Andhra Pradesh Electricity Regulatory Commission

Establishment and constitution of the Commission.

3. (1) For the purposes of this Act, within three months of the Act coming into force, the State Government shall establish by notification a Commission to be known as the Andhra Pradesh Electricity Regulatory Commission, which shall be a body corporate with perpetual succession and a common seal with power to acquire and hold property, movable and immovable, and shall, by the said name, be entitled to sue and be sued.

(2) The Commission shall consist of a Chairman and two members to be appointed by the State Government from persons selected by the selection committee constituted for the purpose, in the manner provided in section 4 of this Act. The State Government shall specifically designate one of the three members as the Chairman. The inter-se-seniority of the other two members shall be indicated in the orders of appointment.

(3) When the Chairman of the Commission is unable to discharge the functions owing to absence, illness or any other cause, the next senior member of the Commission shall discharge the functions of the Chairman, until the day on which the Chairman assumes office.

Constitution of the selection /committee to select members

4. (1) The State Government shall expeditiously constitute a selection committee, as often as may be required to select persons for appointment as members of the commission, which shall consist of the following, namely;

(i) a retired Chief Justice of any High Court or a retired judge of the Supreme Court. -- Chairman

(ii) Chief Secretary to the Government of Andhra Pradesh

-- Member

(iii) the Chairman of the Central Electricity Authority -- Member

(2) The Secretary in-charge of the Energy Department, Government of Andhra Pradesh shall be the Convenor for the above Selection Committee.

(3) The selection committee shall call for nominations from general public and from professional bodies, consumer organisations by giving wide publicity, so as to act expeditiously and shall generally finalise the selection within a period of three months to enable the State Government to make the final selection and appointment in time for the new member to take charge at the expiry of the term of the retiring member:

Provided that the selection of the members shall not be restricted to the nominations received.

(4) The selection committee shall submit the panel of two suitable persons for each vacancy in the Commission who have such qualification and experience as provided in the Act, to the State Government in alphabetical order from among whom the State Government shall appoint one of the two as a member of the Commission.

(5) All decisions of the selection committee shall be by majority

(6) The method and manner of the selection and appointment of members and designation of one of the members as Chairman of the Commission shall be as prescribed by the State Government.

Conditions for appointment as member of the Commission.

5. (1) The members of the Commission shall be persons of ability, integrity and standing who have adequate knowledge or experience of, or have shown capacity in dealing with problems relating to engineering, economics, commerce, finance, accountancy, law or administration and that at all times the selection and appointment shall be made in accordance with the qualifications and experience specified below:-

(i) one member shall be a graduate electrical engineer with adequate experience in generation or transmission or distribution of electricity;

(ii) two members shall have graduate qualification with specialisation and adequate experience in any of the disciplines like law, economics, commerce, finance, accountancy or administration:

Provided that at any point of time the Commission shall not consist of more than one member from the same discipline:

Provided further that persons below the age of fifty five years shall not be eligible for appointment as chairman or member, as the case may be.

(2) A person shall be disqualified from being appointed a member of the Commission if he is a member of Parliament or of any State Legislative Assembly or any local authority or holds any post in a political party or if he has any financial or other interest, directly or indirectly, in any private company or undertaking dealing with any of the business referred to in clause (a) of sub-section (3) subject to the conditions specified in sub-section (5)

(3) The persons who are considered for appointment as members of the Commission shall intimate the convenor of the selection committee,-

(a) of any office, employment or consultancy agreement or arrangement which he has in his own name or in any firm, association of persons or body corporate, or in the names of any relative, carrying on any of the following businesses, namely:-

(i) generation, transmission, distribution or supply of electricity;

(ii) manufacture, sale or supply of any fuel for generation of electricity;

(iii) manufacture, sale, lease, hire or otherwise; supply of or dealing in machinery, plant, equipment, apparatus or fittings for the generation, transmission, distribution, supply or use of electricity; and

(iv) any entity providing professional services to any of the businesses referred to in sub-clauses (i), (ii) and (iii) above;

(b) such other details and information as may be prescribed in the rules.

Explanation:- For the purpose of this section the term relative shall have the same meaning as defined under section 6 of the Companies Act, 1956.

Central Act 1 of 1956.

(4) The details received from the persons shall be placed for consideration of the selection committee at the time of selection and recommendation of the person for appointment as member.

