The ELECTRICITY REGULATORY COMMISSIONS ACT, 1998
Bihar · state statute
Open in Lexace · Ask the AI about this actTHE ELECTRICITY REGULATORY COMMISSIONS
ACT, 1998
(No. 14 of 1998)
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
CENTRAL ELECTRICITY REGULATORY COMMISSION
3. Establishment and incor poration of Central Commission
4. Qualification for appointme nt of Chairperson and other
Members of the Central Commission.
5. Constitution of Selection Co mmittee to recommend Members
6. Term of office, salary and a llowances and other conditions of
service of Chairperson and Members
7. Removal of Members
8. Officers of the Central Commission and other staff
9. Proceedings of the Central Commission
10. Vacancies, etc., not to inval idate the proceedings of the
Central Commission
11. Expenses of Central Co mmission to be charged upon
Consolidated-Fund of India
12. Powers of the Central Commission
CHAPTER III
POWERS AND FUNCTIONS OF THE CENTRAL COMMISSION
13. Functions of the Central Commission
14. The Central Advisory Committee
15. The Object of the Central Advisory Committee
16. Appeal to High Court in certain cases
CHAPTER IV
STATE ELECTRICITY REGULATORY COMMISSION
17. Establishment and incorporation of State Commission
18. Constitution of Selection Commi ttee by the State Government.
19. Term of office, salary and a llowances and other conditions of
service of Chairperson and Members
20. Removal of Members
21. Officers of the State Commission and other staff
CHAPTER V
POWERS AND FUNCTIONS OF THE STATE COMMISSION
22. Functions of State Commission
23. Application of certain provisions relating to Central
Commission to State Commissions
24. The State Advisory Committee
25. Objects of the Stat e Advisory Committee
26. Representation before State Commission
27. Appeal to High Court in certain cases
CHAPTER VI
ENERGY TARIFF
28. Determination of tariff by Central Commission
29. Determination of tariff by State Commission
30. Reasons for deviation by the Commissions
CHAPTER VII
ACCOUNTS, AUDIT AND REPORTS
31. Budget of the Central Commission
32. Accounts and audit of Central Commission
33. Budget of the State Commission
34. Accounts and audit of State Commission
35. Annual report of Central Commission
36. Annual report of State Commission
CHAPTER VIII
MISCELLANEOUS
37. Transparency in Commissions
38. Directions by Central Government
39. Directions by State Government
40. Members, officers and employ ees of Central Commission to be
public servants
41. Special provision relating to the Orissa ElectricityReform Act,
1995 or Haryana State Electricity
Reform Act, 1997
42. Proceedings before the Commission
43. Protection of action taken in good faith
44. Punishment for non-compliance of orders or directions under
the Act
45. Punishment for non-compliance of directions given by a
Commission
46. Power of seizure
47. Offence by companies
48. Cognizance of offences
49. Inconsistency in laws
50. Delegation
51. Amendment of Act 54 of 1948
52. Overriding effect
53. Power to give directions
54. Power of Central Government to make rules
55. Power of Central Commi ssion to make regulations
56. Rules and regulations to be laid before Parliament
57. Power of State Government to make rules
58. Power of State Commissi on to make regulations
59. Rules and regulations to be laid before State Legislature
60. Power to remove difficulties
61. Repeal and Saving
THE ELECTRICITY REGULATORY COMMISSIONS
ACT, 1998
(No. 14 of 1998)1
[2nd July 1998]
1. PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SEC. 1 DATED 2ND JULY, 1998 (W.E.F. 25TH APRIL, 1998).
An Act to provide for the establishm ent of a Central El ectricity Regulatory
Commission and State Electricity Regulatory Commissions, rationalization
of electricity tariff, transparent polic ies regarding subsidies, promotion of
efficient and environmentally beni gn policies and matters connected
therewith or incidental thereto.
Be it enacted by Parliament in the Fort y-ninth Year of the republic of India
as follows:
STATEMENT OF OBJECTS AND REASONS
India's power sector is beset by problems that impede its capacity to
respond to the rapidly growing demand for energy brought about by
economic liberalisation. Despite the stated desire for reform and the initial
measures that have been implemented, serious problems persist. As the
problems of the Power Sector deepen, reform becomes increasingly
difficult underscoring the need to act dec isively and without delay. It is
essential that the Government exit implement significant reforms by
focussing on the fundamental issues faci ng the power sector, namely the
lack of rational retail tariffs, the high level of cross-subsidies, poor planning
and operation, inadequate capacity, t he neglect of the consumer, the
limited involvement of private sector skills and resources and the absence
of an independent regulat ory authority, Consid ering the paramount
importance of restructure power sect or, Government of India organised
two Conferences of Chie Ministers to discuss the whole gamut of issues in
the power sector and the outcome of these meeti ngs was the adoption of
the Common Minimum National Action Plan for Power (CMNPP).
