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**Report on the Central Electricity Regulatory Commission (CERC) Appointment of Consultants Fifth Amendment Regulations, 2025**
**1. Executive Summary:**
This report provides an overview of the Central Electricity Regulatory Commission (CERC) Appointment of Consultants Fifth Amendment Regulations, 2025, based on the official notification. The core purpose of this amendment is to modify the existing regulations concerning the appointment of consultants, specifically by adding provisions for engaging academic and research institutions/organizations and introducing performance-related variable pay for consultants. Key findings include the introduction of a panel system for academic/research institutions for consultancy services and a performance-based pay structure for individual and staff consultants.
**2. Introduction:**
This report aims to provide a comprehensive understanding of the Central Electricity Regulatory Commission (CERC) Appointment of Consultants Fifth Amendment Regulations, 2025, as outlined in the provided official notification. The analysis is based solely on the text provided and focuses on the changes introduced by this amendment.
**3. Policy Overview:**
* This document amends the Central Electricity Regulatory Commission Appointment of Consultants Regulations, 2008.
* The core objectives of this amendment, as inferred from the text, are to:
* Facilitate the engagement of academic and research institutions/organizations for regulatory research.
* Introduce a performance-based incentive system for consultants.
**4. Background and Rationale:**
The amendment likely aims to enhance the quality and scope of consultancy services available to CERC. The addition of academic and research institutions as potential consultants suggests a need for specialized expertise and research capabilities in regulatory matters. The introduction of performance-related pay indicates a desire to improve consultant performance and align their incentives with the Commission's objectives.
**5. Key Provisions / Changes:**
This amendment introduces the following key changes to the original regulations:
* **Amendment to Regulation 5:** A new clause "aa" is added after clause "a," which introduces "Academic and Research Institutions/Organizations."
* **Insertion of New Regulation 6B:** This regulation codifies the use of Single Source Selection or Consultancy by nomination method for procurement of consultancy services under exceptional circumstances that are:
* Continuation of previous work
* Urgency where timely completion is of utmost importance
* Proprietary techniques or only a specialized agency/institution/consultant has requisite expertise
* Circumstances where adequate justification is available for such single-source selection in the context of the overall interest of the Commission
* **Insertion of New Regulation 6C:** This regulation outlines the process for engaging academic and research institutions/organizations for consultancy services:
* CERC can engage these institutions if it deems their research profile suitable for regulatory research.
* The Secretariat will initiate the engagement process based on terms of reference, including the scope of work and required qualifications.
* The Consultancy Evaluation Committee will solicit Expressions of Interest (EOI) through various channels, including websites and newspapers, outlining assignment types, eligibility, and pre-qualification criteria.
* The Committee will create a panel of eligible institutions based on EOI responses.
* The panel is valid for three years, with a possible two-year extension.
* CERC can solicit bids or offers from panel members for specific research studies, based on their expertise.
* The selection of institutions for specific studies from the panel will be based on the least-cost method, fulfilling technical requirements.
* **Insertion of New Regulation 8B:** Performance related variable pay
* Individual consultants engaged under regulation 7 and staff consultants engaged under regulation 8A shall be entitled to performance-related variable pay of up to 40% of the Monthly fee.
* This is admissible on achieving the pre-specified annual targets by the Commission for organisation, division or team and individual and released on a quarterly or six-monthly basis as per the procedure issued by the Commission.
* A separate procedure shall be issued by the Commission for arriving at the rating of performance.
**6. Target Audience and Stakeholders:**
The target audience and stakeholders directly affected by these changes include:
* Academic and research institutions/organizations interested in providing consultancy services to CERC.
* Individual consultants currently engaged under regulation 7 and staff consultants currently engaged under regulation 8A.
* CERC staff and the Consultancy Evaluation Committee involved in consultant selection and engagement.
* The electricity sector and regulatory stakeholders who benefit from improved research and consultancy services.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** Central Electricity Regulatory Commission (CERC), Secretariat of the Commission, Consultancy Evaluation Committee.
* **Timelines/Procedures:**
* The amendment came into effect on the date of its publication in the Official Gazette (April 11, 2025).
* A panel of academic/research institutions will be created, valid for three years with a possible two-year extension.
* A separate procedure will be issued by the Commission for arriving at the rating of performance related variable pay.
