Union power minister PR Kumaramangalam told the house that he would move two official amendments to the bill. But it could be done only at the time of its consideration under rules, he said. These two amendments relate to the removal of sub-section (1) of clause 17 and sub-section (3) of clause 29 of the bill.After heated arguments, he assured the members that the bill was within the house's legislative competence, and the amendments could be moved only at the consideration stage.

The bill provides for establishing acentral electricity regulatory commission at the apex level and state electricity regulatory commissions at the state level besides rationalisation of electricity tariffs and transparent policies on subsidies. The bill seeks to replace an ordinance on the subject.

Kumaramangalam also laid on the table of the house an explanatory statement showing reasons for immediate legislation by the electricity regulatory commissions ordinance, 1998.

Responding to the opposition's criticism over the bill, the minister said that although the proposed amendments could be moved at the consideration stage, the option to implement or not was being left to the states. At the same time, the states should also be prepared to face the consequences.

CERC's main functions will be to regulate the tariffs of generating companies owned or controlled by the Centre, to regulate inter-state transmission including tariff of transmission utilities, to regulate inter-state sale of power and to aid and advise the government intariff-policy formation.

On the other hand, SERC's functions will be to determine the tariffs for electricity wholesale, bulk, grid and retail, to determine tariff payable for use of transmission facilities, to regulate the power purchase and procurement process of transmission utilities and subsequently, other regulatory functions could also be assigned to SERCs.