2. The CMNPP recognised that the gap between dem and and supply of
power is widening and a cknowledged that the financia l position of State
Electricity Boards is fast deteriora ting and the future development in the
power sector cannot be su stained without vi able State Electricity Boards
and improvement of their operational performance. The CMNPP identified
creation of regulatory Commission as a step in this direction and
specifically provided for establishment of the Central Electricity Regulatory
Commission (CERC) and State Electr icity Regulatory commissions
(SERCs). After the finalisation of the, national a genda contained in
CMNPP, the Ministry of Power a ssigned the task of studying the
restructuring needs of the regulatory system to Administrative Staff
College of India (ASCI), Hyder abad. The ASCI report strongly
recommended the creation of inde pendent Electricit y Regulatory
Commissions both at the Centre and the States.
3. To give effect to the aforesai d proposals, the Elec tricity Regulatory
Commissions Bill. 1997 was introduced in the Lok Sabha on 14th August,
1997, However it could not be pass ed due to the disso lution of the
Eleventh Lok Sabha. This has resulted in delay in establishing the
Regulatory Commissions leading to c onfusion and misgiv ings in various
sections about the commitment of t he Government to the reforms and
restructuring of the power sector. Needless to say, this has also slowed
down the flow of public and private inve stment in power se ctor. Since it
was considered necessary to ensure the speedy establishment of the
Regulatory Commissions and as Parliament was not in session, the
President promulgated the Electricity Regulatory Commissions Ordinance,
1998 on 25th day of April, 1998.
4. The salient features of the -said Ordinance are as follows: -
(a) It provides for the establishment of a Central Electricity Regulatory
Commission at the Central level and State Electricity Commissions
at the State levels-,
(b) The main functions of CERC are: -
(i) To regulate the tariff of generating companies owned or
controlled by the Central Government;
(ii) To regulate inter-State transmission including tariff of the
transmission utilities;
(iii) To regulate inter-State sale of power;
(iv) To aid and advise the Central Government in the formulation
of tariff policy.
(c) The main functions of the SERC, to start with, shall be: -
(i) To determine the tariff for elec tricity, wholesale, bulk, grid
and retail;
(ii) To determine the tariff pay able for use of the transmission
facilities;
(iii) To regulate power purchase the procurem ent process of the
transmission utilities; and
(iv) Subsequently, as and when eac h State Government notifies,
other regulatory functions could also be assigned to SERCS.
(d) It also aims at improving the fina ncial health of the State Electricity
Boards (SEBS) which ar e loosing heavily on account of irrational
tariffs and lack of budgetary support from the State Governments
as a result of which, the SEBs have become incapable of even
proper maintenance, leave alone purposive investment. Further,
the lack of creditworthiness of SEBs has been a deterrent in
attracting investment both from t he public and private sectors.
Hence, it is made mandatory for St ate Commissions to fix tariff in a
manner that none of the consumers or class of consumers shall be
charged less than fifty per cent. of the average cost of supply, it
enables the State Governments to ex ercise the option of providing
subsidies to weaker sections on condition that the state
Governments through a subsidy compensate the SEBS. As
regards the agriculture sector, it provides that if the State
Commission considers it necessary it may allow the consumers in
the agricultural sector to be charged less than fifty per cent, for a
maximum period of three years from the date of commencement of
the Ordinance. It also empowers t he State Government to reduce
the tariff further but in that case it shall compensate the SEBs or its
successor utility, the different betw een the tariff fixed by the State
Commission and the tariff proposed by the State Government by
providing budgetary allocations. T herefore, it enables the State
Governments to fix any tariff fo r agriculture and other sectors
provided it gives subsidy to State Electricity Boards to meet the
loss.
5. The Bill seeks to replace the said Ordinance.
1
1. PUBLISHED IN THE GAZETT E OF INDIA, EXTRAORDINARY
PT.II, SEC. 2D DATED 3RD JUNE, 1998.
CHAPTER I
PRELIMINARY
1. SHORT TITLE, EXTENT AND COMMENCEMENT. -
(l) The Act may be called the Elec tricity Regulatory Commissions Act,
1998.
(2) It extends to the whole of Indi a except the State of Jammu and
Kashmir.
(3) It shall be deemed to have come into force on the 25th day of April,
1998.
