Extracts from the Electricity Act 2003

Section 2(64) "State Commission" means the State Electricity Regulatory Commission constituted under sub-section (1) of section 82 and includes a Joint Commission constituted under sub-section (1) of section 83;

Section 82. (1) Every State Government shall, within six months from the appointed date, by notification, constitute for the purposes of this Act, a Commission for the State to be known as the (name of the State) Electricity Regulatory Commission: Provided that the State Electricity Regulatory Commission, established by a State Government under section 17 of the Electricity Regulatory Commissions Act, 1998 and the enactments specified in the Schedule, and functioning as such immediately before the appointed date shall be the State Commission for the purposes of this Act and the Chairperson, Members, Secretary, and other officers and other employees thereof shall continue to hold office, on the same terms and conditions on which they were appointed under those Acts. Provided further that the Chairperson and other Members of the State Commission appointed before the commencement of this Act under the Electricity Regulatory Commissions Act, 1998 or under the enactments specified in the Schedule, may on the recommendations of the Selection Committee constituted under sub-section (1) of Section 85 be allowed to opt for the terms and conditions under this Act by the concerned State Government.

(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 Commission shall be at such place as the State Government may, by notification, specify.

(4)

The State Commission shall consist of not more than three Members, including the Chairperson.

(5)

The Chairperson and Members of the State Commission shall be appointed by the State Government on the recommendation of a Selection Committee referred to in section 85.

Section 83. (1) Notwithstanding anything to the contrary contained in section 82, a Joint Commission may be constituted by an agreement to be entered into -

(a)

by two or more Governments of States; or

(b)

by the Central Government, in respect of one or more Union territories, and one or more Governments of States, and shall be in force for such period and shall be subject to renewal for each further period, if any, as may be stipulated in the agreement: Provided that the Joint Commission, constituted under section 21 A of Electricity Regulatory Commissions Act, 1998 and functioning as such immediately before the appointed day, shall be the Joint Commission for the purposes of this Act and the Chairperson, members, Secretary and other officers and employees thereof shall be deemed to have been appointed as such under this Act and they shall continue to hold

office, on the same terms and conditions on which they were appointed under the Electricity Regulatory Commissions Act, 1998.

(2)

The Joint Commission shall consists of 1 Member from each of the participating States and Union Territories and the Chairperson shall be appointed from amongst the Members by consensus, failing which by rotation.

(3)

An agreement under sub-section (1) shall contain provisions as to the name of the Joint Commission, the manner in which the participating States may be associated in the selection of the Chairperson and Members of the Joint Commission, manner of appointment of Members and appointment of Chairperson by rotation or consensus, places at which the Commission shall sit, apportionment among the participating States of the expenditure in connection with the Joint Commission, manner in which the differences of opinion between the Joint Commission and the State Government concerned would be resolved and may also contain such other supplemental, incidental and consequential provisions not inconsistent with this Act as may be deemed necessary or expedient for giving effect to the agreement.

(4)

The Joint Commission shall determine tariff in respect of the participating States or Union Territories separately and independently.

(5)

Notwithstanding anything contained in this section, the Central Government may, if so authorised by all the participating States, constitute a Joint Commission and may exercise the powers in respect of all or any of the matters specified under sub-section (3) and specifically so authorized by the participating States.

Section 84. (1) The Chairperson and the Members of the State Commission shall be persons of ability, integrity and standing who have adequate knowledge of, and have shown capacity in, dealing with problems relating to engineering, finance, commerce, economics, law or management.

(2)

Notwithstanding anything contained in sub-section (1), 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 exceptafter consultation with the Chief Justice of that High Court.

(3)

The Chairperson or any other Member of the State Commissionshall not hold any other office.

(4)

The Chairperson shall be the Chief Executive of the State Commission.

Section 85. (1) The State Government shall, for the purposes of selecting the Members of the State 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 of the Authority or the Chairperson of the Central Commission .. Member: Provided that nothing contained in this section shall apply to the appointment of a person as the Chairperson who is or has been a Judge of the High Court.

(2)

The State Government shall, within one month from the date of occurrence of any vacancy by reason of death, resignation or removal of the Chairperson or a Member and six months before the superannuation or end of tenure of the Chairperson or Member, make a reference to the Selection Committee for filling up of the vacancy.

(3)

The Selection Committee shall finalise the selection of the Chairperson and Members within three month from the date on which the reference is made to it.

(4)

The Selection Committee shall recommend a panel of two names for every vacancy referred to it.

