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Establishment and Constitution of the Commission.

3 (1)

There shall be an Electricity Regulatory   Commission for the National Capital Territory of Delhi to be known as "the Delhi Electricity Regulatory Commission"(hereinafter referred to as "the Commission") to exercise the powers conferred on, and to perform the functions assigned to it under this Ordinance


The Commission shall consist of one or more but not more than three members, including the Chairperson, to be appointed by the Government in the manner provided in section 4, who shall be person or persons, as the case may be, of ability, integrity and standing with knowledge of, and having shown capacity in, dealing with problems relating to administration, engineering, finance, commerce, economics, law or management:

Provided that one member shall always be with adequate experience in generation, transmission or distribution of electricity and, if there are more than one member, the members shall be persons having expertise in different disciplines.


The Commission established and constituted with one member under section 17 of the Central Act shall be the first commission for the purposes of this Ordinance and the member appointed shall be the chairperson of the Commission.


At all times the most senior member of the Commission shall act as Chairperson, such seniority being reckoned from the date of the appointment of the members. In case two or more persons are selected at the same time, the seniority amongst them shall be determined by the Government while making the appointment.


When the Chairperson 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 Chairperson, until the day on which the Chairperson assumes the charge of his functions.


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.


The Commission shall have an official seal for the authentication of documents required for the purposes of its functions.


The Commission may by a general or special order in writing and subject to such conditions as may be specified in the order delegate to any officer of the Commission such of the administrative powers as the Commission considers appropriate to aid and assist the work of the Commission.

Constitution of the selection committee to select members.

4. (1)(a)

The Government shall constitute a selection committee, as often as may be required to select persons for appointment as members. The selection committee shall consist of the following members :-

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A Judge of High Court or a former Judge of High Court.

- Chairperson

Chief Secretary of the Government.

- Member

The Chairman of Central Electricity Regulatory Commission

- Member


The Secretary in charge of the Department of Power of the Government shall act as the convenor of the selection committee.


The selection committee shall finalise the selection within a period of one month from the date on which the reference is made to it.


The selection committee shall recommend a panel of two names for every vacancy referred to it.

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

The Government shall appoint the member from the two names recommended by the selection committee.


The method and manner of selection and appointment of members and designation of one of the members as Chairperson shall be as prescribed by the Government from time to time by the rules.

Conditions for appointment. 5. (1) The persons who are considered for appointment as members of the Commission shall notify to the convenor of the selection committee -
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of any office, employment or consultancy agreement or arrangement which he has in his own name or in any firm, association or person or body corporate, or in the names of any relatives, carrying on any of the following businesses:-
(i) generation, transmission, distribution or supply of electricity;


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 generation, transmission, distribution supply or use of electricity;
(iv) any entity providing professional services to any of the businesses referred to in sub-clauses (i) (ii) and (iii) above and any other business which is notified by the Government on a later date taking into consideration the scope of work of the Commission;


such other details and information as may be prescribed in the rules.
(Central Act 1 of 1956) Explanation for the purpose of this sub-section, the term "relative" shall have the same meaning as defined under section 6 of the Companies Act, 1956.
(2) The details received from the persons shall be placed for consideration of the selection committee at the time of the selection and recommendation of the person for appointment as member.


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 Government on the recommendation of the selection committee, divest himself from the interest in the businesses mentioned in sub-section (1) as a condition of his appointment.
(4) If a person to be appointed as a member of the Commission holds any office under the Government of India or the Government of any State or the Government of any Union territory he shall submit his resignation or take voluntary retirement from that service and shall not seek reappointment in the service of the Government or any Government, corporation or private body, dealing with the power sector for a period of two years after he ceases to be member of the Commission.
(5) 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 interest in businesses mentioned in sub-section (1) and if he acquires any such interest involuntarily or by way of succession or testamentary disposition, he will divest himself of such interest within a period of three months of such interest being acquired.
(6) 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 (1) or otherwise which is likely to affect prejudicially his functions as a member.
(7) A person shall be disqualified from being appointed as member of the Commission if he is a member of Parliament or of the Legislative Assembly of any State or of the Legislative Assembly of any Union territory or of any local authority or holds any post in a political party.

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 no person shall be appointed as a member after he attains the age of sixty two years.


The Chairperson of the Commission and other members shall receive such remunerations and other allowances and shall be governed by such conditions of service 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 Chairperson of the Commission and every other member shall, before entering upon his office, make and subscribe to an oath of the office and of secrecy in such form, in such manner and before such authority, as may be prescribed..
Removal of members. 7. (1) Subject to the provisions of sub-section (3), any member of the Commission shall only be removed from his office by order of the Lieutenant Governor on the ground of proved misbehavior after the High Court, on reference being made to it by the Lieutenant Governor, has, on inquiry held in accordance with the procedure prescribed in that behalf by the High Court, reported that the member ought on any such ground to be removed.
(2) The Lieutenant Governor may suspend any member of the Commission in respect of whom a reference has been made to the High Court under sub-station (1) until the Lieutenant Governor has passed orders on the receipt of the report of the High Court on such reference.
(3) Notwithstanding anything contained in sub-section (1), the Lieutenant Governor may, by order, remove from office the member if he -
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a. has been adjudged an insolvent; or
b. has been convicted of an offence which, in the opinion of the 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; or
f. has without reasonable cause refused or failed to act for a period of at least six months; or
g. ceases to fulfil any of the conditions of his appointment as member.
Notwithstanding anything contained in sub-section (3), no member shall be removed from his office on the ground specified in clause (d) or in clause (e) of that sub-section unless the High Court on a reference being made to it in this behalf by the Lieutenant Governor, has, on an inquiry 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.
The Government shall act in accordance with the recommendation in the final report under sub-section(4) and the Government shall communicate its decision to the member concerned within a period of two months of the receipt of such report.
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 Government or in any Government undertakings.
If the member removed under this section is the Chairperson of the Commission, he shall cease to be the Chairperson of the Commission.

Appointment of the Secretary and staff of the Commission.

8. (1) The Commission, in consultation with the Government, shall appoint a person as Secretary of the Commission to assist the Commission to discharge its functions.
(2) The Commission may, in consultation with the 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 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 in consultation with the Government.
(4) 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 National Capital Territory of Delhi.
(5) The Commission may appoint consultants from time to time to assist the Commission in the discharge of its functions.
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