Chapter V of the act which deals with the powers and functions of the state commission gives the state government an option to offer certain powers to the commission. Some 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."

Thus, if the commission is not given powers in these areas it will not have any say in the matters related to private power projects, including the power purchase commitments made by Maharashtra State Electricity Board to these independent power producers, which have become a serious concern for consumers.

However, the powers conferred by the act directly under clause 22 (1) are very broad and can have different interpretations. For example the clause says the commission shall determine the power tariff for wholesale, bulk, grid or retail; and regulate power purchase and procurement process of the transmission utilities including the price at which powershall be procured from generating companies, generation stations etc. Under this clause the commission actually has powers to fix the tariff of power supplied by IPPs if it so desires. Thus the success of the commission now depends on how it wants to interpret these clauses for asserting its rights. These are the areas where it is feared that the government can have an indirect control on the panel. Apart from this, the financial dependence of the commission on the state too may be a reason for decisions to be unduly influenced. Clearly, it needs to be ensured that the commission is not reduced to a toothless body. Professionals from the industry should be inducted on the board, as suggested by the act.