Don't pick ex-staff from TNEB as TNERC chairperson, urges consumer organisation

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

In a representation to Minister for Energy Resources and Law R Nirmalkumar, Coimbatore Consumer Cause secretary K Kathirmathiyon said all three posts in the TNERC, including 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 contended that the key positions of TNERC have been occupied by officers on deputation from or retired officials of TNEB for several years now, which has led to an apparent and 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.

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

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.

They also suggested appointing a retired High Court judge, a senior civil servant or any other eminent person meeting the statutory qualifications as the chairperson.

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.