2. DEFINITIONS. - In this Act, unless the context otherwise requires,-
(a) “Central Commission” means the Central Electricity Regulatory
Commission established under sub-section (1) of Sec. 3;
(b) “Chairperson” means the C hairperson of the Commission;
(c) “Commission” means the C entral Commission or the State
Commission as the case may be;
(d) High Court means, -
(i) The High Court within the juri sdiction of which the aggrieved
party ordinarily resides or ca rries on business or personally
works for gain; and
(ii) Where the Central Governm ent is the aggrieved party, the
High Court within the jurisdicti on of which the respondent, or
in a case where are more than one respondent, any of the
respondents ordinarily resides or carries on business or
personally works for gain;
(e) “Inter-State transmission” includes-
(i) The conveyance of energy by means of a main transmission
line from the territory of one St ate to the terr itory of another
State;
(ii) The conveyance of energy across the territory of an
intervening State as well as conveyance withi n the State,
which is incidental to such inter-State transmission of
energy;
(iii) The transmission of energy within the territory on a system
built, owned, operated, maintai ned or controlled by a central
transmission utility or by any person under the supervision
and control of a central transmission utility;
(f) “Licensee” means a person licens ed under Part II of the Indian
Electricity Act, 19 10 to suppl y energy or a person who has
obtained sanction under Sec. 28 of that Act to engage in the
business of supplying energy (but does not include the Board or a
Generating company);
(g) “Member” means the Member of the Commission and includes the
Chairperson but does not include a Member, ex-officio;
(h) “Prescribed” means prescribed by rules made under this Act;
(i) “Regulations” means regulations made under this Act;
(j) “State Commission” means t he State Electricity Regulatory
Commission established under sub-section (1) of Sec. 17;
(k) “Transmission utility” means any Generating Company, Board,
licensee or other person engaged in the transmission of energy;
(l) “Utility” means any person or entity engaged in the generation,
transmission, sale, distribution or supply, as the case may be, of
energy;
(m) Words and expressions used and not defined in this Act but defined
in the Electricity (Supply) Ac t, 1948 (54 of 1948) or the Indian
Electricity Act, 1910 (9 of 1910) shall have the meanings
respectively assigned to them in those Acts.
CHAPTER II
CENTRAL ELECTRICITY REGULATORY COMMISSION
3. ESTABLISMMNT AND INCORPORATION OF CENTRAL COMMISSION.
-
(l) The Central Government, shall, within three months from the date
of the commencement of this Act by notification in the Official
Gazette, establish a body to be k nown as the Central Electricity
Regulatory Commission to exercise the powers conferred on, and
the functions assigned to, it under this Act.
(2) The Central Commission shall be a body corporate by the name
aforesaid, having perpetual su ccession and a common seal with
power to acquire, hold and dispose of property, both movable and
immovable, and to contract and shall, by the said name, sue or be
sued.
(3) The head office of the Central Commission shall be at such place
as the Central Government may, by notification in the Official
Gazette, specify.
(4) The Central Commission shall c onsist of the following Members,
namely: -
(a) A Chairperson and three other Members;
(b) The Chairman of the Central Electricity Authority appointed
under sub-section (3) of Sec. 3 of the Electricity (Supply)
Act, 1948 (54 of 1948), who shall be the Member, ex-offtcio.
(5) The Chairperson and the ot her Members of the Central
Commission shall be appointed by t he Central Government on the
recommendation of the Selection Committee referred to in Sec. 5:
Provided that nothing contained in this sub-section shall apply to
the appointment of a person as the Chairperson, where such
person is or has been a Judge of t he, Supreme Court or the Chief
Justice of a High Court.
4. QUALIFICATION FOR APP OINTMENT OF CHAIRPERSON AND
OTHER MEMBERS OF THE CENTRAL COMIMSSION. -
(1) The Chairperson and the Member s of the Central Commission shall
be persons having adequate knowl edge, experience or shown
capacity in dealing wit h problems relating to engineering, law,
economics, commerce, finance or management and shall be
appointed in the following manner, namely: -
(a) One person having qualificat ion and experience in the field
of engineering with specialisation in generation, transmission
or distribution of electricity;
(b) One person having qualificat ion and experience in the field
of finance; and
(c) Two persons havin g qualification and exper ience in the field
of economics, commerce, law or management
Provided that not more than one Member shall be appointed
under the same category under Cl. (c).
(2) Notwithstanding anything contained in sub-section (1), the Central
Government may appoint any pers on as the Chairperson from
amongst persons who is or has been a Judge of the Supreme
Court or the Chief Justice of a High Court:
Provided that no appointment under this sub-section shall be made
except after consultation with the Chief Justice of India.
(3) The Chairperson or any other Member of the Central Commission
shall not hold any other office.
(4) The Chairperson shall be the Chief Executive of the Central
Commission.
