Chapter II MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION

1. (1) There shall be a Commission for the State known as the Madhya Pradesh State Electricity Regulatory Commission which shall be a body corporate with perpetual succession and a common seal and with power to acquire hold and dispose of property, both movable or immovable, and to contract and shall, by the said name sue or be sued.
2. (2) The State Government shall by notification constitute the Commission. The Commission shall consist of a chairperson and two members to be selected and appointed in the manner provided in this Act. The State Government shall designate any of the members as Chairperson. The inter se seniority amongst the two members shall be reckoned from the date of their respective appointment. In case two or more persons are selected at the same time the State Government while making the appointment shall determine the seniority amongst them.
3. (3) The chairperson and members of the Commission shall be appointed whole time to exclusively discharge the functions of the Commission and they shall not hold any other office or undertake any other work.
4. (4) The State Commission constituted by the State Government by notification No. 5726-F-3-20-XIII-98 dated 18.08.1998 issued under sub-section (1) of section 17 of the Central Act and existing on the date of commencement of this Act shall be the first Commission for the purposes of this Act and shall be deemed to have been constituted under this Act for the remaining period of the term of the Chairperson and Members appointed.
5. (5) The headquarters of the Commission shall be at Bhopal, Madhya Pradesh and it may establish offices at other places.

Constitution of Selection Committee to select Chairperson and Members

1. (1) The State Government shall for the purposes of selecting the members of the Commission, constitute a Selection Committee consisting of-
   • (a) the Chief Secretary of the State -Chairman;
   • (b) the chairman of the Central Electricity Authority or in his absence a member nominated by the Chairman of the Central Electricity Authority.-- Member;
   • (c) the Managing Director of a public financial institution as set out in sub-section (1) of section 4A of the Companies Act,1956 (1 of 1956) of the Managing Director of a undertaking owned or controlled by the Government of India engaged in the business of an electricity industry or funding or financing of an electricity industry-Member.
2. (2) The State Government shall, within one month from the date of occurrence of any vacancy in the Commission by reason of death, resignation or removal and four months before the Superannuation or the end of tenure of a member, constitute the Selection Committee as specified in sub-section (1) and make a reference to the Selection Committee for filling up of the vacancy.
3. (3) The Selection Committee shall finalise the selection of the Member, within one month from the date on which the reference is made to it.
4. (4) The Selection Committee shall recommend a panel of two names for every vacancy referred to it.
5. (5) The State Government shall appoint the members from the panel of two names recommended by the Selection Committee for each vacancy and notify its decision within one month of the receipt of such recommendation.

1. (1) The members of the Commission shall be persons of ability, integrity and standing who have adequate knowledge and experience of, or have shown capacity in dealing with problems relating to engineering, economics, commerce, finance, law administration or management and further that at all times the Commission shall consist of :--
   • (a) one person having qualification and adequate experience in the field of engineering with specialisation in generation or transmission, or sub-transmission or distribution of electricity; and
   • (b) the two other persons shall have qualifications and adequate experiences in any of the other disciplines namely, economics, commerce, finance, law, administration or management: Provide that not more than one member shall be appointed under any of the specific disciplines mentioned in clause (b)
2. (2) A person shall be disqualified from being appointed as a member of the Commission if the person is a member of Parliament or of any State Legislature or chairperson or member of any local authority.
3. (3) A person who is considered for appointment as a member of the Commission shall notify the selection committee: --
   • (a) of any office, employment or consultancy agreement or arrangement which the person or his or her relative, has in his or her own name or in any firm, association of person or body corporate, owned or otherwise controlled by any of them carrying on any of the following businesses:--
     • (i) generation, transmission, sub-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, sub-transmission distribution, supply or use of electricity; and
     • (iv) any entity providing any professional service to any of the businesses referred to in clause (i) )
     • (ii) and (iii) above.
   • (b) such other information as may be prescribed by the rules or otherwise by the selection committee. Explanation: For the purpose of this section the term relative shall have the same meaning as assigned to it under section 6 of the Companies Act, 1956 (1 of 1956).
4. (4) Each member of the Commission shall before joining the Commission divest himself from the interest in the business mentioned in sub-section (3) as a condition of his appointment.
5. (5) If a person to be appointed as a member of the Commission holds any office under the State Government or Central Government of any other State or any public sector undertaking or any Government body or is gainfully employed or engaged in service of any other person, Government authority, public or private sector or otherwise, the person shall resign or take voluntary retirement from that service before joining the Commission.
6. (6) A person appointed as a member of the Commission who ceases to be a member for any reason whatsoever shall not, thereafter at any time, be appointed in the service of the State Government or in any body Corporate or institution or undertaking owned or controlled by the State Government.
7. (7) ) A person appointed as a member of the Commission, who ceases to be a member for any reason whatsoever shall not at any time appear or otherwise represent any person before the Commission or appear for or an behalf of the Commission in any proceedings.
8. (8) So long as the person holds the office of the member and for a period two years after he ceases to be a member for any reason whatsoever, the person shall not acquire, hold or maintain, directly or indirectly any office, employment or consultancy arrangement or any financial interest in any of the businesses mentioned in sub-section (3) and if the person acquires any such interest involuntarily or by way of succession or testamentary disposition the person will divest himself from such interest within a period of three months of such interest being acquired.
9. (9) Before recommending any person, the selection committee shall satisfy itself that the person does not have any financial or other interest, which is likely to affect prejudicially his functions as a member:

