CERC Issues Sixth Amendment Regulations 2025 Proposing Major Reforms In Consultant Appointment And Compensation Rules

The Central Electricity Regulatory Commission (CERC) has released a draft notification titled The Central Electricity Regulatory Commission (Appointment of Consultants) (Sixth Amendment) Regulations, 2025. This proposed amendment introduces several key updates to the rules governing how consultants are appointed, compensated, and managed. The new draft modifies the earlier Principal Regulations that were first issued in 2008, with an aim to modernize the consultant engagement process and bring more flexibility and transparency into the system.

One of the most important changes in the draft concerns the maximum tenure for consultants. The amended Regulation 4 now allows consultants to be engaged for a total period of up to six years. As per the new structure, consultants will first be engaged for one year, during which their performance will be reviewed. If their performance is found satisfactory, their contract can be extended for another three years. After this period, an additional two-year extension may be granted, provided the consultant continues to perform well. This makes six years the maximum engagement period for any consultant. Another addition, Regulation 5A, states that a consultant must now be engaged on a full-time basis, ensuring greater accountability and commitment to assigned work.

The selection process for consultants has also undergone significant revision. Earlier, the selection was primarily based on the ‘least cost system,’ which often prioritized cost over quality. The amended Regulation 6 introduces multiple selection methods such as “Quality cum Cost based selection,” “Fixed Budget based selection (FBS),” and “Single Source selection.” This change aims to provide more flexibility in hiring and ensure that the most suitable experts are chosen for specialized tasks based on their skills and experience rather than cost alone.

In terms of financial compensation, the draft proposes substantial revisions to the fee structure for consultants. The maximum monthly consolidated fee for an “Adviser” is now proposed at ₹2,00,000, while a “Senior Adviser” can receive up to ₹2,50,000 per month. These rates do not include service tax and will be decided based on the consultant’s academic background, domain expertise, and the nature of the assignment. Similarly, for work done on an assignment basis, the maximum payable amount has been increased from ₹10 lakh to ₹20 lakh, giving more scope for higher-value consultancy work.

The draft notification also includes revised salary structures for research professionals. A “Research Associate (RA)” with less than three years of experience will now receive ₹50,000 per month, which can rise to ₹64,000 after one year of satisfactory service. A “Research Officer (RO)” with three to seven years of experience will earn between ₹75,000 and ₹1,10,000 per month. Senior positions such as “Senior Research Officer (SRO)” and “Principal Research Officer (PRO)” with ten or more years of experience will receive up to ₹1,50,000 and ₹1,80,000 per month, respectively.

Additionally, new provisions have been added under Regulation 8C regarding other service conditions. Consultants will now be entitled to annual medical insurance reimbursements ranging from ₹18,000 for Research Associates and Officers to ₹30,000 for Advisors and Senior Advisors. They will also be reimbursed for books and periodicals up to ₹1,500 to ₹2,000 per month, depending on their role. Importantly, these new pay scales and service conditions will apply to all existing staff and individual consultants from the date the amended regulations are officially published.

With these changes, CERC aims to create a more structured, fair, and efficient system for engaging consultants who play a vital role in policy, research, and technical support for India’s power sector.