Contents

1. Letter from the Chairman -

2. The Forum in Brief -

3. Mission Statement -

4. Profile of the Governing Body -

5. The Year in Retrospect -

6. The Agenda for 2000-2001 -

I. Memorandum of Association.

II. Rules and regulations.

III. Auditors Report and Audited Accounts for the year 1999-2000.

IV. Budget for the year 2000-2001.

V. List of Institutional Members and their key functionaries.

Dear Members,

Nothing can give more satisfaction than conceptualising and developing a new Institution. In this sense, my colleagues, on the First Governing Body of the Forum and I, have had the unique satisfaction and privilege of initiating the Forum and its work. We hope that the Forum will facilitate the development of independent regulation in India. The establishment of competent and empowered regulatory institutions is necessary for devising economically efficient and sustainable solutions to the problems of inadequate supply of utility services, low cost recovery, poor efficiencies and inadequate financial viability of utilities. The Forum will seek to serve the country by introducing professionalism and commitment amongst Indian regulators and by invoking strong empathy towards the desperate need for economic growth and development, as preconditions for improving the quality of life and productivity of our countrymen. The Forum enables information-sharing and co-ordination between regulators in the states and also at the centre.

We have received strong and unhesitating support from the Government of India and the State Governments of Member Commissions. We are particularly grateful to His Excellency the President of India, Shri K. R. Narayanan for giving Members the opportunity to call on him at Rashtrapati Bhawan. Shri P. R. Kumaramangalam the Hon'ble Minister of Power, Government of India is popularly known now as the father of Power Reforms in India. The Forum has been fortunate in receiving his unhesitating support. We are grateful to the Hon'ble Minster for encouraging us. The Forum will endeavor to work closely with the government and all other stakeholders to develop a consensus on the approach to power sector reforms.

I must also record the support we have received from the Members of the Forum in making the meetings interactive, useful and productive. At the end of the day a Forum is only as good as its Members. Judging by the proactive support, we have received thus far, the Forum is in good hands.

The Secretariat has functioned under considerable pressure and with only minimal support. I place on record our appreciation of the work done by it in facilitating the functioning of the Forum.

S.L. Rao

The Forum of Indian Regulators was formally registered as a Society under the Societies Registration Act, with the Registrar of Societies in the National Capital Territory of Delhi on February 4, 2000. Schedule-I provides the Memorandum of Association, while Schedule-II provides the Rules and Regulations.

The Orissa Electricity Regulatory Commission (OERC) was the first Regulatory Commission constituted in the electric power sector on November 28, 1996. This was followed by the Central Electricity Regulatory Commission (CERC) which was constituted in August 1998 and the Haryana Electricity Regulatory Commission (HERC) on March 10, 1998. Ten more followed to it thereafter. A need was felt by these regulators for a common platform to discuss emerging issues in regulatory procedures and practices, to evolve common strategies to meet the challenges before regulators in India and to share information and experiences. A meeting was convened of the CERC, OERC and HERC in February, 1999 at New Delhi to discuss the modalities for constituting a suitable forum. The idea quickly found acceptance and as more Regulatory Commissions were constituted, either under State specific Acts, or the Electricity Regulatory Commissions Act, 1998, they started participating in the activities of the Forum of Indian Regulators. The constitution of the Forum does not restrict it only to the electricity sector. However, the membership is so far exclusively of Regulatory Commissions from this sector.

Membership of the Forum is open to any person who is or has been a Member or a Secretary of a Regulatory Commission or Authority established by law or any other organisation connected with public utilities as well as an association of consumers. At the end of March 2000, all the 12 State Electricity Regulatory Commissions (SERCs) in existence, the Central Electricity Regulatory Commission, Infrastructure Development Finance Corporation (IDFC) and Tata Energy Research Institute (TERI) had become Institutional Members.

The Forum relies on membership fees and grants to finance its expenditures. The aim of the Forum is to be financially self-sustaining. Grants when accepted are subject to a clear lack of conflict of interest between the donor and the objectives of the Forum.

The Forum has a Governing Body. Any Fellow Member of the Forum is eligible for appointment to the Governing Body. All members work in an honorary capacity. During the year it comprised the following nominated members:

Hony.Chairman: Professor S.L. Rao, Chairman, CERC

Hony. Senior Vice Chairman: Shri S.C. Mahalik, Chairman, OERC

Hony. Vice Chairman: Shri V.S. Ailawadi, Chairman, HERC

Member: Justice Shacheendra Dwivedi, Chairman MPERC

Member: Justice N.N. Bhattacharjee, Chairman WBERC (Till December 10, 1999)

Member: Shri G.P. Rao, Chairman, APERC

Hony. Secretary: Shri A.R. Ramanathan, Member, CERC

Hony. Treasurer: Shri G.S. Rajamani, Member, CERC.

The Secretariat for the Governing Body is provided by the Central Electricity Regulatory Commission. The Secretary, CERC functions as the Executive Secretary of the Forum, while the Assistant Secretary, CERC functions as Executive Treasurer of the Forum. There is also a provision for three Joint Secretaries representing each of the Eastern, Southern and Western Regions. The secretariat works in an honorary capacity. During the year the Secretariat was staffed by:

Hony. Executive Secretary: Shri Sanjeev S Ahluwalia, Secretary, CERC

Hony. Executive Treasurer: Shri R.S. Bisht, Assistant Secretary, CERC

Hony. Joint Secretary, East: Vacant.

Hony. Joint Secretary, South: Vacant

Hony. Joint Secretary, West: Vacant.

Promote the growth of independent regulatory mechanisms.

Promote transparency in the working of the regulatory bodies.

Protect consumer interest and develop consumer advocacy organisations.

Develop human and institutional capacities in regulatory bodies, utilities and other stakeholders.

Research the efficiency and effectiveness of independent regulation and matters incidental thereto.

Provide an information base on regulatory law and practice and regulatory economics.

