Chapter II Chapter II

Orissa Electricity Regulatory Commission

Establishment and constitution of the Commission

1. (1) For the purposes of this Act, the State Government shall, within 3 months of the commencement of this Act, establish, by notification, a Commission to be known as the Orissa 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. (2) The Commission shall consist of three members to be appointed by the State Government from persons selected by the selection committee constituted for the purpose.
3. (3) The State Government shall, as per the recommendation of the selection committee, designate one of the members as the Chairman of the Commission but, until such designation, the most senior member of the Commission shall act as Chairman, such seniority being reckoned from the date of joining of the Commission by the members.
4. (4) When the Chairman of the Commission is unable to discharge the functions owing to absence, illness or any other cause, the senior most member of the Commission shall discharge the functions of the Chairman, until the day, on which the Chairman assumes the charge of his functions.
5. (5) No act or proceedings of the Commission shall be invalid by reason only of the existence of any vacancy among its members, or any defect in the constitution thereof.
6. (6) The method and manner of selection and appointment of members of the Commission and designation of one of the members as Chairman shall be such as may be prescribed by rules.

1. (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.
2. (2) The selection committee shall consist of three members, namely:-
   • (a) the Chairman of the Public Service Commission, who shall be the Chairman of the selection committee;
   • (b) the Secretary incharge of the Department of Energy, State Government, who shall be the Convenor of the selection committee; and
   • (c) the Chairman or any member of the Central Electricity Authority designated for the purpose from time to time.
3. (3) The selection committee shall act expeditiously and shall generally finalise the selection within a period of two months to enable the State Government to make the final selection and appointment in time for the new member to take effective charge at the expiry of the term of the retiring member.
4. (4) The selection committee shall select two suitable persons for each vacancy in the Commission who have such qualification and experience as provided in this Act and notify to the State Government of the persons so shortlisted by the selection committee.
5. (5) The decisions of the selection committee shall be by majority.
6. (6) The State Government shall appoint one of the two candidates shortlisted by the selection committee as a member of the Commission.

1. (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, accountancy, law or administration and further that, at all times,-
   • (a) at least one member of the Commission shall be an electrical engineer with experience of generation, transmission, distribution or supply of electricity; and
   • (b) at least one member of the Commission shall have qualification in, and experience of, any of the disciplines of economics, commerce, accountancy, law or administration.
2. (2) The selection and appointment of the members of the Commission shall at all times be made strictly in accordance with the qualification and experience mentioned in this section.
3. (3) A person shall be disqualified from being appointed as a member of the Commission, if he is a member of Parliament or of any State Legislature 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 or the businesses referred to in clause
   • (a) of sub-section (4):
4. (4) The persons who are considered for appointment as members of the Commission shall notify 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:
     • (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 providing services to any of the business referred to in sub-clauses (i),
     • (ii) and
     • (iii) above.
   • (b) Of such other details and information as may be prescribed in the rules.
5. (5) All details received from the persons referred to in sub-section
6. (4) shall be placed for consideration of the selection committee at the time of selection and recommendation of the person for appointment as member of the Commission.
7. (6) Each member of the Commission shall, before taking charge of the office as member divest, himself from the interest in all or any of the businesses mentioned in
8. (4) as a condition of his appointment.
9. (7) If a person to be appointed as a member of the commission holds any office under the State Government or Central Government or in any public sector corporation of 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, the Central Government, any public sector corporation or Government body at any time after he ceases to be a member of the Commission.
10. (8) So long as the person holds the office of a member of the Commission and after he ceases to be a member of the Commission for any reason whatsoever, he shall not acquire, hold or maintain, directly or indirectly any office, employment or consultancy arrangement or business as mentioned in sub-section
11. (4) 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 two months of such interest being acquired.
12. (9) Before appointing any person as a member of the Commission, the State Government shall satisfy itself that the person does not have any financial or other interest as referred to in sub-section (3).

1. (1) Every member of the Commission shall hold office for a period of five years from the date he assumed office and he shall not be eligible for reappointment at any time after the expiry of his term of appointment: Provided that the first three members of the Commission 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 of the Commission at the same time and ensure continuity in the functioning of the Commission: Provided further that no member of the Commission shall be appointed or shall hold office after he has attained the age of sixty-two years.
2. (2) Subject to the provisions in the Schedule, the Chairman of the Commission and other members of the Commission shall receive such remuneration and other allowances and shall be governed by such conditions of service as may be prescribed under the rules.
3. (3) The Chairman of the Commission and every other member of the Commission shall, before entering upon his office, make and subscribe an oath of office and of secrecy in such form, in such manner and before such authority as may be prescribed by rules.

1. (1) The State Government may, after giving an opportunity of being heard, remove from office any member of the Commission, subject to the provisions of sub-section (2), who—
   • (a) has been adjudged insolvent, or
   • (b) has been convicted of an offence involving moral turpitude, or
   • (c) has become physically or mentally incapable of acting as such member, or
   • (d) has without reasonable cause refused or failed to act continuously for a period of three months or more, 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 purposes of the Act—
2. (2) Except where a member admits the charge, in writing, no member of the Commission shall be removed from his office on the ground specified in clauses (c), (d),
   • (f) and
   • (g) of sub-section (1), until a sitting judge of the High Court of Judicature of Orissa, as recommended by the Chief Justice of the High Court at relevant time, has carried out an investigation and submitted a report.
3. (3) The State Government shall communicate its decision to the member concerned within a period of two months of the receipt of the report.
4. (4) A member who has been removed shall not be eligible for reappointment as a member or in any other capacity in the Commission.
5. (5) If the member removed under this section is the Chairman of the Commission, he shall also cease to be the Chairman of the Commission.
6. (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.

1. (1) The Commission shall appoint a person as Secretary of the Commission to assist the Commission to discharge its functions.
2. (2) The Commission shall, with the approval 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.
3. (3) The salaries and allowances payable to members of the Commission 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. (4) The method and manner of selection of the Secretary, officers and other employees of the Commission and the terms and conditions of their service may be prescribed by the Commission by regulations with the previous approval of the State Government.
5. (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.