The Govt. of India had enacted the Electricity
Regulatory Commissions Act, 1998 (No.14 of 1998) on 2nd July, 1998 with
the objective of providing for the establishment of a Central
Electricity Regulatory Commission and State Electricity Regulatory
Commissions, rationalisation of electricity tariff, transparent policies
regarding subsidies, promotion of efficient and environmentally benign
policies and for matters connected therewith or incidental thereto.