(5) Each member of the Commission shall, before taking charge of the office as member or within such time not exceeding three months after taking charge as may be allowed by the State Government on the recommendation of the selection committee, divest himself from the interest in the businesses mentioned in sub-section (3) of this section as a condition of his appointment.

(6) If a person to be appointed as a member of the Commission holds any office under the State or Central Government or any public sector corporation or any Government body, he shall submit his resignation or take voluntary retirement from that service and shall not seek reappointment in the service of the State Government or any Government corporation or body dealing with the power sector in Andhra Pradesh at any time with in a period of two years after he ceases to be a member of the Commission.

(7) So long as the person holds the office of the member and for a period of two years after he ceases to be a member for any reason whatsoever, he shall not acquire, hold or maintain, directly or indirectly any office, employment or consultancy arrangement or businesses mentioned in sub-section (3) of this section within or outside the State and if he acquires any such interest involuntarily or by way of succession or testamentary disposition he will divest himself from such interest within a period of three months of such interest being acquired.

(8) Before recommending any person as a member of the Commission, the selection committee shall satisfy itself that the person does not have any financial or other interest as referred to in sub-section (3) or otherwise which is likely to affect prejudicially his functions as a member.

Term of office, conditions of service, etc., of members.

6. (1) Every member shall hold office for a period of five years from the date of his appointment as member or until the age of sixty-five years, whichever is earlier and he shall not be eligible for re-appointment at any time after the expiry of his term of appointment:

Provided that a member shall be eligible for appointment as Chairman subject to his combined tenure in the Commission as Member and Chairman shall not exceed five years:

Provided further that the first three members shall be appointed for varying periods of three years, four years and five years respectively so as to avoid the retirement of all the members at the same time and ensure continuity in the functioning of the Commission:

Provided also that no person shall be appointed as member after he has attained the age of sixty two years so that he has a minimum tenure of three years as member.

(2) The Chairman of the Commission and other members shall receive such remuneration and other allowances as may be prescribed from time to time under the rules:

Provided that the terms shall not be varied to their disadvantage during the tenure of the appointment.

(3) The Chairman of the Commission and every other member shall before entering upon his office, make and subscribe to an oath of office and of secrecy in such form, in such manner and before such authority as may be prescribed.

Removal of Members

7. (1) The State Government may remove from office any member of the Commission in accordance with sub-section (2), who,-

(a) has been adjudged as un-discharged insolvent; or

(b) has been convicted of an offence involving moral turpitude; or

(d) has without reasonable cause refused or failed to discharge his functions for a period of at least three months; or

(e) ceases to fulfill any of the conditions of his appointment as member; or

(f) has acquired such financial or other interest that can affect prejudicially his functions as a member; or

(g) has conducted himself in a manner or has so abused his position as to render his continuance in office prejudicial to the public interest or to the objects and purpose of the Act.

(2) Except where a member admits the charge, in writing, no member

of the Commission shall be removed from his office on the grounds specified in clauses (c), (d), (e), (f) and (g) of sub-section (1) until a sitting judge of the High Court of Andhra Pradesh, as recommended by the Chief Justice of the High Court at the relevant time, has carried out an enquiry and has forwarded a report to the State Government.

(3) The State Government shall act in accordance with the recommendation in the final report under sub-section (2) and the State Government shall communicate its decision to the member concerned within a period of two months of the receipt of such report.

(4) A member who has been removed shall not be eligible for re-appointment as a member or in any other capacity in the Commission or in the State Government or in any state Government undertakings.

(5) If the member removed under this section is the Chairman of the Commission, he shall cease to be the Chairman of the Commission.

(6) The vacancy caused by the removal of the member shall be filled in the same manner as provided for the appointment of a member or designation of the Chairman of the Commission.

Appointment of the Secretary, Staff and Consultants of the Commission.

8. (1) The Commission shall appoint a person as Secretary of the Commission to assist the Commission to discharge its functions

(2) The Commission shall, in consultation with the State Government determine the number, nature and categories of other officers and employees required to assist the Commission in the discharge of its functions.

(3) The salaries and allowances payable to the members and the administrative expenses, including salaries, allowances and pensions payable to or in respect of the Secretary, officers and other employees of the Commission, shall be charged to the Consolidated Fund of the State;

(4) The method and manner of selection of the Secretary, officers and other employees and the terms and conditions of their service may be prescribed by the Commission by regulations with prior approval of State Government.

(5) The Commission shall be entitled to appoint, from time to time consultants required to assist the Commission in the discharge of its functions on terms and conditions to be decided by the Commission.

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