Friday, August 7, 2015

Salient Features of Draft Regulatory Reform Bill, 2013

Salient Features of Draft Regulatory Reform Bill, 2013



Salient Features of Draft Regulatory Reform Bill, 2013
(i) General:
a. The objective of the proposed regulatory Bill is orderly development of infrastructure
services, enable competition and protect consumer interest in securing access to affordable and quality infrastructure.
b. The Draft Bill is guided by the three general principles of separation of power, democratic accountability, and the federal principle. Accordingly, the rule-making and enforcement functions have been separated from judicial functions, which have been vested in Appellate Tribunals. To secure democratic accountability, the regulator has been made responsible to the legislature and to the people at large. The federal principle has also been followed through distribution of subjects of economic regulation between union and state competencies.
c. The Draft Bill includes an overarching institutional framework for regulatory commissions and appellate tribunals, their role and functions, legislative, financial and judicial accountability and their interface with the market and the people.
(ii) Constitution:
Independence and autonomy are key considerations for constitution of regulatory commissions and appellate tribunals. In the Draft Bill, selection, appointment and removal of chairperson and members is insulated against any perceived interference or manipulation that may influence the outcome. The Draft Bill lays down a fair selection process where it proposes that the Chairperson and members of the regulatory commissions may be appointed by the President of India on the recommendation of the Prime minister who should choose from out of a panel of two or three names empanelled by a High Powered Selection Committee and approved by the Minister concerned.
(iii) Tariff Regulatory Commission:
The Government may also constitute tariff regulatory commissions for determination of tariffs in the provision of goods and services in public utility industries where competition is either restricted or the prices of such goods or services are determined by the government or an entity owned or controlled by the government.
(iv) Tenure and other conditions:
Tenure of members is proposed to be fixed at four years. It is proposed that qualifications and experience of members should be specified by law with a view to ensure a multi-disciplinary composition of the regulatory commissions and appellate tribunals. Further, at least one member may also be drawn from other than public sector background to enrich the functioning
of the regulatory bodies