Collaborate with academic and research institutions, professional bodies and NGOs in India and internationally in areas of interest to the Society.

Do all such other lawful things as are conducive or incidental to the attainment of the above aims and objects.

Hony. Chairman

Professor S.L. Rao is an economist by training and a manager by experience. He has spent twenty-eight years as a manager in the private sector, holding positions in marketing, exports and general management in three different companies. He has taught Management in eminent institutions. After two years as a Management Consultant, he was appointed the first Executive Chairman of the National Management Programme. He was Director General of the National Council of Applied Economic Research from 1990-96. He was a distinguished Visiting Fellow at the Tata Energy Research Institute, Visiting Fellow at the Indian Ocean Centre in Perth, Australia and has been a Director on the Boards of a number of organizations. Prof. S.L. Rao joined as Chairman of the Central Electricity Regulatory Commission on August 3, 1998.

Hony. Senior Vice-Chairman

Shri S.C. Mahalik joined the Indian Postal Service in 1960 and became Joint Secretary with the Ministry of Finance, Government of India in 1981. Thereafter, he was Additional Secretary and Financial Advisor, Ministry of Information & Broadcasting and Secretary, Department of Posts in the Ministry of Communications. On his retirement in 1996, he was appointed Chairman, Committee on Pay & Allowances of the Employees of Regional Rural Banks and subsequently, joined Orissa Electricity Regulatory Commission as its Chairman in June 1997 from where he retired in March, 2000. He has a Masters in History from St. Stephen’s College, Delhi.

Hony. Vice Chairman

Shri V.S. Ailawadi is a former officer of the Indian Administrative Service (IAS) with over thirty-three years of experience in Public Administration and Urban Infrastructure Development in the State as well as Central Government. He has represented Government of India as a leader of the delegation to UNDP and ILO on sectional policy deliberations. He has also served as Chief Executive Officer of a premier Development Authority (DDA) for the metropolitan city of Delhi. He was appointed as a member of the first National Committee for Privatization of Existing and New Airports on BDO & BOT. He was a member of the Finance Commission constituted by the Government of India from 1996 to 1998. He has also served as Consultant with the International Labour Organisation. Geneva on country projects. He is the first Chairman of the Harayana Electricity Regulatory Commission. He graduated with Honours in Economics and has a Master’s Degree from University of Delhi.

Member

Justice Shacheendra Dwivedi joined the Bar in 1960 and was at various times elected as Secretary, Vice-President and President of the Madhya Pradesh High Court Bar Association. He has also been the Chairman of the Bar Council, Gwalior. He is an expert in Constitutional law and was appointed as Judge of the High Court in Madhya Pradesh in 1990 from which position he retired in the year 1999, to join the Madhya Pradesh Electricity Regulatory Commission as its first Chairman. He graduated from Victoria College, Gwalior and has done an L.L.B. from Delhi University.

Member

Shri G.P.Rao was commissioned into the Indian Army in 1963 and served as a Commissioned Officer till 1968, when he left to join the Indian Administrative Service. He has worked in the State Government of Andhra Pradesh as well as Government of India. He was the Counsellor (Finance), Embassy of India, Washington (D.C.) U.S.A., Chairman & Managing Director, Singareni Collieries Company Ltd., Hyderabad, Joint Secretary to Government of India, Ministry of Commerce; Additional Secretary to Government of India, Ministry of Defence; and Secretary to Government of India, Department of Rural Employment and Poverty Alleviation. After his retirement in 1997 he was appointed as Vigilance Commissioner of Andhra Pradesh in November, 1998. He assumed the charge of Chairman, Andhra Pradesh Electricity Regulatory Commission on April 3, 1999. Shri Rao is a Bachelor in Science and Bachelor in Law.

Member

Justice N.N. Bhattacharjee joined the Subordinate Judiciary of West Bengal in 1961 and worked as District and Session Judge, Calcutta, Commissioner for Departmental Inquiries, Vigilance Commission, West Bengal and Inspecting Judge, High Court at Calcutta. He was elevated as Judge of the High Court at Calcutta in 1992. He joined West Bengal Electricity Regulatory Commission on March 31, 1999 as its first Chairman and retired on December 10, 1999. He is an M.A. L.L.B.

Hony. Treasurer

Shri G.S. Rajamani served in the Indian Defence Accounts Department from 1965 to 1998. He has been Additional Controller General of Defence Accounts and has worked in various Ministries in the Government of India including the Ministries of Communication, Environment, Electronics, Non-Conventional Energy Sources, Welfare and Defence. Prior to joining the Central Electricity Regulatory Commission in August, 1998, Shri Rajamani was Member (Economic & Commercial) in the Central Electricity Authority. He is Post Graduate in Economics from Madras University and has a Master’s Diploma in Public Administration from the Indian Institute of Public Administration.

Hony. Secretary

Shri A.R. Ramanathan has been a practising Cost Accountant for over twenty years. He joined the Institute of Chartered Accountants of India in their coaching Directorate in 1964 and the Shri Ram College of Commerce, Delhi University in 1967 where he taught Graduate and Post-Graduate courses in Accounting, Company Law and Management Accounting. He has been a Member of the Advisory Committee on Cost Audit Rules set up by the Government of India and a Member of the Central Council of the Institute of Cost & Works Accountants of India. He was selected as a First Professional Member of the Company Law Board by the Government of India in 1991 and presided over the Northern Bench of the Board and was a Member of the Principal Bench of the Board till he joined the Central Electricity Regulatory Commission as a Member in 1998. He has jointly authored a book on Management Accounting and has published extensively. He has also authored a book on "Cost & Management Audit" published by M/s. Tata McGraw Hill.

The year 1999-2000, despite being the inaugural year of the Forum saw intensive activity. The Forum met on four occasions. The first meeting of the Forum was inaugurated by Shri P Kumaramangalam, Hon'ble Minister of Power, Government of India. Members also called on His Excellency the President of India, Shri K.R. Narayanan. A number of overseas visitors attended the meetings of the Forum. The most notable of the overseas visitors was the Hon'ble Linda Breathitt, Commissioner Federal Energy Regulatory Commission (FERC) and the Hon'ble James Connally, Commissioner, Massachussetts Department of Telecommunications and Energy (MDTE). A number of specialists and experts from academic and research institutions and utilities addressed the Forum. Most notable amongst these were Professor R. Narasimha, Director, National Institute of Advanced Studies, Bangalore and Professor V. Ranganathan of the Indian Institute of Management, Bangalore.

The First Meeting of the Forum was inaugurated by Shri P. Kumarmangalam, Hon’ble Minister of Power, Government of India. The Hon’ble Minister and other delegates were warmly welcomed by Prof. S.L. Rao, Hon. Chairman who outlined the objectives with which the Forum was established and emphasised that the Forum would also fill the much felt gap in research and development and thus enable a multi-disciplinary approach to the problems facing the electric power sector. Shri S.C. Mahalik, Hon. Sr. Vice Chairman, in his introductory speech, emphasised the necessity for standardisation of terms and conditions of appointment of regulators and the regulatory staff as also the need for a common approach to the regulatory process.

In his inaugural address the Hon'ble Minister emphasised that independent regulation in the electricity power sector had been established to deal with the problems of less than adequate governance and specialist supervision in the sector, which had become endemic over time. He assured regulators the full support of the Government, but cautioned the regulatory community that in the final analysis, they would have to draw support from the popular mandate and approval of the people of India. The Hon’ble Minister also emphasised that though the regulation of tariff was one of the primary tasks of regulators in view of the existing tariff distortions, adequate care had to be taken to ensure coterminous improvements in the quality of supply. Regulation, by its very definition is a comprehensive concept he felt and regulators had to be aware of, the interests of all stakeholders while safeguarding them. This was essential if they were to succeed in their objective of equitable, efficient and sustainable development of the electric power industry in India.

The vote of thanks was delivered by Shri V.S. Ailawadi, Hon. Vice Chairman, who assured the Hon’ble Minister that the regulatory community would make all efforts to discharge the responsibilities given to them by the Government and thanked the Hon’ble Minister for his support and encouragement to the process of independent regulation in India.

The meeting also reviewed the developments in various SERCs regarding the recruitment of staff, sanction of budget, formulation and approval of process based regulations and the experiences of different Commissions in establishing the infrastructure required for efficient functioning. The Members were briefed in this regard by Justice Shacheendra Dwivedi, Chairman, MPERC, Shri G.P. Rao, Chairman, APERC, Justice D.G. Karia, Chairman, GERC, Shri J.L. Bajaj, Chairman, UPERC, Justice N.N. Bhattacharjee, Chairman, WBSERC, Shri E.C. Arunachalam, Member TNERC as well as Shri V.S. Ailawadi, Chairman, HERC and Prof. S.L. Rao, Chairman, CERC. The meeting was also attended by the Secretary, Energy from the Governments of Goa and Karnataka who briefed members on the steps taken by their respective Governments to introduce the Reform Bills and related measures.

The meeting also considered and adopted the draft Memorandum of Association and the proposed Rules and Regulations for constituting a society called the "National Forum of Regulators". It was accordingly resolved that steps be taken to register the National Forum of Regulators under the Societies Registration Act in the NCT of Delhi.

The meeting approved the induction of Infrastructure Development Finance Corporation (IFDC) as an Institutional Member of the Forum. The meeting also included a presentation by Dr. Bernie Tennenbaum, Associate Director, Office of Economic Policy, Federal Energy Regulatory Commission of the U.S. who spoke on "Centre-State Relations : The Regulatory Process in U.S.". It was of great interest for members that there was considerable similarity, not only in the legislative and administrative arrangements for regulation of the power sector between the United States of America and India, but in the nature of cross jurisdictional issues which could arise in the context of Centre-State relations. In most cases in the U.S., the relationship has been settled through judicial interpretation, while in select cases judicious compromise and adjustment, based on economic rationale, has found the most optimum solution to the problem of overlapping jurisdiction and divergent objectives.

The Policy Advisory Group of the IDFC also presented "A Vision for the Indian Power Sector" which traced the genesis of the problems facing the power sector in India and outlined the various options available for reform.

The General Body approved the change in name of the Society from the "National Forum of Regulators" to the "Forum of Indian Regulators", as advised by the Registrar of Societies. General Body approved the logo of the Society and also decided on the rates of subscription for different categories of members. Members also identified the following key areas for future discussions and research;

• The relationship of regulators with Governments and the judiciary.
• The optimum scope of regulatory jurisdiction for SERCs, particularly those which have been constituted under the ERC Act, 1998 under which the jurisdiction is much more limited than envisaged for Commissions constituted through State Acts.
• Redressal of consumer-complaints, improvements in customer servicing, minimum service standards, quality of service linked incentives and universal service conditions.

The Forum would also make efforts to network with the Policy Group of Carnegie Mellon University, United States, where Dr. V.S. Arunachalam is leading the research efforts on policy reforms in the Indian electricity sector.

The Forum resolved to set up a Sub-Group on Legal Affairs consisting of Shri A.R. Ramanathan, Member, CERC, Justice S.C. Dwivedi, Chairman, MPSERC, Justice D.G. Karia, Chairman, Gujarat SERC and Shri S.C. Mahalik, Chairman, Orissa SERC.

Members were also addressed by Ms. Linda Breathitt, Commissioner, FERC, U.S.A and Mr. James Conelly, Commsioner, MDTE, U.S.A on "Regional Trading Arrangements and the Evaluation of Bulk Markets in the US – relevance to India." The session was chaired by Prof. S.L. Rao, Chairman, CERC. Many of the issues facing the United States in reshaping the arrangements for regional trading were common to those facing the Indian developers and regulators of the grid. It was also felt by the overseas visitors that the arrangements for regional system control and operation in the Inter State Transmission System in India had lessons for the new arrangements being conceived for the U.S.A.

Members also heard the views of Shri D.P. Sinha, Member, CERC, Shri E.C. Arunachalam, Member, TNERC, Shri Bhanu Bhushan, Director, PGCIL and Mr. Roger Woods, Country Director, National Grid, on relevant issues in harmonising the Indian Electricity Grid Code with State Govt. Codes. The session was chaired by Shri V.S. Ailawadi, Chairman, HERC.

In a technical session on the "Traditional Judicial Process : A Review of its applicability for regulatory commissions", chaired by Justice S.C. Dwivedi, Chairman, MPERC, members heard the views of Shri A.R. Ramanathan, Member CERC and Justice N.N. Bhattacharjee, Chairman, WBERC. It was agreed that regulatory commissions had to be flexible in process while maintaining the dignity of the courtroom.

The meeting was attended by representatives from the newly created Delhi ERC and Rajasthan ERC. This was also the first meeting after the formal registration of the Forum with the Registrar of Societies in the NCT of Delhi on February 4, 2000.

In the interim period since the 2^nd meeting, Justice N.N. Bhattacharjee, Chairman, WBERC had retired. Members accordingly resolved to fill the resultant vacancy on the Governing Body by approving the name of Shri J.L. Bajaj, Chairman, UPERC.

Members also resolved to formalise and enhance the work relating to development of position papers on various subjects of interest to the Forum. Accordingly, the following four Sub-Committees were formed :-

Committee on Legal Affairs : The Committee would be chaired by Justice S.C. Dwivedi, Chairman, MPERC and include Justices D.G. Kaira, Chairman, GERC, Shri S.C. Mahalik, Chairman, OERC, Shri J.L. Bajaj, Chairman, UPERC and Shri A.R. Ramanathan, Member CERC, as Members.

The mandate of the Committee would be:

• Identify areas of cross-jurisdictions between the centre, states and across regulatory bodies of other sectors.
• Identify contradictions and inadequacies of legal provisioning.
• Propose amendments or alternative mechanisms for making the legal provisions relating to regulation comprehensive, clear and effective.
• Consider issues relating to amendment of the existing electricity laws in the context of the work being done by the NCAER on behalf of the Govt. of India.

Committee on Tariffs : The Committee would be chaired by Shri P. Subrahmanayam, Chairman, MERC and would have Shri G.S. Rajamani, Member CERC, Shri D. Laxmi Narayana, Member APERC, Shri Ramesh Chandra, Member HERC and Shri D.K. Roy, Member OERC, as Members.

The mandate of the Committee would be:

• Review the broad principles and procedures for tariff determination as available in the ERC Act and related legislation.
• Consider alternative methodologies for tariff determination.
• Propose mechanisms and arrangements for ensuring the adoption of uniform tariff principles, which would meet the objectives of equity, competitiveness, economy and efficiency.

Committee on Competition : The Committee would be chaired by Shri J.L. Bajaj, Chairman, UPERC and would have Prof. S.L. Rao, Chairman CERC, Shri B.M. Oza, Member GERC and Shri R.P. Ganguly, Member WBERC, as Members.

This mandate of the Committee would be;

• Consider the possibility of introducing competition in the electric power industry.
• Propose an agenda for adoption within the constraints of the existing legislation as well as keeping in mind the technological and institutional structure of the power sector in India.

Committee on Communications : The Committee would be chaired by Shri S.C. Mahalik, Chairman, OERC and would have Shri Jayant Deo, Member MERC, Shri D.P. Sinha, Member CERC and Shri Shanti Prasad, Member RERC, as Members.

The mandate of the Committee would be:

• Consider alternatives for ensuring effective communication between utilities, regulators, Government, consumers and civil society groups.
• Examine the potential for adoption of the latest information technology to enable effective data sharing between regulatory commissions and utilities.

Presentations were also made on the recently issued Availability Based Tariff (ABT) order of the CERC dated January 4, 2000 by Shri Sanjeev S Ahluwalia, Secretary, CERC and on the Bulk Supply and Retail Tariff orders issued by the Orissa ERC in December 1999 by Shri S.C. Mahalik, Chairman, OERC.

Members noted that Shri S.C. Mahalik, Chairman, OERC is due to retire on March 31, 2000. The Forum expressed its gratitude and thanks for the services rendered by him to the Forum as its Senior Vice Chairman and hoped that Shri Mahalik would continue to be associated with the activities of the Forum.

Members also approved the nomination of Shri V.S. Ailawadi, Chairman, HERC as Sr. Vice-Chairman, FOIR, subsequent to the retirement of Shri S.C. Mahalik and the nomination of Shri G.P. Rao, Chairman, APERC as Vice Chairman, FOIR.

Since this meeting was the last meeting of the financial year, Members reviewed in detail the work done by the various ERCs. Chairman, MERC, Shri P. Subramaniyam briefed members about the tariff application filed by Maharahstra State Electricity Board (MSEB) with the MERC and the possible options before the MERC. He felt that a strict merit order for despatch, rationalisation of subsidies and the correct estimation of price linked demand would be essential to discharge the statutory obligations of the MERC. Chairman, MERC also briefed members on the circumstances under which the MERC had been forced to stay the waiver given by the Govt. of Mahrashtra to the outstanding bills of the Bhiwandi Powerlooms.

Chairman, KERC, Shri Philipose Matthai briefed the members about the preliminary work being done by the KERC in formulating its process regulations.

Chairman, UPERC, Shri J.L. Bajaj informed members of the need to educate the public and the utilities regarding inefficiencies in the existing system and their severe financial consequences through more vigorous surveys, data-collection and analysis. He was also of the view that strict adherence to a judicial pattern of functioning would unnecessarily restrain the regulators from discharging their developmental role.

Chairman, GERC, Justice D.G. Karia briefed members on the extensive public consultations conducted by the GERC in the tariff application submitted by GEB and detailed the extent of public dissatisfaction with the system of functioning of the GEB and the cost-plus nature of the tariff regime.

Chairman, DERC, Shri V.K. Sood briefed members about the efforts in making the DERC functional through the appointment of staff and the provision of other basic infrastructure facilities.

Chairman, MPERC described the pro-active efforts of the MPERC in holding wide ranging consultations with consumers to understand and appreciate their problems. He also briefed members about the circumstances under which MPERC had been forced to stay the tariff revision done by the Govt. of M.P. after coming into existence of the MPERC. He also informed that the Government had subsequently appealed against the stay to the Hon’ble High Court of M.P.

Thiru E.C. Arunachalam, representing the TNERC, briefed Members on the steps being taken by the Commission to organise its internal functioning in preparation for the tariff filing to be submitted by TNEB. It was noted that Government had yet to appoint the Chairman of the TNERC and that, the Commission had not been given its tariff determination powers.

Shri D.K. Roy, representing the OERC, briefed the Forum about the circumstances under which the OERC had been forced to provide for a differential bulk supply tariff so as to achieve the objectives of uniform tariff in its most recent tariff order. This order has been appealed against and the decision of the Hon’ble High Court was awaited.

A presentation was also made by Shri A.R. Ramanathan, Member CERC on the draft Electricity Bill, 2000 prepared by NCAER. It was decided that members would individually respond on this draft to the Chairman of the Committee on Legal Affairs. The Committee would take a view by April 15, 2000 for onward transmission to the Government of India.

Shri Bhanu Bhushan, Director, PGCIL briefed members on the implications of the Availability Based Tariff (ABT) for maintaining the stability of the inter-state grid and for optimising the cost of supply for beneficiaries. While disagreements were voiced about the resultant equity aspects, there was a wide agreement that given the under-developed nature of the system for measurement, communication and control, there was no alternative to implementation of the ABT. It was suggested that this would be a useful mechanism within the intra-state grids as well.

Prof. R. Narasimha, Director of National Institute of Advanced Studies (NIAS) reviewed the status of electric power sector in general and the work done by his Institute to support reforms. He stressed the need for market based solutions, aggressive development of appropriate technology keeping in mind the natural resources of the country and demand side management. He felt that the inadequate application of science & technology to solving the problem of sustainable energy supply in India had contributed significantly to the existing inadequacies.

Prof. V. Ranganathan of the Indian Institute of Management, Bangalore spoke on the applicability of Schedule-VI of the Electricity Supply Act, 1948 as also the options for performance based rate making (PBR). He was of the view that Schedule-VI is a viable and useful format and could be adopted to meet the challenges of the PBR.

During the year the Forum had an income of Rs 5.10 lakh from the subscription fees of members. Expenditure on various accounts amounted to Rs 1.12 lakhs and the balance of Rs 3.98 lakhs was transferred to reserves. A summary statement of income and expenditure is given below. The audited report of the approved auditors, M/s. Thakur Vaidyanath Iyer & Co., Chartered Accountants, is available in Schedule-III.

In addition to the internal generation of resources, the Forum also benefited from the offer of IDFC to finance the first two meetings of the Forum upto a maximum amount of Rs 200,000. This amount is not reflected in the income and expenditure statement since the funds were not paid into the account of the Forum. Instead the expenses incurred for these meetings was paid for by IDFC.

During the forthcoming year the Forum expects to greatly enhance its activities in the areas of training and research. The subject specific committees are expected to lead this effort. It is also expected that regional initiatives, led by the Joint Secretaries in the Southern, Eastern and Western Regions, would significantly expand the activities of the Forum and give them a regional focus in terms of research, outreach and stakeholder participation.

Four quarterly meetings of the Forum are planned. Along with a review of current issues and developments in process related matters it is expected that the meetings would focus on the following issues:

• Matters relating to the Annual General Body Meeting.
• Strategies and tools to quantify and optimise subsidies.
• Development of common accounting standards for electric power utilities.
• Strategies for improving the quality of supply of electricity, institutionalising the concept of customer services and methods for responsive handling of consumer grievances.

In addition to the regular meetings of the forum, specialised seminars on select proposed topics, listed below, are proposed to be organised.

• Techniques for formulation of efficient tariff structures and estimation of optimum tariff levels.
• The scope for substituting intrusive cost plus regulation with incentive based regulation and competition.
• Arrangements for inducting advances in information technology into the supply of electricity, data sharing and access to information.
• The role of renewable power and mechanisms for sustainable development of the electric power supply industry.

It is proposed to expand the membership of the Forum to include eligible utilities and other associations. The increase in membership will also increase the funds available with the Forum. In addition, interest earned on the accretion to reserves in 1999-2000 of Rs. 3,98,440/- will enhance the income of the Forum. An amount of Rs. 7,00,000/- has also been included as grants from donor agencies for specific research topics. The total income is estimated at Rs. 30,10,000/-, while the total expenditure is estimated at Rs. 20,24,000. Reserves will increase to Rs. 13,84,440/- at the end of the year. Details are available in Schedule-IV.

1. Name of the Society : The name of the Society shall be Forum

2. Registered Office : The Registered Office of the Society shall be

3. Aims and Objects : The aims and objects for which the Society is

1. To promote the growth of independent regulatory mechanisms.
2. To promote transparency in the working of the Regulatory Bodies.
3. To protect consumer interest and develop consumer advocacy organisations.
4. To develop human and institutional capacities in regulatory bodies, utilities and other stakeholders.
5. To research the efficiency and effectiveness of independent regulation and matters incidental thereto.
6. To provide for an information base on regulatory law and practice and regulatory economics.
7. To collaborate with academic and research institutions, professional bodies and NGOs in India and internationally in areas of interest to the Society.
8. To do all such other lawful things as conducive or incidental to the attainment of the above aims and objects.

All the income, earnings, moveable or immovable properties of the Society shall be solely utilised and applied towards the promotion of its aims and objects only as set forth in the Memorandum of Association and no profit or part thereof shall be paid or transferred directly or indirectly by way of dividends, bonus, profits or in any other manner whatsoever, to the present or past members of the Society, or to any person claiming through any one or more of the present and past members. No member of the Society shall have any personal claim on any moveable or immovable properties of the Society or make any profit, whatsoever, by virtue of his membership.

4. Governing Board : The names, address, occupation and

5. Desirous persons : We the undersigned are desirous of forming a

1. Persons whose names are entered as fellow members on the roll of Members of the Society, maintained for the purpose at the date of the registration of the Society under the Societies Registration Act, 1860 viz. the signatories to the Memorandum of Association.
2. Persons admitted by the Governing Body after such registration of the Society as Fellow Members.
3. Persons admitted by the Governing Body after such registration of the Society as Honorary Members.
4. Regulatory Commissions or authorities established by law admitted by the Governing Body as Institutional Members.
5. Institutions and organsations other than Regulatory Commissions or Authorities admitted by the Governing Body as Institutional Members.
6. Former members of Regulatory Commissions or Authorities established by law as Honorary Members.

3. Admission and Qualification of Members :

1. The following persons shall be eligible for admission as Members:

1. Any person who is a member or Secretary of a Regulatory Commission or Authority established by law shall be eligible for becoming a Fellow Member of the Society so long as he is Member of Regulatory Commission or Authority, established by law in case, such a Regulatory Commission or Authority established by law is an Institutional Member of the Society.
2. Any former member or Secretary of a regulatory commission or authority established by law shall be eligible for becoming an Honorary Member of the Society.

 

 

3. Any Regulatory Commission or Authority established by law or any organisation connected with public utilities and recognised as such by the Governing Body or an association of consumers and recognised as such by the Governing Body, shall be eligible for becoming an Institutional Member of the Society.

4. Subscription :

1. The subscription for membership of the Society shall be payable only by the Institutional Members as under:-

1. The annual subscription shall be payable in advance at the commencement of the financial year.
2. No subscription fee shall be payable by the members/Secretaries and the former members/Secretaries of the Regulatory Commission or Authority established by law, who are admitted as Fellow Members or Honorary Members respectively of the Society.
3. The Governing Body of the Society may in its discretion relax the condition of mode and the time of payment in any particular case.

1. On ceasing to be eligible for the membership of the Society.
2. On failure to pay the prescribed subscription within 3 months of its becoming due, and the Governing Body of the Society passes a resolution to that effect.
3. On death, insanity, bankruptcy or conviction by a court of competent jurisdiction for an offence involving moral turpitude in case of individuals and on winding up/dissolution of the organisation in case of Institutional Members.
4. On acceptance by the Governing Body of resignation, submitted to it in writing.
5. When the Governing Board is satisfied that the person concerned has acted in a manner prejudicial to the interests of the Society and passes/adopts a resolution to that effect.

7. Rights and Privileges of Fellow Members :

1. To participate in the proceedings of the General Body.
2. To participate in the election of the Governing Body and vote on all matters brought before General Body.
3. To requisition special meeting of the Governing Body if he is a Member thereof or the General Body in accordance with procedure laid-down under Rule 10(ii) hereinbelow.
4. To be eligible for election to the Governing Body of the Society.

8(a) Rights and Privileges of Associate and Institutional Members:

1. To participate in the proceedings of the General Body.
2. To requisition special meeting to the General Body in accordance with procedure laid-down under Rule 10(ii) hereinbelow.

 

3. To place before the General Body, any proposal for consideration and decision in accordance with the provisions of Rules and Regulations.
4. To vote on all matters being considered by the General Body, except the matters relating to election to the Governing Body, the amendment of Memorandum of Association and Rules and Regulations of the Society and the dissolution of the Society.

(b) Honorary Members may only attend Meetings of the General Body.

9. General Body :

1. To consider the annual report of the Society.
2. To appoint members of the Governing Body.
3. To receive and adopt accounts.
4. To appoint auditors.
5. To approve the budget for the ensuing year.
6. To consider any other business brought before it.

10. Notice of Meeting and periodicity of Meeting :

1. Election of Governing Board of the Society every year.
2. Consideration of the Annual Report.
3. Consideration of the balance sheet and the audited accounts for the previous year.
4. Appointment of auditors for the ensuing year and fixing their remuneration.

1. Other business on the agenda, and
2. Such other business as may be brought forward with the

11. Governing Body :

1. Hony. Chairman
2. Hony. Senior Vice-Chairman
3. Hony. Vice-Chairman
4. Members (Three)
5. Hony. Secretary
6. Hony. Treasurer

12. Secretariat for the Governing Body :

The Secretary and Assistant Secretary of the Central Electricity Regulatory Commission shall function as Executive Secretary and Executive Treasurer of the Society respectively. There shall be one Executive Joint Secretary representing each of the Eastern, Western and Southern zone as may be appointed by the Hony. Vice-Chairman/Hony. Secretary/Members elected on the Governing Body of the Society from the concerned zone. These officials shall perform the functions assigned to them by the Governing Body from time to time.

13. Powers and functions of the Governing Body :

1. Subject to the general control and directions of the General Body, the Governing Body shall be responsible for the management and administration of the affairs of the society in accordance with these Rules and Regulations and shall exercise all powers which may be necessary of expedient for the purpose of achieving the aims and objects of the Society.
2. Without prejudice to the generality of the powers conferred by the foregoing sub-rule, the Governing Body shall have the power –

1. to prepare and execute detailed plans and programmes for furtherance of the aims and objects of the Society;
2. to prepare, approve and execute the budget for three months (April to June) of a financial year, pending approval of budget for the entire financial year by the General Body in its annual meeting to be called in the month of June.
3. to receive, to have custody of and to expend the funds of the Society;
4. to appoint and control such staff as may be required for the efficient management of the affairs of the Society;
5. to enter into agreement for and on behalf of the Society;
6. to institute and defend legal proceedings by and on behalf of the Society;
7. to appoint committees for disposal of any business of the Society or for advice in any matter pertaining to the Society;
8. to take decisions on applications for membership,
9. to attend to any other business referred to it by the General Body of the Society.