* A procedure for determining the pre-specified annual targets and method of release of the performance-related variable pay will be issued by the Commission.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these changes include:
* Increased access to specialized expertise and research capabilities for CERC.
* Improved quality of regulatory research and consultancy services.
* Greater efficiency and effectiveness in consultant selection and engagement.
* Enhanced consultant performance through performance-based incentives.
* Overall improvement in the regulatory framework and functioning of the electricity sector.
**9. Conclusion:**
The Central Electricity Regulatory Commission (CERC) Appointment of Consultants Fifth Amendment Regulations, 2025, introduces significant changes aimed at enhancing the consultancy services available to CERC. By incorporating academic and research institutions and implementing a performance-based pay structure, the amendment seeks to improve the quality, scope, and effectiveness of regulatory research and consultancy, ultimately benefiting the electricity sector and its stakeholders. These changes are of particular importance to academic institutions, research organizations, and individual consultants operating in the electricity sector.
Key Entities Referenced
Electricity Act, 2003: An act referenced as the source of power for the regulations.
Section 914: A specific section of the Electricity Act, 2003 granting powers.
Section 178: A specific section of the Electricity Act, 2003 granting powers.
Central Electricity Regulatory Commission: The regulatory body issuing the amendment regulations.
Central Electricity Regulatory Commission Appointment of Consultants Regulations,2008: The original regulations being amended.
Central Electricity Regulatory Commission Appointment of Consultants Fifth Amendment Regulations, 2025: The title of the current amendment regulations.
Official Gazette: The official publication where the regulations are published.
Regulation 5: A specific regulation within the Principal Regulations being amended.
Academic and Research InstitutionsOrganisations: A new clause being added to Regulation 5 of the Principal Regulations.
Regulation 6B: New regulation related to the Single Source Selection or Consultancy by nomination method.
Regulation 6C: New subregulation related to Academic and Research InstitutionsOrganisations.
Consultancy Evaluation Committee: Committee responsible for the evaluation of consultant proposals.
Expression of Interest: A call for interested parties to submit their credentials for consideration.
Regulation 8B: New regulation related to performance related variable pay.
Regulation 7: Regulation related to individual consultants.
Regulation 8A: Regulation related to staff consultants.
Central Electricity Regulatory Commission Appointment of consultants Regulations, 2008: The original regulations published on 14th October 2008.
Central Electricity Regulatory Commission Appointment of Consultants Amendment Regulations, 2010: Amendment regulations published on 6th September, 2010.
Central Electricity Regulatory Commission Appointment of Consultants Second Amendment Regulations, 2014: Amendment regulations published on 7th October, 2014.
Central Electricity Regulatory Commission Appointment of Consultants Third Amendment Regulations, 2017: Amendment regulations published on 10th February, 2017.
Central Electricity Regulatory Commission Appointment of Consultants Fourth Amendment Regulations, 2023: Amendment regulations published on 12th May, 2023.
40: Maximum percentage of monthly fee for performance-related variable pay.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-जी.ओ.-अ.-12042025-262431
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CG-GO-E-12042025-262431
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 292] नई दिल्ली, िुक्रवार, अप्रलै 11, 2025/चत्रै 21, 1947
No. 292] NEW DELHI, FRIDAY, APRIL 11, 2025/CHAITRA 21, 1947
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CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 7th January, 2025
No. L-7/1/OS44(59)-CERC.—In exercise of the powers conferred under Section 91(4) read with Section
178 of the Electricity Act, 2003 (36 of 2003), and all other powers enabling it in this behalf, and after previous
publication, the Central Electricity Regulatory Commission, hereby makes the following regulations, to amend the
Central Electricity Regulatory Commission (Appointment of Consultants) Regulations,2008 (hereinafter referred to
as the “Principal Regulations” ), namely:-
1. Short title and Commencement:-
1.1 These regulations shall be called the Central Electricity Regulatory Commission (Appointment of Consultants)
(Fifth Amendment) Regulations, 2025;
