General powers of the Government. 12. (1)

In the discharge of its functions, the Commission shall be guided by such directions in matters of policy involving public interest as the Government may issue from time to time.


If any question arises as to whether any such direction relates to a matter of policy involving public interest, the decision of the Government thereon shall be final.


The Government shall be entitled to issue policy directions concerning any subsidy to be allowed for supply of electricity or any other infrastructure services to any class or classes of persons;

Provided that the Government shall contribute an amount to compensate the Board or any company affected to the extent of the subsidy granted. The Commission shall determine such amounts, the terms and conditions on which and the time within which such amounts are to be paid by the Government.


The Government shall consult the Commission in relation to any proposed legislation or rules concerning any policy direction and may take into account the recommendations made by the Commission.

Authorising the Commission to discharge functions of Commission in respect of other Union territory. 13.

The Government may, if so required to do by the Central Government, authorise the Commission to discharge the functions of Electricity Regulatory Commission in respect of any other Union territory.

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