The Gujarat Electricity Board (GEB) was constituted under Section-5 of the Electricity Supply Act-1948 to perform the functions of Generation, Transmission & Distribution of Electricity. The State Electricity Board (GEB) of Gujarat is one of the better performers as compared to other State Electricity Boards. In spite of these achievements, the State has been facing severe shortage of electricity, faced financial crunch and has high level of subsidies. For these reasons, the State has initiated the Power Sector Reforms. The acceptance of the Gujarat Electricity Industry (Reorganization and Regulation) Bill, 2003 by the State Assembly of Gujarat was the first step forward towards unbundling, making Gujarat the first State to unbundle the SEB after enactment of Electricity Act 2003.

The Gujarat Electricity Regulatory Commission was constituted on 12th November, 1998 under provisions of Electricity Regulatory Commissions Act, 1998.The function of commission as stated under the section 86 of electricity act 2003 and its acting chairman is Shri Anand Kumar These entities come under GERC Regulation that is power utilities and state load dispatch centre, power utilities are following types: