The Central Electricity Regulatory Commission (CERC) is a key statutory body established under the Electricity Act, 2003, with significantly expanded responsibilities beyond its initial tariff fixation powers under the ERC Act, 1998. CERC is mandated to regulate tariffs for generating companies, inter-State transmission and trading of electricity, issue licenses, and adjudicate disputes. It also specifies Grid Code, enforces service quality standards, and fixes trading margins for inter-State electricity trading.
Additionally, CERC plays an advisory role to the Central Government on the formulation of National Electricity Policy and Tariff Policy, promoting competition, efficiency, economy, and investment in the electricity industry. The Commission is actively involved in adapting to the evolving power sector in India by developing an appropriate regulatory framework to mobilize investments and foster electricity markets.