5. CONSTITUTION OF SELEC TION COMMITTEE TO RECOMMEND
MEMBERS. -
(1) The Central Government shall, for the purpose of sub-section (5) of
Sec. 3, constitute a Selection Committee consisting of-
(a) Member of the Pl anning Commission in charge of the energy
section
--
Chairperson;
(b) Secretary-in-charge of t he Ministry of the Central
Government dealing with the Department of Le al Affairs
--Member;
(c) Chairman of the Public Enterprises Select ion Board
-Member;
(d) A person to be nominated by the Central Government in
accordance with sub-section (2)
-Member;
(e) A person to be nominated by the Central Government in
accordance with sub-section (3)
--Member;
(f) Secretary-in-charge of t he Ministry of the Central
Government dealing with Power;
-Member.
(2) For the purposes of Cl. (d) of subsection (1), the Central
Government shall nominate from amongst persons holding the post
of Chairman or Managing Director, by whatever name called, of any
public financial institution specifi ed in Sec. 4-A of the Companies
Act, 1956 (I of 1956).
(3) For the purposes of Cl. (e) of sub-section (1), the Central
Government shall nominate from amongst persons holding the post
of Director or the head of the institut ion, by whatever name called,
of any research, technical or m anagement institution notified by the
Central Government in the Official Gazette for this purpose.
(4) Secretary-in-charge of the Ministry of the Central Government
dealing with Power shall be Conveners of the Selection Committee.
(5) The Central Government shall within one month from the date of
occurrence of any vacancy by r eason of death, resignation or
removal of the Chairperson or a Member and six months before the
superannuation or end of tenure of any Chai rperson or Member,
make a reference to the Selection Committee for filling up of the
vacancy.
(6) The Selection Committee sha ll finalise the selection of the
Chairperson and Members within one month from the date on
which the reference is made to it.
(7) The Selection Committee sha ll recommend a panel of two names
for every vacancy referred to it.
(8) Before recommending arty person for appointment as a
Chairperson or other Member of the Central Commission, the
Selection Committee shall satisfy it self that such person does not
have any financial or other interest, which is likely to affect
prejudicially his functions as a Member.
(9) No appointment of the Chairp erson or other Me mber shall be
invalid merely by reason of any vacancy in the Selection Committee
6. TERM OF OFFICE, SALA RY AND ALLOWANCES AND OTHER
CONDITIONS OF SERVICE OF CHAIRPERSON AND MEMBERS. -
(l) The Chairperson or other Member shall hold office as such for a
term of five years from the date on which he enters upon his office,
but shall not be eligible for re-appointment:
Provided that no Chairperson or ot her Member shall hold office as
such after he has attained, -
(a) In the case of the Chairpers on, the age of sixty-five years,
and
(b) In the case of any other Me mber, the age of sixty-two years.
(2) The salary and allowances pay able to and the other terms and
conditions of service of the Chai rperson and other Members shall
be such as may be prescribed.
(3) The salary, allowances and other conditions of service of the
Chairperson and the Members shall not be varied to their
disadvantage after appointment.
(4) The Chairperson and every Member shall before entering upon his
office, make and subscribe to, an oat h of office and of secrecy in
such form and in such manner and before such authority as may be
prescribed.
(5) Notwithstanding anyth ing contained in sub-section (1), Chairperson
or any Member may-
(a) Relinquish his office by givi ng in writing to the President
notice of not less than three months; or
(b) Be removed from his office in accordance with the provisions
of Sec. 7.
(6) The Chairperson or any Member ceasing to hold office as such
shall-
(a) Be ineligible for further employment under the Central
Government or any State Gove rnment for a period of two
years from the date he ceased to hold such office;
(b) Not accept any commercial employment for a period of two
years from the date he ceased to hold such office;
(c) Not represent any person bef ore the Central Commission or
a State Commission in any manner.
Explanation-For the purposes of this sub-section, -
(i) “Employment under the C entral Government or under
the State Government” in cludes employment under
any local or other authority within the territory of India
or under the control of t he Central Government or
State Government or under any corporation or society
owned or controlled by the Government;
(ii) “Commercial employment ” means employment in any
capacity under, or agency of, a person engaged in
trading, commercial, industrial or financial business in
the electricity industry and incl udes also a director of
a company or partner of a firm and it also includes
setting up practice either i ndependently or as partner
of a firm or as an adviser or a consultant.
7. REMOVAL OF MEMBERS. –
(1) Subject to the provisions of sub- section (3), any Member of the
Central Commission shall only be re moved from his office by order
of the President on the ground of proved misbehaviour after the
Supreme Court, on reference being made to it by the President,
has, on an inquiry, held in a ccordance with the procedure
prescribed in that behalf by the Supreme Court, reported that the
Member, ought on any such ground to be removed.
(2) The President may suspend any Member of the Central
Commission in respect of whom a reference has been made to the
Supreme Court under sub-section (1) until the President has
passed an order on receipt of the report of the Supreme Court.