14. Powers and duties of Office-Bearers :

1. To preside over the meetings of the General and the Governing Body or any of the Committees of the Society,
2. To have a second casting vote, in the event of equality of votes in the meeting of the Governing Body.
3. To direct the Secretary to convene annual and special meetings of the Governing and General Body, on the dates fixed.

The duties and powers of the Secretary shall be –

1. To execute the decisions of the Society in the General Body meeting or the meetings of the Governing Body.
2. To maintain the record of proceedings of the General Body and the Governing Body of the Society in the minute book.
3. To enter into correspondence with the members and outside agencies, on behalf of the Society.
4. To convene and arrange for the meetings of the General Body and the Governing Body.
5. To prepare annual report of the Society and present it before the Annual General Body meeting of the Society after approval by the Governing Body.
6. To maintain a complete and up-to-date list of the members of the Society, category-wise.
7. To exercise the general supervision over the servants/employees of the Society.
8. To place before the Governing Body all proposals regarding the management of the affairs of the Society.

It shall be the duty of the Treasurer –

1. To receive on behalf of the Society all money due to it and deposit the same in the bank account of the Society as soon as possible.
2. To maintain up-to-date accounts of the Society.
3. To prepare the annual budget of the Society for approval of the Governing Body and the General Body.
4. To maintain accounts of subscription received from the members and the details of members, if any, in default of payment of subscription.
5. To disburse payments authorised by the Governing Body.
6. To render necessary assistance to the auditors appointed by the Governing Body in preparation of balance sheet and annual statement of accounts.

15. Source of Income – Utilisation of Funds :

1) Sources of Income

1. Subscription received from the members.
2. Grants in aid received from the Government or any nation/international agency.
3. Sale of publications, etc.

2) Utilisation of funds :

16. Finalisation of Accounts:

The Accounts of the Society shall be finalised every year on 31^st March and shall be approved by the Governing Body before placing the same before the General Body alongwith the report of the auditors.

17. Audit of Accounts :

The accounts of the Society shall be maintained by the Hony. Treasurer and shall be audited once every year by Auditors appointed by the General Body of the Society who shall be a Chartered Accountant, provided that the first Auditor shall be appointed by the Governing Body who shall hold office till the conclusion of the 1^st Annual General Meeting.

18. Operation of Bank Account :

The funds of the Society shall be kept in any scheduled bank in savings/current/fixed deposit accounts. The accounts shall be operated by the persons specifically authorised by the Governing Body by passing/adopting a resolution.

19. Legal Proceedings :

The Society may sue or may be sued in its name, through its Hony. Chairman or the Hony. Secretary.

20. Amendments :

Any amendment in Memorandum of Association or Rules and Regulations shall be carried out in accordance with the procedure laid down under Section 12 of the Societies Registration Act 1860.

Provided that only the Fellow Members shall be eligible to participate in the proceedings for amendment of the Memorandum of Association and the Rules and Regulations of the Society.

21. Dissolution :

If the Society need to be dissolved, it shall be dissolved as per the provisions laid-down under Sections 13 and 14 of the Societies Registration Act, 1860 as applicable to National Capital Territory of Delhi.

Provided that only the Fellow Members shall be eligible to participate and vote in the proceedings for dissolution of the Society.

22. Disposal of Assets :

If on dissolution of the Society, there remain, after the satisfaction of all its debts and liabilities, any assets/property whatsoever, the same shall not be paid to or distributed among the members of the society or any of them, but shall be given to some other society which has similar aims and objects as the Forum of Indian Regulators to be determined by votes of note less than 3/5^th of the Fellow Members present personally at the time of dissolution of the society or in default thereof by such court as per Section 14 of the Societies Registration Act 1860.

23. Application of the Act :

All the provisions of the Societies Registration Act 1860 as applicable to the National Capital Territory of Delhi shall apply to the Society.

24. Essential Certificate :

Certified that this is the correct copy of the Rules and Regulations of the Society.

We have audited the attached Balance Sheet of the Forum of Indian Regulators as at 31.3.2000 , and also the Income & Expenditure Account of the Society for the year ended on that date and report:

1. We have obtained all information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit.
2. The said accounts are in agreement with the books of accounts maintained by the Society.
3. In our opinion, proper books of accounts have been kept by the Society as far as appears from our examinations of the books.
4. In our opinion and to the best of our information and according to information given to us, the said accounts give a true and fair view:

1. In the case of the Balance Sheet of the affairs of the Society as at March 31, 2000.
2. In the case of the Income and Expenditure Account of the surplus for the year ended March 31, 2000.

For Thakur, Vaidyanath Aiyar & Co.

Chartered Accountants

Sd/-

M.P. Thakur

Partner

Place: New Delhi

Date: August 11, 2000

BALANCE SHEET AS AT MARCH 31, 2000

FUNDS & LIABILITIES AS AT

Transfer from Income and Expenditure Account 2,75,000

Transfer from Income and Expenditure Account 1,23,440

Expenses Payable 1,10,300

Total 5,08,740

=======

Balance with Savings Bank Account 5,08,740

Total 5,08,740

=======

Accounting Policies as per Schedule I attached

As per our Report of even date

For Thakur, Vaidyanath Aiyar & Co.

Chartered Accountants

Sd/- Sd/- Sd/- Sd/-

M.P. Thakur Hony. Hony. Hony.

Partner Chairman Secretary Treasurer

Place : New Delhi

Date : August 11, 2000

FORUM OF INDIAN REGULATORS

INCOME AMOUNT

(RS.)

