The MSEB, however, has challenged the order of the high court in the Supreme Court where the case is pending.

Chairman of the commission P Subramanyam told The Financial Express that he was briefed on the issue. The matter is, however, yet to be referred to the commission officially, he said.

Subramanyam, former chief secretary of the state, who took charge on Monday said the commission will be fully operational by November. "We have just finalised the office premises and are yet to instal the required infrastructure," he said. The commission will operate from the World Trade Centre office here.

The other members of the three-member commission include Venkat Charyand Jayant Deo. Chary, former additional chief secretary and Deo, professionally a mechanical engineer and consultant to various private projects, took charge last month. Subramanyam, who was still part of government service, had to wait until his retirement on September 15.

The commission has appointed Sunil Porwal secretary. Porwal, also from the Indian Administrative Services, worked as managing director of the Maharashtra Agriculture Food Corporation (Mafco). "We still have to appoint other staff," said Subramanyam, adding that the commission is in favour of hiring experts on contract. This, he said, will reduce the financial burden of the commission.

The Act empowers the commission not only to regulate tariff but also intervene in matters related to power licensees and state-owned companies supplying power.

According to the Act, the commission shall determine the power tariff for wholesale, bulk, grid or retail; and regulate power purchase and procurement process of the transmission utilitiesincluding the price at which the power shall be procured from the generating companies and generation stations.

However, Chapter V of the Act, which deals with the powers and functions of the commission, gives the state government an option to offer certain powers to the body. Some of the important functions under Clause 22 (2) of this chapter include the right to "regulate the investment approval for generation, transmission, distribution and supply of electricity of the entities operating within the state; regulate working of licensees and other persons authorised to engage in the electricity industry in the state and to promote their working in an efficient, economical and equitable manner; and to promote competitiveness and make avenues for participation of private sector in the electricity industry in the state and to ensure a fair deal to the industry".

It is not yet clear if the commission has been given powers under Clause 22. "There are some grey areas regarding the area of work of thecommission which will be clarified soon," said Subramanyam. Apart from the tariff, the commission will immediately take up the issue of strengthening the transmission and distribution network. This also includes the proposed privatisation of T&D system in the state.