(3) Notwithstanding anything cont ained in sub-section (1), the
President may by order remove from office the Chairperson or any
other Member, if the Chairperson or such other Member, as the
case may be, -
(a) Has been adjudged an insolvent; or
(b) Has been convicted of an offenc e which, in the opinion of the
Central Government, involves moral turpitude; or
(c) Has become physically or mentally incapable of acting as a
Member; or
(d) Has acquired such financial or other interest as is likely to
affect prejudicially his functions as a Member; or
(e) Has so abused his position as to render his continuance in
office prejudicial to the public interest.
(4) Notwithstanding anyth ing contained in sub-section (3), no Member
shall be removed from his office on the ground specified in Cl. (d)
or Cl. (e) of that sub-secti on unless the Supreme Court, on a
reference being made to it in th is behalf by the President, has, on
an enquiry, held by it in accordance with such procedure as
prescribed in this behalf by the Supreme Court, reported that the
Member ought on such ground or grounds to be removed.
8. OFFICERS OF THE CENTRA L COMMSSION AND OTHER STAFF. -
(1) The Central Commission may appoint a Secretary to exercise and
perform under the control of the Chairperson such duties and
powers as may be specified by r egulations made by the Central
Commission.
(2) The Central Commission may, with the approval of the Central
Government, determine the number, nature and categories of other
officers and employees required to assist the Central Commission
in the discharge of its functions.
(3) The salaries and allowances pay able to and other conditions of
service of the Secretary, offi cers and other employees shall be
such as may be determined with th e approval of the Central
Government by regulations.
(4) The Central Commission may appoint consultants required to assist
the Central Commission in the disc harge of its functions on terms
and conditions as may be determined by regulations made by the
Central Commission.
9. PROCEEDINGS OF THE CENTRAL COMMISSION. -
(1) The Central Commission shall meet at the head office or any of its
offices at such times as the C hairperson may direct, and shall
observe such rules of procedure in regard to the transaction of
business at its meetings (including the quorum at its meetings) as
may be determined by regulations.
(2) The Chairperson or, if he is unable to attend a meeting of the
Central Commission, any other Member nominated by the
Chairperson in this behalf and, in the absence of such nomination
or where there is no Chairper son, any Member chosen by the
Members present from among themselves, shall preside at the
meeting.
(3) All questions which come up bef ore any meeting of the Central
Commission shall be decided by a majority of votes of the Members
(including the Member ex-offtcio ) present and voting, and in the
event of an equality of votes, the Chairperson or the person
presiding shall have the right to exercise a second or casting vote.
(4) Save as otherwise provided in s ub-section (3), every Member of the
Board shall have one vote.
(5) All orders and decisions of the Central Commission shall be
authenticated by the Secretary or any other officer of the Central
Commission duly authorised by the Chairperson in this behalf.
10. VACANCIES ETC., NOT TO INAV ALIDATE, THE PROCEEDINGS OF
CENTRAL COMMISSION.- No act or proceedings of the Central
Commission shall be questioned or shall be invalidated merely on the
ground of existence of any vacancy or defect in the constitution of the
Central Commission.
11. EXPENSES OF CENTRAL COMMISSI ON TO BE CHARGED UPON
CONSOLIDATED FUND OF INDIA. - The expenses of the Central
Commission including all salaries and allowances payable to, or in respect
of, the Chairperson and the Member s of the Central Commission shall be
charged upon the Consolidated Fund of India.
12. POWERS OF THE CENTRAL COMMISSION. - The Central Commission
shall, for the purposes of any inquiry or proceedings under this Act have
the powers as are vested in a Civil Court under the Code of Civil
Procedure, 1908 (5 of 1908) in respect of the following matters, namely, -
(a) The summoning and enforcing of attendance of any witness and
examining him on oath;
(b) The discovery and production of any document or other material
object producible as evidence;
(c) The reception of evidence on affidavits;
(d) The requisition of any public record;
(e) The issue of commission fo r examination of witnesses;
(f) Review its decisions , directions and orders;
(g) Any other matter, which may be prescribed.
CHAPTER III
POWERS AND FUNCTIONS OF THE CENTRAL COMMISSION
13. PUNCTIONS OF THE CENTRAL COMMISSION . -The Central
Commission shall discharge all or any of the following functions, namely: -
(a) To regulate the tariff of Gener ating Companies owned or controlled
by the Central Government;
(b) To regulate the tariff of G enerating Companies, other than those
owned or controlled by the Central Government specified in Cl. (a),
if such Generating Companies enter into or otherwise have a
composite scheme for generation and sa le of electricity in more
than one State-,
(c) To regulate the inter-State transmi ssion of energy including tariff of
the transmission utilities;
(d) To promote competition, effici ency and economy in the activities of
the electricity industry;
(e) To aid and advise the Central Gove rnment in the formulation of tariff
policy which shall be, -
(i) Fair to the consumers; and
(ii) Facilitate mobilisation of adequate resources for the power
sector;
(f) To associate with the environm ental regulatory agencies to develop
appropriate policies and procedures for environmental regulation of
the power sector;
(g) To frame guidelines in matte rs relating to electricity tariff,
(h) To arbitrate or adjudicate upo n disputes involving Generating
Companies or transmission utilities in regard to matters connected
with Cls. (a) to (c) above;
(i) To aid and advise the Central Government on any other matter
referred to the Central Commission by that Government.
