Power Sector reforms in India were initiated with the ultimate objective of restoring reliability of the power industry, promote competition and efficiency, create an environment conducive to private investment, and facilitate sustainable development of the power sector. With the initiation of the reform process, it was considered essential that the sector be regulated by independent institutions. This led to the introduction of Regulatory Commissions at the Central and State levels through the introduction of the Electricity Regulatory Commissions Act 1998.Thus the enactment of the Electricity Act 2003 strengthened the role of Regulatory Commissions and provided for competition and efficiency in the power sector, quality of supply at reasonable prices to the consumers, promotion of non-conventional sources of energy and power market development.