This was disclosed by the Karnataka energy secretary Arvind Jadhav here on Tuesday while addressing an interaction meet on `Reforms in the power sector' conducted by the Karnataka Electricity Board.

Jadhav said that the chairman and members of the commission would be appointed by the governor on specific recommendation of an independent selection committee. SERC would have seven divisions to monitor areas like power transmission, distribution, legal, accounts and consumer cell.

Under the regulatory commission, the state government would set up a separate transmission company under the Companies Act 1956 and five or six distribution companies. "However, a decision on the privatisation of these distribution companies is yet to be taken,"he said.

He said the proposed commission would regulate the price of electricity, the efficient management of utilities, level of service given to customers in all aspects and efficient and adequate investments in all areas.

He said the setting up of the Karnataka Power Transmission Corporation (KPTC) would be completed within the next 60 days. KPTC would be the state-run company for undertaking transmission of power. With the commissioning of KPTC, the liabilities of Karnataka Electricity Board would be absorbed by the state government.

The commission would fix the tariffs linked with performance which would improve the efficiency of the transmission and distribution companies. The inefficiency of the distribution companies would not be allowed to be passed on to consumers.

SERC would also set technical and service standards to distribution companies to provide quality supply and better service.