The Central Electricity Regulatory Commission (CERC) has announced significant amendments to its consultant appointment regulations, enhancing the process for engaging expert advice. The Central Electricity Regulatory Commission (Appointment of Consultants) (Fifth Amendment) Regulations, 2025, introduces key changes focused on expertise, efficiency, and performance-based compensation.
This notification was issued on January 7, 2025 and will come into effect upon its publication in the official gazette.
The regulations now explicitly allow the CERC to engage “Academic and Research Institutions/Organizations” as consultants. This opens avenues for collaboration with universities and research bodies possessing specialized knowledge relevant to the power sector.
A new provision for “Single Source Selection” has been introduced for specific circumstances. This allows the CERC to directly appoint a consultant without competitive bidding when:
- The assignment is a continuation of previous work.
- Urgent timelines necessitate expedited action.
- The assignment requires proprietary techniques or unique expertise held by a single entity.
- Other special circumstances, justified in the Commission’s interest, warrant direct selection.
A detailed process for engaging academic and research institutions has been outlined. This includes:
- Proposal initiation by the CERC Secretariat.
- Public call for Expressions of Interest (EOI).
- Creation of a pre-qualified panel of institutions valid for three years (extendable by two years).
- Selection from the panel based on expertise and cost-effectiveness.
Consultants engaged under the regulations will now be eligible for performance-related variable pay, up to 40% of their monthly fee. This incentive will be tied to achieving pre-specified annual targets at organizational, divisional, team, and individual levels. Payment will be made quarterly or semi-annually based on a separate procedure to be issued by the CERC.
