​​​About U​​s :


Electricity is the single most important input in the developmental process and the progress of any country or State is heavily dependent on the availability of reliable and cost effective power supply. With more and more investments pouring into the State, the restructuring of the power sector has become the need of the hour. Keeping this in mind, the Government of Karnataka has enacted the Karnataka Electricity Reform Act 1999 and has set up the Karnataka Electricity Regulatory Commission (KERC). 


OBJECT​IVES :

      • ​​​To regulate all aspects of the electricity sector in an objective, professional and transparent manner. 
      • To safeguard consumers’ interests. 

      • To ensure reliable, least – cost power supply as a basic input for the economic and social development of the state. ​​​

CONSTITUTION :


KERC has been set up as an autonomous body corporate. It consists of three members, one of whom is nominated as the Chairman and the Chief Executive of the Commission. With its headquarters in Bangalore, the Commission is entitled to conduct its proceedings, consultations and hearings in other places in the State also. ​​​

PROCEEDINGS :
​The Commission has the exclusive power to make regulations for the conduct of its proceedings and discharge of its functions. As a general rule, hearings and proceedings before the Commission are to be held in public. All decisions, directions and orders of the Commission are available for inspection by any person and copies can also be obtained, thereby transparency and objectivity is ensured. ​
POWERS :

​The Commission is vested with the same powers as that of a Civil Court under the Code of Civil Procedure 1908 (Central Act 5 of 1908) for obtaining information and evidence.


The Commission has the power to call any person or undertaking to produce before it documents relating to any matter concerning the generation, transmission, distribution and supply or use of electricity.


The Commission may by order call any person or generating company to furnish any information concerning the activities carried out by such person/company relating to generation, transmission, distribution and supply or use of electricity.


The Commission is entitled to consult such persons or groups of persons who may be affected by its discharge of its functions.


The Commission has the power to act as arbitrator or nominate arbitrators to adjudicate and settle disputes arising between licensees.​

FUNCTIONS :

The Commission is responsible for the discharge of the following functions as per Electricity Act 2003:


(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; 


(c) facilitate intra-state transmission and wheeling of electricity; 


(d) issue licences to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State; 


(e) promote cogeneration 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 electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licence; 


(f) adjudicate upon the disputes between the licensees, and generating companies and to refer any dispute for arbitration; 


(g) levy fee for the purposes of this Act; 


(h) specify State Grid Code consistent with the Grid Code specified under clause (h) of sub-section (1) of section 79; 


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


(j) fix the trading margin in the intra-State trading of electricity, if considered, necessary; and 

​​

(k) discharge such other functions as may be assigned to it under this Act. 


(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. 


(3) The State Commission shall ensure transparency while exercising its powers and discharging its functions. 


(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. ​

​​​