(5)

Before recommending any person for appointment as the Chairperson or other Member of the State Commission, the Selection Committee shall satisfy itself that such person does not have any financial or other interest which is likely to affect prejudicially his functions as Chairperson or Member, as the case may be.

(6)

No appointment of Chairperson or other Member shall be invalid merely by reason of any vacancy in the Selection Committee. Section 85. (1) The State Government shall, for the purposes of selecting the Members of the State 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 of the Authority or the Chairperson of the Central Commission .. Member: Provided that nothing contained in this section shall apply to the appointment of a person as the Chairperson who is or has been a Judge of the High Court.

(2)

The State Government shall, within one month from the date of occurrence of any vacancy by reason of death, resignation or removal of the Chairperson or a Member and six months before the superannuation or end of tenure of the Chairperson or Member, make a reference to the Selection Committee for filling up of the vacancy.

(3)

The Selection Committee shall finalise the selection of the Chairperson and Members within three month from the date on which the reference is made to it.

(4)

The Selection Committee shall recommend a panel of two names for every vacancy referred to it.

(5)

Before recommending any person for appointment as the Chairperson or other Member of the State Commission, the Selection Committee shall satisfy itself that such person does not have any financial or other interest which is likely to affect prejudicially his functions as Chairperson or Member, as the case may be.

(6)

No appointment of Chairperson or other Member shall be invalid merely by reason of any vacancy in the Selection Committee.

Section 86. (1) The State Commission shall discharge the following functions, namely: -

(a)

determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State: Providing that where open access has been permitted to a category of consumers under section 42, the State Commission shall determine only the wheeling charges and surcharge thereon, if any, for the said category of consumers;

(b)

regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from the generating companies or licensees or from other sources through agreements for purchase of power for distribution and supply within the State;

(c)

facilitate intra-state transmission and wheeling of electricity;

(d)

issue licences to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State;

(e)

promote congenration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licencee;

(f)

adjudicate upon the disputes between the licensees, and generating companies and to refer any dispute for arbitration;

(g)

levy fee for the purposes of this Act;

(h)

specify State Grid Code consistent with the Grid Code specified under clause (h) of subsection (1) of section 79;

(i)

specify or enforce standards with respect to quality, continuity and reliability of service by licensees;

(j)

fix the trading margin in the intra-State trading of electricity, if considered, necessary; and

(k)

discharge such other functions as may be assigned to it under this Act.

(2)

The State Commission shall advise the State Government on all or any of the following matters, namely :-.

(i)

promotion of competition, efficiency and economy in activities of the electricity industry;

(ii)

promotion of investment in electricity industry;

(iii) reorganization and restructuring of electricity industry in the State;

(iv)

matters concerning generation, transmission , distribution and trading of electricity or any other matter referred to the State Commission by that Government.

(3)

The State Commission shall ensure transparency while exercising its powers and discharging its functions.

(4)

In discharge of its functions the State Commission shall be guided by the National Electricity Policy, National Electricity Plan and tariff policy published under section 3. Appropriate Commission Other Provisions Section 89. (1) The Chairperson or other Member shall hold office for a term of five years from the date he enters upon his office; Provided that the Chairperson or other Member in the Central Commission or the State Commission shall not be eligible for re-appointment in the same capacity as the Chairperson or a Member in that Commission in which he had earlier held office as such : Provided further that no Chairperson or Member shall hold office as such after he has attained the age of sixty-five years.

(2)

The salary, allowances and other terms and conditions of service of the Chairperson and Members shall be such as may be prescribed by the Appropriate Government. Provided that the salary, allowances and other terms and conditions of service of the Members, shall not be varied to their disadvantage after appointment.

(3)

Every Member shall, before entering upon his office, make and subscribe to an oath of office and secrecy in such form and in such manner and before such authority as may be prescribed.

(4)

Notwithstanding anything contained in sub-section (1), a Member may-

(a)

Relinquish his office by giving in writing to the Appropriate Government a notice of not less than three months; or

(b)

be removed from his office in accordance with the provisions of section 90.

(5)

Any member ceasing to hold office as such shall

(a)

not accept any commercial employment for a period of two years from the date he ceases to hold such office; and

(b)

not represent any person before the Central Commission or any State Commission in any manner. Explanation. -For the purposes of this sub-section "commercial employment means employment in any capacity in any organisation which has been a party to the proceedings before the Appropriate Commission or employment in any capacity under, or agency of, a person engaged in trading, commercial, industrial or financial business in electricity industry and includes a director of a company or partner of a firm or setting up practice either independently or as partner of a firm or as an advisor or a consultant.

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