Member’s Subscription fee 5,10,000

Total 5,10,000

=======

Printing & Stationery 18,175

Meeting Expenses 85,605

Audit Fee 6,300

Rates & Taxes 220

Financial Charges 1,260

Total 1,11,560

=======

Surplus for the year 3,98,440

Amount transferred to Seminar & Symposium 2,75,000

Fund

Balance of Surplus transferred to Balance Sheet 1,23,440

Total 3,98,440

=======

As per our Report of even date

For Thakur, Vaidyanath Aiyar & Co.

Chartered Accountants

Sd/- Sd/- Sd/- Sd/-

M.P. Thakur Hony. Hony. Hony.

Partner Chairman Secretary Treasurer

Place : New Delhi

Date : August 11, 2000

1. Accounts are drawn up generally on accrual basis except Member’s Subscription.

As per our report of even date

For Thakur, Vaidyanath Aiyar & Co.

Chartered Accountants

Sd/- Sd/- Sd/- Sd/-

M.P. Thakur Hony. Hony. Hony.

Partner Chairman Secretary Treasurer

Place : New Delhi

Date : August 11, 2000

T e l e p h o n e

S.No. Institution Key Functionaries Office Residence

1. Central Electricity Regulatory Commission Prof. S.L. Rao 4360004 4621037

Core-3, SCOPE Complex, 5^th Floor, Chairman 4360010 (Fax)

Lodhi Road, New Delhi-110 003. 4360058 (Fax)

Shri D.P. Sinha 4361259 7014605

Member 4360010 (Fax)

4360058 (Fax)

Shri G.S. Rajamani 4361235 6198025

Member 4360010 (Fax)

4360058 (Fax)

Shri A.R. Ramanathan 4361280 7478517

Member 4360010 (Fax)

4360058 (Fax)

Shri Sanjeev S.Ahluwalia 4361051 6011692

Secretary 4360010 (Fax)

4360058 (Fax)

2. Andhra Pradesh Electricity Regulatory Commission Shri.G.P.Rao, 040-3542519 040-3356640

No.8-2-283/B/1, Chairman 040-3542688 (Fax)

Road No.3, Banjara Hills,

Hyderabad – 500 034. Shri.D.Lakshminarayana 040-3542521 040-3304280

3. Delhi Electricity Regulatory Commission Shri V.K.Sood, 6518882/ 6868173/

DVB Sub-Station No. 15, Chairman 6519282 6514049

Sector – 7, Pushp Vihar, 6518925 (Telefax)

New Delhi-17.

Mr. Ajit Srivastav, 6518882/

Secretary 6519282

6518925 (Telefax)

4. Gujarat Electricity Regulatory Commission Justice D.G.Karia 079-6568960 079-7437020

Vth Floor, Centre Point, Chairman 079-6562406 (Fax) Panchvati, Elise Bridge,

Ahmedabad – 380 006. Shri.B.M.Oza, 079-6461345 079-6634556

Member 079-6562406 (Fax)

5. Haryana Electricity Regulatory Commission Shri V.S.Ailawadi 0172-572997 6852238

SCO-180, Sector-5, Chairman 0172-572359(Fax) Delhi-Res.

Panchkula (Haryana)-134 109. 0172-582532(Fax)

6. Karnataka Electricity Regulatory Commission Shri.Philipose Mathai 080-2383389 080-3536863

5^th Floor, Coffee Board Building, Chairman 080-2267312(Fax)

No.1, Dr.Ambedkar Veedhi,

Bangalore – 560 001. Shri.H.R.Gopal 080-2381388 080-8600808

Member 080-2267312(Fax)

Secretary 080-2267312(Fax)

7. Madhya Pradesh Electricity Regulatory Commission Justice Shacheendra Dwivedi 0755-557819 0755-291999

Urja Bhawan Shivaji Nagar, Chairman 0755-766851(Fax) 9845001892

Bhopal – 462 016 (M.P.). (Mobile)

8. Maharashtra Electricity Regulatory Commission Shri.P.Subrahmaniyam 022-2163960 022-3670555/

World Trade Centre, Chairman 9821234761 (Mobile) 3641555

Centre No.1, 13^th Floor, 022-2163976 (Fax)

Cuffee Parade,

Mumbai – 400 005. Shri Venkat Chary 022-2163977 022-6239204

9. Orissa Electricity Regulatory Commission Shri D.K. Roy 0674-414117/ 0674-531491

10. Rajasthan Electricity Regulatory Commission Shri Arun Kumar 0141-741031 0141-701191

Shed No.5, Vidyut Bhawan, Chairman 0141-741018 (Fax)

Joyti Nagar,

Jaipur-302 005. Shri P.K.Das 0141-741106

11. Tamil Nadu Electricity Regulatory Commission Thiru E.C. Arunachalam 044-4322037/ 044-4818124

‘Vetha Manssion’, No.8, Third Main Road, Member 4354930

Chennai – 600 018.

Thiru D.S.Hanumantha Rao 044-4322037 044-4740316

Kisan Mandi Bhawan, II Floor, Chairman 0522-300292 (Fax) 91-4512144

Gomti Nagar, (Noida-Res)

Lucknow – 226 010. Shri Arun Sarkar 0522-300225 0522-237418

Member 0522-300292 (Fax)

Member 0522-300292 (Fax)

13. West Bengal Electricity Regulatory Commission Justice (Retd.) S.K.Phaujdar 033-3357168 033-2162688

Flat No.B-5/2&3, Block-LA, Chairman 033-3357167 (Fax)

Bidhannagar,

Calcutta-700 098. Shri R.R.Ganguly 033-3357643 033-3378841

14. Infrastructure Development Finance Corporation (IFDC) Shri Nasser Munjee 022-2861005/

Raman House, Managing Director 022-2046986

169, Backbay Reclamation, 022-2046309 (Fax)

Mumbai – 400 020.

15. Tata Energy Research Institute (TERI) Dr. R.K.Pachauri 4682121/ 4634663

Darbari Seth Block, Director 4682122

Habitat Place, Lodhi Road, 4682144 & 4682122(Fax)

New Delhi – 110003.

.