14. THE CENTRAL ADVI SORY COMMITTEE. -
(1) The Central Commission may, by not ification, establish with effect
from such date as it may specify in such notification. a Committee
to be known as the Central Advisory Committee,.
(2) The Central Advisory Committee shall consist of riot more than
thirty-one members to represent the interests of commerce,
industry, transport, agricultu re, labour, consumers, non-
governmental organisations arid academic and research bodies in
the energy sector.
(3) The Chairperson and Members of the Central Commission shall be
ex-officio Chairperson and ex-offtc io Members of the Central
Advisory Committee.
15. THE OBJECT OF THE CENTRAL ADVISORY COMMITTEE -The objects
of the Central Advisory Committee shall be to advise the Central
Commission on, -
(i) Major questions of policy;
(ii) Matters relating to quality, cont inuity and extent of service provided
by the licensees;
(iii) Compliance by licensees with the conditions and requirements of
their licence:
(iv) Protection of c onsumer interest: and
(v) Energy supply and overall standar ds of performance by utilities.
16. APPFAL TO HIGH COURT IN CERTAIN CASES. -
(1) Any person aggrieved by any decis ion or order of the Central
Commission may file an appeal to the High Court.
(2) Except as aforesaid, no appeal or revision shall lie to any Court
from any decision or order of the Central Commission.
(3) Every appeal under this section shall be preferred within sixty days
from the date of communication of the decision or order of the
Central Commission to the person aggrieved by the said decision
or order:
Provided that the High Court may entertain an appeal after the
expiry of the said period of sixty days if it is satisfied that the
aggrieved person has sufficient caus e for not preferring the appeal
within the said period of sixty days.
CHAPTER IV
STATE ELECTRICITY REGULATORY COMMISSION
17. ESTABLISHMENT AND INCORPORATION OF STATE COMMISSION. -
(1) The State Government may, if it deems fit, by notification in the
Official Gazette, establish, for the purposes of this Act, a
Commission for the State to be know n as the (name of the State)
Electricity Regulatory Commission.
(2) The State Commission shall be a body corporate by the name
aforesaid, having perpetual succession and a common seal, with
power to acquire, hold and dispose of property, both movable and
immovable, and to contract and shall, by the said name, sue or be
sued.
(3) The head office of the State Co mmission shall be at such place as
the State Government may, by notif ication in the Official Gazette,
specify.
(4) The State Commission shall consist of not more than three
Members including the Chairperson.
(5) The Chairperson and the Members of the State Commission shall
be persons of ability, integrit y and standing who have adequate
knowledge of, and have shown capac ity in dealing with problems
relating to engineering, finance, commerce, economics, law or
management.
(6) The Chairperson and the Members of the State Commission shall
be appointed by the State Government on the recommendation of a
Selection Committee referred to in Sec. 18.
(7) Notwithstanding anything contained in sub-section (5) or subsection
(6), the State Government may appoint any person as the
Chairperson from amongst persons who is or has been a Judge of
a High Court:
Provided that no appointment under this sub-section shall be made
except after consultation with the Chief Justice of that High Court.
(8) The Chairperson shall be the chief executive of the State
Commission.
(9) The Chairperson or any other Member of the State Commission
shall not hold any other office.
18. CONSTITUTION OF SELECTION COMMITEE BY THE STATE
GOVERNMENT. -
(1) The State Government shall, for the purposes of selecting the
Members of the State Electricity Commission, constitute a Selection
Committee consisting of,-
(a) A person who has been a Judge of the High Court;
-Chairperson
(b) The Chief Secretary of the concerned State; -Member;
(c) The Chairperson or a member of the Central Electricity
Regulatory Authority.
-Member:
Provided that nothing contained in this clause shall apply to the
appointment of a person as the C hairperson who is or has been a
Judge of the High Court.
(2) No appointment of a Member shall be invalid merely by reason of
any vacancy in the Selection Committee.
(3) The State Government shall wi thin one month from the date of
occurrence of any vacancy by r eason of death, resignation or
removal and six months before the superannuation or end of tenure
of any Chairperson or a Member, make a reference to the Selection
Committee for filling up of the vacancy.
