TNERC chairperson should not be appointed from TNEB, says consumer body

CHENNAI: A consumer rights organisation has urged the Tamil Nadu government to ensure that serving or retired officials of the erstwhile TNEB are not appointed as the chairperson or members of the Tamil Nadu Electricity Regulatory Commission, arguing that such appointments would create a conflict of interest and undermine the regulator's independence.

In a representation to Energy Resources and Law Minister R Nirmalkumar, Coimbatore Consumer Cause secretary K. Kathirmathiyon said all three posts in the TNERC, including that of the chairperson, are currently vacant, bringing the Commission's functioning to a virtual standstill.

He also pointed out that the post of Director (Engineering) remains vacant and urged the government to constitute the search committee immediately to fill the vacancies.

The representation said TNERC's key positions have, for several years, been occupied by officers on deputation from or retired officials of Tamil Nadu Electricity Board, leading to an apparent as well as actual conflict of interest.

It argued that retired officials continue to receive pensionary benefits from the utility and may find it difficult to take regulatory decisions against their former employer when consumer interests require such action.

The organisation said this situation weakens public confidence in the regulator's independence and claimed that the Commission has, in the past, not been able to effectively regulate or enforce compliance against the electricity licensee, causing hardship to consumers.

Kathirmathiyon said most electricity regulatory commissions in other States do not appoint serving or retired officials of the regulated utility as chairperson, helping preserve their independence and credibility.

The representation suggested appointing the chairperson from among retired High Court judges, senior civil servants or other eminent persons meeting the statutory qualifications. It also recommended appointing technical members from outside the TNEB and TNPDCL establishment to ensure expertise without institutional bias.

Stressing that an independent regulator is vital for consumer protection and improved governance of the power sector, the organisation said the appointments should reflect the government's commitment to transparency, impartiality and accountability.