61 of the Electricity Act, cited as Electricity Act 2003 61, 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
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.