(4) The Selection Committee sha ll finalise the selection of the
Members within one month from the date on wh ich the reference is
made to it.
(5) The Selection Committee sha ll recommend a panel of two names
for every vacancy referred to it.
(6) Before recommending any person for appointment as a Member,
the Selection Committee shall satisf y itself that such person does
not have any financial or other intere st, which is likely to affect
prejudicially his functions as a Member.
19. TERM OF OFFICE, SALA RY AND ALLOWANCES AND OTHER
CONDITIONS OF SERVICE CHAIRPERSON AND MEMBERS. –
(1) The Chairperson or other Member shall hold office as such for a
term of five years from the date on which he enters upon his office,
but shall not be eligible for re-appointment:
Provided that no Chairperson or ot her Member shall hold office as
such after he has attained, -
(a) In the case of the Chairpers on, the age of sixty-five years,
and
(b) In the case of any other Me mber, the age of sixty-two years.
(2) The salary and allowances pay able to and the other terms and
conditions of service of the Members of, the State Commission
shall be such as may be prescribed by the State Government.
(3) The salary, allowances and other conditions of service of the
Members, shall not be varied to their disadvantage after
appointment.
(4) Every Member of the State Co mmission shall, before entering upon
his office, make and subscribe to, an oath of office and of secrecy
in such form and in such manner and before such authority as may
be prescribed.
(5) Notwithstanding anything contained in sub-section (1) or subsection
(2), a Member may-
(a) Relinquish his office by givi ng in writing to the Governor
notice of not less than three months; or
(b) Be removed from his office in accordance with the provisions
of Sec. 20.
(6) Any Member ceasing to hold office as such shall-
(a) Be ineligible for further employment under the Central
Government or any State Gove rnment for a period of two
years from the date he ceased to hold such office;
(b) Not accept any commercial employment for a period of two
years from the date he ceased to hold such office,
(c) Not represent any person bef ore the Central Commission or
State Commission in any manner.
Explanation-For the purposes of this sub-section, -
(i) “Employment under the C entral Government or under
the State Government” in cludes employment under
any local or other authority within the territory of India
or under the control of the Central Government or a
State Government or under any corporation or society
owned or controlled by the Government;
(ii) “Commercial employment ” means employment in any
capacity under, or agen cy of, a person engaged in
trading, commercial, industrial or financial business in
the electricity industry and incl udes also a director of
a company or partner of a firm and it also includes
setting up practice either i ndependently or as partner
of a firm or as an adviser or a consultant.
20. REMOVAL OF MEMBERS. –
(1) Subject to the provisions of sub-section (3), any Member of the
State Commission shall only be remov ed from his office by order of
the Governor on the ground of pr oved misbehaviour after the High
Court, on reference being made to it by the Governor, has, on
inquiry held in accordance with t he procedure pres cribed in that
behalf by the High Court, reported that the Member, ought on any
such ground to be removed.
(2) The Governor may suspend any Member of the State Commission
in respect of whom a referenc e has been made to the High Court
under subsection (1) until the Gove rnor has passed orders on the
receipt of the report of the High Court on such reference.
(3) Notwithstanding anything cont ained in sub-section (1), the
Governor may by order remove from office the Member if he-
(a) Has been adjudged an insolvent; or
(b) Has been convicted of an offenc e which, in the opinion of the
State Government, involves moral turpitude; or
(c) Has become physically or mentally incapable of acting as a
Member; or
(d) Has acquired such fin ancial or other interest as is likely to affect
prejudicially his functions as a Member; or
(e) Has so abused his position as to render his continuance in office
prejudicial to the public interest.
(4) Notwithstanding anyth ing contained in sub-section (3), no Member
shall be removed from his office on the ground specified in Cl. (d)
or Cl. (e) of that sub-section unl ess the High Court on a reference
being made to it in this behalf by the Governor, has, on an enquiry,
held by it in accordance with such procedure as prescribed in this
behalf by the High Court, reported that the Member ought on such
ground or grounds to be removed.
21. OFFICERS OF THE STATE COMMISSION AND OTHER STAFF. -
(1) The State Commission may appoint a Secretary to exercise and
perform under the control of the Chairperson such duties and
powers as may be specified by regulations made by the State
Commission.
(2) The State Commission may, wit h the approval of the State
Government, determine the number, nature and categories of other
officers and employees required to assist the State Commission in
the discharge of its functions.
(3) The salaries and allowances pay able to and other conditions of
service of the Secretary, offi cers and other employees shall be
such as may be determined by regulat ions with the ap proval of the
State Government.
(4) The State Commission may appoint consultants required to assist
the State Commission in the discharge of its functions on terms and
conditions as may be determined by regulations by the State
Commission.
