Report of Indian Institute of Public Administration ... - Ministry of Power

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
Chairperson of the Selection Committee for State Commissions
Since the Chairperson of the Appellate Tribunal is of the rank of a Judge of the
Supreme Court or Chief Justice of the High Court, it may be desirable that the
Selection Committee for the SERC, under Section 85(1)(a), should also be headed by
a retired Judge of the Supreme Court or a retired Chief Justice of the High Court
because it would be odd to have the Chairperson of the Selection Committee being
junior to one of the members, i.e., Chairperson of the Appellate Tribunal.
Second Term for Chairman/Members of Appellate Tribunal
Section 89(1) specifies a 5 years term of Chairperson/Members of the Commission.
However, Section 114 specifies a term of three years for the Chairperson and the
Members of the Appellate Authority. They are eligible for a second term of three
years. One time appointment, with no provision for extension or reappointment or
second term for the Members of the Commission including the Chairman was laid
down to ensure their independence. Once appointed, they do not have to look forward
for a second term. The same logic applies with greater force for appointments in the
Appellate Tribunal. The Chairman or Member should be appointed for a term of 5
years or 6 years at a time with no provision for a second term.
Difference in upper age limit of Chairman and Members of Appellate Tribunal
The upper age limit for the Chairpersons and the Members of the Commission is the
same but not so in the case of Appellate Tribunal. In the case of Appellate Tribunal,
the upper age limit for the Chairperson is 70 years while for the Members it is 65
years. There is no logic for this. Assuming that the higher age of 70 years has been
kept for the Chairperson as retired Judges of the Supreme Court or Chief Justices of
the High Court are likely to be appointed. Since retired Judges can also be appointed
as Members, there is no logic for keeping the upper age limit of the Members lower
than that of the Chairperson.
Capital subsidy
In case the State Government requires any reduction in tariff for supply of electricity
to any consumer as determined by the State Commission under Section 62 of the EA,
2003, , it has to provide subsidy. However, in respect of any such reduction effected
by the State Government in respect of charges specified vide Section 46, 47 and 50 of
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