(1)

1. (1) Every member shall hold office including Chairperson, for a term of five years from the date on which he enters upon his office or until the age of sixty five years, whichever is earlier and shall not be eligible for re-appointment as Chairperson or Member at any time after the expiry of the term of appointment: Providing that no person shall be appointed as member after he has attained the age of sixty two years:
2. (2) The Chairperson and other members shall receive such remuneration and other allowances and shall be governed by such conditions of service as may be prescribe by the rules: Provided that the salary and allowances determined by the State Government for the Chairperson and members shall at no time be inferior to those applicable at the relevant time to the post of Principal Secretary in the State Government. Provided further that the salary, allowances and other conditions of service of the chairperson and members once prescribed shall not be varied to their disadvantage after appointment.
3. (3) The chairperson 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 by the State Government.
4. (4) The chairperson or a member may relinquish his office by giving, in writing to the State Government, notice of not less than three months.

Removal of chairperson or members:

7 .(1) A member of the Commission who-

1. (a) has been adjudged an insolvent, or
2. (b) has been convicted of an offence involving moral turpitude or
3. (c) has become physically or mentally incapable of acting as such member, or
4. (d) has without reasonable cause refused or failed to act for a period of at least three months, or
5. (e) ceases to fulfill any of the conditions of appointment as member, or
6. (u) has acquired such financial or other interest that can affect prejudicially his functions as a member, or
   • (v) has conducted himself in a manner prejudicial to the public interest has so abused the position as to render his continuance in the office prejudicial to the public interest or to the objects and purposes of the Act. may be removed from his office.

1. (2) Except, where a member admits the charge, in writing, he shall not be removed from the office on the ground specified in clause (c), (d), (e), (f), or (g) of sub-section (1) until a sitting judge of the High Court, as recommended by the Chief Justice of the High Court on a reference being made in this behalf by the State Government, has, on an inquiry, held in accordance with such procedure as may be prescribed in this behalf by the High Court, reported that the member ought on such ground or grounds to be removed
2. (3) Pending the inquiry against the member under sub-section (2), the State Government may suspend the member from acting as chairperson or member of the Commission, only if the Chief Justice of the High Court or the judge appointed under sub-section (2) to carry out the inquiry, recommends such suspension.
3. (4) A person who has been removed from the office of chairperson or member of the Commission shall not be eligible for re-appointment in any capacity in the Commission.

Appointment of Secretary, Staff and Consultants of Commission.

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

1. (2) The Commission may, with the prior concurrence of 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 and also the scale of salaries and allowances payable to and the other terms and conditions of the appointment of the secretary, officers and employees of the Commission,
2. (3) The expenses of the Commission including salaries and allowances payable to, or in respect of the chairperson and members of the Commission, the secretary, officers and other employees of the Commission, shall be charged on the consolidated funds of the State.
3. (4) The method and manner of selection of the secretary, officers and other employees of the Commission shall be such as prescribed by the Commission.
4. (5) The Commission may from time to time appoint consultants required to assist the Commission in the discharge of its functions on the terms and conditions as may be prescribed by the Commission.