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.