Er.energyNP@Gmail.com

The Electricity Regulatory Commission has proposed that even private energy-promoting companies must comply with the Public Procurement Act and has released the draft of the ‘Institutional Governance Standards for Licensed Entities 2025’.

The Commission has made the draft public to collect opinions, advice, and suggestions. According to the draft, licensed entities are required to prepare and implement regulations based on the fundamental principles and rules of public procurement in order to make the procurement process transparent and competitive.

Additionally, the draft includes a provision that companies, firms, or joint venture entities involved in construction or operations are not allowed to participate in construction consulting or the supply of similar goods.

Similarly, it is clearly stated that if the promoter and the construction company are the same, they are not allowed to participate in the construction.

The draft also covers company operations, the structure of the board of directors, accounting systems, risk management, and employee administration. It requires ensuring women’s representation on the board, allows for independent directors, and mandates that directors must remain separate from decision-making on matters of personal interest.

In terms of accounting and financial management, the draft proposes provisions for implementing a double-entry accounting system, mandatory internal and external audits, an effective internal control system, and risk and insurance management.

In human resource management, the draft includes provisions requiring the implementation of employee regulations to organize staff recruitment, promotion, and service benefits, as well as the preparation of procurement regulations to ensure transparency in the procurement process.

It also proposes rules on institutional social responsibility, grievance redress mechanisms, disclosure of financial statements, and granting the regulatory body the authority to conduct necessary inquiries and inspections.

The Electricity Regulatory Commission expects that, once these provisions are implemented, the management of institutions in the electricity generation, transmission, and distribution sectors will become more professional, transparent, and effective.

Biznessnews