1.2 These regulations shall come into force with effect from the date of their publication in the Official Gazette.
2. Amendment to Regulation 5 of Principal regulations:
2.1 A new clause (aa) shall be added after clause (a) of Regulation 5 of the principal regulations as under:-
“(aa) Academic and Research Institutions/Organisations”
3. Insertion of New Regulation 6B of the Principal Regulations
3.1 New regulation 6B shall be inserted as under:
“(6B) The Single Source Selection or Consultancy by nomination method shall be used for procurement of
consultancy services under exceptional circumstances as under:-
(i) where the assignment represents a natural continuation of previous work carried out by the firm;
(ii) in case of an urgency where timely completion of the assignment is of utmost importance ;
(iii) in situations where execution of assignment may involve the use of proprietary techniques or only a
specialized agency/institution/consultant has requisite expertise or the specific situation as may be
decided by the Commission;
(iv) under some special circumstances, when it may become necessary to select a particular consultant
where adequate justification is available for such single-source selection in the context of the overall
interest of the Commission.”
4. Insertion of New Regulations 6C of the Principal Regulations
3.1 After Regulation 6B, the following new sub-regulation (6C) shall be inserted:-
“6C. Academic and Research Institutions/Organisations.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
(1) The Commission, on being satisfied that there is a need for availing consultancy services for regulatory
research which, in its opinion, can be more effectively performed by an academic or research
institutions/ organizations, having research profile considered necessary for an assignment, may decide
to engage academic or research institution or organisations of repute engaged in research in the power
sector or regulatory matters;
(2) For the purpose of sub-regulation (1) above, the Commission will initiate a process of engagement on
receiving a proposal from the Secretariat of the Commission comprising terms of reference indicating
the broad scope of work and the experience/qualification required for obtaining consultancy services.
(3) The Consultancy Evaluation Committee shall, with the approval of the Chairperson, call for Expression
of Interest through advertising on the website, newspaper or e-mail or as may be decided. The
expression of Interest shall include a broad description of the type of consulting assignments,
eligibility, and the pre-qualification criteria to be met by the academic or research institutions/
organization related to the research experience and technical expertise to meet the regulatory research
requirements of the commission.
(4) Consultancy Evaluation Committee shall prepare a panel of academic or research
institutions/organisations meeting the eligibility and pre-qualification requirements based on responses
received against Expression Of Interest.
(5) The panel prepared shall be valid for three years which can be extended for two more years as may be
decided by the Commission. The Commission may call for bids or offers academic or research
institutions or research organizations from a panel prepared under the sub-regulation (4) of this
regulation, based on their area of expertise, for conducting research studies proposed by the
Commission or approved by the Commission.
(6) The academic or research institutions or research organisations, from the valid panel prepared under the
sub-regulation (4) of this regulation, fulfilling technical requirements for a specific research study shall
be selected for identified studies by the Commission on the least cost method.”
5. Insertion of New Regulations 8B of the Principal Regulations
5.1 New Regulation 8B shall be added after Regulation 8A in the Principal Regulations as under:- “8B. Performance-
related variable pay
(1) The individual consultants engaged under regulation 7 and staff consultants engaged under regulation
8A shall be entitled to performance-related variable pay of up to 40% of the Monthly fee, which will be
admissible on achieving the prespecified annual targets by the Commission for organisation, division
or team and individual and released on a quarterly or six monthly basis as per the procedure issued by
the Commission.
(2) A separate procedure shall be issued by the Commission for arriving at the rating of performance.
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./24/2025-26]
NOTE: The Central Electricity Regulatory Commission (Appointment of consultants) Regulations, 2008
were published in the Gazette of India (Extraordinary) No. 160, Part III, Section 4 on 14th October, 2008,
Central Electricity Regulatory Commission (Appointment of Consultants) (Amendment) Regulations,
2010 were published on 6th September, 2010 in Gazette of India, Extraordinary, Part-III, Section-4, No
223 on 6th September, 2010, Central Electricity Regulatory Commission (Appointment of Consultants)
(Second Amendment) Regulations, 2014 were published on 7th October, 2014 in Gazette of India,
Extraordinary, Part-III, Section-4, No 286, Central Electricity Regulatory Commission (Appointment of
Consultants) (Third Amendment) Regulations, 2017 were published on 10th February, 2017 in Gazette of
India, Extraordinary, Part-III, Section-4, No 46 and Central Electricity Regulatory Commission
(Appointment of Consultants) (Fourth Amendment) Regulations, 2023 were published on 12th May, 2023
in Gazette of India, Extraordinary, Part-III, Section-4, No 333.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.