Gujarat's electricity regulator flouts own rules

Appointments against Electricity Act, no legal member since 2006

The Gujarat government has violated regulations in the appointment of a member of the Gujarat Electricity Regulatory Commission (GERC).

The commission does not have any legal representation since 2006 and it now has two finance members against the mandatory one. A selection committee, set up by the state government, has appointed K M Shringarpure for a vacant post of member of GERC. Shringarpure is currently general manager (finance and accounts) with Gujarat Urja Vikas Vikas Nigam Limited, Vadodara, and is joining as member (finance).

GERC already has a member with a finance and accounts background and according to the Section 5 of the Gujarat Electricity Act, “not more than one member shall be appointed having professional knowledge and experience in the same field”.

Of the two members in GERC, M K Aiyer is the member (finance) and has worked as chief general manager (finance and accounts) in Gujarat Energy Transmission Corporation. The other is member (technical) Pravin Patel, recently been appointed the chairman, who has a prior stint in the Central Electricity Authority.  Consumer Education and Research Society, a consumer rights organisation, has flagged the issue with the ministry of power and the state government.

It has requested that the government needs to monitor the biased nominations for SERCs that are quasi-judicial bodies.

“We have been representing before the power ministry and government of Gujarat to appoint a retired high court judge as chairperson of SERCs in India. It may be noted that though there is a provision in Electricity Act to appoint a retired judge as chairperson of SERCs but state governments have started appointing retired IAS officers as chairpersons,” said the letter written by CERS to the ministry of power.

Senior executives of CERS said in order to keep the otherwise independent SERCs under state’s control, the governments put their men as the head of commissions.

The letter also said during the course of hearing, complex issues like determination of tariff, reopening of power purchase agreements and renewable energy obligations are discussed where legal points are raised by renowned advocates. In absence of a judicial expert, the existing members/chairman cut a sorry figure which leads to frequent adjournments. This leads to delay in issuing orders.

“It is regretted that in Gujarat we do not have a retired high court judge or a legal member since 2006. The present commission comprises of chairman from technical and one member from financial field,” said a CERS executive.