OERC leadership vacuum threatens annual tariff exercise, investment

BHUBANESWAR: Dozens of regulatory orders and key investment proposals have been held up due to the prolonged delay in appointing a chairperson to the Odisha Electricity Regulatory Commission (OERC), affecting the functioning of the power sector regulator.

The delay has also raised concerns over the commission’s ability to discharge its statutory responsibilities, particularly with the annual tariff determination exercise approaching.

Retired IAS officer and former chief secretary Pradeep Kumar Jena resigned as OERC chairperson on May 25, barely 14 months after assuming charge. He was appointed to the post on March 28, 2025.On July 9, the Energy department issued a notification inviting applications for the vacant post, initially fixing August 9 as the deadline. The last date was subsequently extended twice, first to August 17 and then to August 31. However, the selection committee is yet to meet to finalise the appointment.

The three-member selection committee, headed by a judge of the Orissa High Court, comprises the chairperson of the Central Electricity Authority and the chief secretary as its other members. A meeting scheduled for last month was postponedUnder the established regulatory process, state power generators OPGC and OHPC, bulk power supplier GRIDCO, the four distribution companies, the State Load Despatch Centre and OPTCL are required to submit their annual revenue requirements and tariff proposals by November 30.The commission is also grappling with a severe manpower crunch, with only seven officers working against 22 sanctioned posts. Three advisory positions are vacant, while the secretary’s post is being managed by an officiating incumbent. Four director-level posts have remained vacant for over a year. Of the three joint director posts, only one is occupied, by an officer on deputation from OPTCL.

Section 85 of the Electricity Act, 2003, provides for initiating the selection process six months before a scheduled vacancy to ensure continuity. In cases of resignation or premature death, the government is required to appoint a successor within four months.Mohapatra questioned whether a newly appointed chairperson would have adequate time to familiarise himself with complex regulatory issues before the commencement of tariff hearings.

Following scrutiny, the commission conducts public hearings involving stakeholders, including consumers and the state government, generally from the second week of February. Separate tariff orders are issued in the last week of March and come into effect from April 1 every