Petition No. 113/2011. Case: In Re: Indian Energy Exchange Limited Vs. Central Electricity Regulatory Commission
| Case Number | Petition No. 113/2011 |
| Judges | Pramod Deo, Chairperson, S. Jayaraman, V.S. Verma and M. Deena Dayalan, Members |
| Issue | Electricity Law |
| Judgement Date | April 19, 2011 |
| Court | Central Electricity Regulatory Commission |
Order:
1. Regulation 22 of the Central Electricity Regulatory Commission (Power Market) Regulations, 2010 (hereinafter referred to as "Power Market Regulations") inter alia provides as under:
22. Ownership and Governance structure of Power Exchange
(i)...
(ii) Independent Directors - At least one third of the members of the Board or a minimum of two directors, whichever is higher, shall be independent directors selected from a panel constituted by the Power Exchange and approved by the Commission out of which one person will have professional qualification and experience in finance. The panel shall be constituted of persons of repute and integrity from academics, professionals, industry representatives, public figures none of whom should have any interest in any Member of Power Exchange and any fiduciary relationship with any shareholder of Power Exchange.
2. The applicant, Indian Energy Exchange Limited ("IEX") was accorded approval by the Commission to establish and operate a power exchange vide order dated 31.8.2007 in Petition No. 38/2007. The applicant started its operation with effect from 27.6.2008. In terms of the first proviso to Regulation 14, the applicant is deemed to be registered under the Power Market Regulations. The applicant is required to comply with inter alia the requirements of ownership and governance structure as laid down in the Power Market Regulations. Therefore, at least one third of the members of the Board of the Applicant or a minimum of two directors, whichever is higher, shall be independent directors selected from a panel constituted by the Power Exchange and approved by the Commission.
3. The applicant by its letter dated 20.12.2010 has sought the approval of the Commission to a panel of four persons for appointment as Independent Directors on the Board of IEX in order to comply with Clause (ii) of Regulation 22 of the Power Market Regulations.
4. Regulation 24 of the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999 (hereinafter "Conduct of Business Regulations") provides that the Commission may initiate any proceedings suo motu or on a petition filed by any affected or interested person. Clauses (c) and (d) of Regulation 2 of Conduct of Business Regulations define "petition" and "proceedings" as under:
(c)'Petition' means and includes all petitions, applications, complaints, appeals, replies, rejoinders, supplemental pleadings, other papers and documents;
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