As part of big ticket reforms in the power sector, the government has proposed to fast track appointment of power sector regulators both at central and state levels by forming permanent standing selection committees presided by Chief Justice of High Court of the state that would oversee and clear all appointments based on merit.
The proposal is expected to remove delays in appointments of power sector regulators. Such delays are disastrous for the functioning of the power sector as the absence of regulators results in power tariff not being revised for years resulting in financial stress for discoms and the states.
Officials in power ministry said that to prevent such a situation, it had now been proposed that a standing selection committee would be set up in each state exclusively for appointment that would be headed by Chief Justice of High Court while having equal members from both Centre and state. Selection of members and chairperson of State Electricity Regulatory Commission (SERCs) would be done by a panel formed by the state government while selections for Central Electricity Regulatory Commission (CERC) would continue to be carried out by the Centre.
Power and Renewable Energy Minister R.K. Singh had earlier proposed single Standing selection committee presided by sitting Supreme Court judge and members from both centre and states to do appointment for both SERCs and CERC. This was also proposed in the Draft Electricity (Amendment) Bill, 2020.