CHAPTER V
POV%TERS AND FUNCTIONS OF THE STATE COMMISSION
22. FUNCTIONS OF STATE COMMISSION . –
(1) Subject to the provisions of Chapter III, the State Commission shall
discharge the following functions, namely:-
(a) To determine the tariff for electr icity, wholesale, bulk, grid or
retail, as the case may be, in the manner provided in Sec.
29,
(b) To determine the tariff payable for use of transmission
facilities in the manner provided in Sec. 29;
(c) To regulate power purchase an d procurement process of the
transmission utilities and distribu tion utilities including the
price at which the power shall be procured from the
Generating Companies, generating stations or from other
sources for transmission, sale, distribution and supply in the
State;
(d) To promote competition, efficiency and economy in the
activities of the electricity industry to achieve the objects and
purposes of this Act.
(2) Subject to the provisions of C hapter III and without prejudice to the
provisions of sub-section (1), the State Government, may by
notification in the Official Gazette, confer any of the following
functions upon the State Commission, namely: -
(a) To regulate the investm ent approval for generation,
transmission, distribution and s upply of electricity to the
entities operating within the State;
(b) To aid and advise the State Government, in matters
concerning electricity generatio n, transmission, distribution
and supply in the State;
(c) To regulate the operation of the power system within the
State;
(d) To issue licences for trans mission, bulk supply, distribution
or supply of electricity and determine the conditions to be
included in the licences,
(e) To regulate the working of the licensees and other persons
authorised or permitted to engage in the electricity industry
in the State and to promote their work ing in an efficient,
economical and equitable manner;
(d) To require licensees to formulate perspective plans and
schemes in co-ordination with others for the promotion of
generation, transmission, distri bution, supply and utilisation
of electricity, quality of se rvice and to devise proper power
purchase and procurement process;
(g) To set standards for the el ectricity industry in the State
including standards relating to quality, continuity and
reliability of service;
(h) To promote competitiveness and make avenues for
participation of private sector in the electricity industry in the
State, and also to ensure a fair deal to the customers;
(i) To lay down and enforce safety standards;
(j) To aid and advise the State Government in the formulation
of the State power policy;
(k) To collect and record info rmation concerning the generation,
transmission, distribution and ut ilisation of electricity; to
collect and publish data and forecasts on the demand for,
and use of, electricity in the State and to require the
licensees to collect and publish such data;
(m) To regulate the assets, properti es and interest in properties
concerning or related to the el ectricity industry in the State
including the conditions governing entry into, and exit from,
the electricity industry in such manner as to safeguard the
public interest;
(n) To adjudicate upon the dis putes and differences between
the licensees and utilities and to refer the matter for
arbitration;
(o) To co-ordinate with environm ental regulatory agencies and
to evolve policies and procedures for appropriate
environmental regulations of the electricity sector and utilities
in the State; and
(p) To aid and advise the State Government on any other matter
referred to the State Commission by such Government.
(3) The State Commission shall exercise its functions in conformity
with the national power plan.
23. APPLICATION OF CERTAIN PROVISIONS RELATING TO CENTRAL
COMMISION TO STATE COMMISSIONS. - The provisions of Sees. 9, 10
and 12 shall apply to a St ate Commission and shall have effect, subject to
the following modifications, namely: -
(a) References to “Central Commission” shall be construed as
references to “State Commission”;
(b) In sub-section (3) of Sec. 9, the brackets and words “(including the
Member ex-offtcio)” shall be omitted.
24. THE STATE ADVISORY COMMITTEE. –
(1) The State Commission may, by notification, est ablish with effect
from such date as it may specify in such notification, a Committee
to be known as the State Advisory Committee.
(2) The State Advisory Committee shall consist of not more than
twenty-one members to represent the interests of commerce,
industry, transport, agricultu re, labour, consumers, non-
governmental organisations and ac ademic and research bodies in
the energy sector.
(3) The Chairperson and the Members of the State Commission shall
be ex-officio Chairperson and ex-o fficio Members of the State
Advisory Committee.
25. OBJECTS OF THE STATE ADVISORY COMMITEE. - The objects of the
State Committee shall be to advise the Commission on-
(i) Major questions of policy;
(ii) Matters relating to quality, cont inuity and extent of service provided
by the licensees;
(iii) Compliance by licensees with the conditions and requirements of
their licence;
(iv) Protection of consumer interest; and
(v) Energy supply and overall standar ds of performance by utilities.
26. REPRESENTATION BE FORE STATE COMMISSION. - The State
Commission shall authorise any person as it deems fit to represent the
interest of the consumers in all the proceedings before it.
27. APPEAL TO HIGH COURT IN CERTAIN CASES Excerpt shown. Open the full act in Lexace.