Cap. 545 Art. 3Establishment and composition of the Regulator for Energy and Water Services.

(1) There shall be a legally distinct body as established by this Act, to be known as the Regulator for Energy and Water

Services, hereinafter referred to as the "Regulator" which shall consist of a Chairman and not less than four (4) and not more than six (6)

other members.

(2) The Regulator shall be functionally independent from other public or private entities. The staff and the persons responsible for the management of the Regulator shall act independently from any market interest and shall not seek or take direct instructions from Government or other public or private entities when carrying out its regulatory tasks. This requirement shall be without prejudice to close cooperation, as appropriate, with other relevant national authorities or to general policy guidelines issued by the Government not related to its regulatory powers and duties.

(3) The Regulator shall take autonomous decisions, independently from any political body.

(4) The Regulator shall have all the necessary human and financial resources it needs to carry out its duties and exercise its powers in an effective and efficient manner.

(5) The Regulator shall have a separate annual budget and autonomy in the implementation of the budget.

(6) The members of the Board of the Regulator shall be appointed based on objective, transparent and published criteria, in an independent and impartial procedure, which ensures that the candidates have the necessary skills and experience.

(7) The members of the Board of the Regulator shall be appointed by the Minister for a term of five (5) years or for such longer period as may be specified in the instrument of appointment subject to a maximum term of seven (7) years but the members so appointed may be re-appointed, once only, on the expiration of their term of office for a term of five (5) years or for such longer period as may be specified in the instrument of appointment subject to a maximum term of seven (7) years.

An appropriate rotation scheme for the appointment of the members of the Board of the Regulator shall be put in place, in terms of which the end date of the term of office of the Board members is not the same for all members.

(8) The Minister may designate one (1) of the other members of the Board of the Regulator as Deputy Chairman and the member so designated shall have all the powers and perform all the functions of the Chairman during his absence or inability to act as Chairman or during any vacancy in the office of Chairman; and the Minister may also, in any of the above circumstances, appoint another person to act as Chairman and in such a case the foregoing provisions shall apply in respect of that person.

(9) A person shall not be qualified to hold office as a member of the Board of the Regulator if he:

(a) is a Minister, Parliamentary Secretary or a member of the House; or

(b) is a judge or magistrate; or

(c) has a financial or other interest in any enterprise or activity which is likely to affect the discharge of his functions as a member of the Board of the Regulator.

(10) Subject to the provisions of this article, the office of a member of the Board of the Regulator shall become vacant:

(a) at the expiration of his term of office; or

(b) if any circumstances arise that, if he were not a member of the Board of the Regulator, would cause him to be disqualified for appointment as such.

(11) A member of the Board of the Regulator may only be removed from office by the Minister if such member is unfit to continue in office for any one or more of the following reasons:

(a) if the member is found unable to act independently from any market interests;

(b) if the member is found taking instructions or directions from any other public or private entity or person in the exercise of the regulatory functions assigned to the Regulator;

(c) where such member has been found guilty of misconduct under any law.

(12) If a member resigns or if the office of a member of the Board of the Regulator is otherwise vacant or if a member is for any reason unable to perform the functions of his office, the Minister shall take all appropriate measures to fill the vacancy so created, subject to the provisions of sub-articles (9), (10) and (11).

(13) Any member of the Board of the Regulator who has any direct or indirect interest in any contract or business made or proposed to be made by the Regulator, not being an interest which disqualifies such member from remaining a member, shall disclose the nature of his interest at the first meeting of the Board of the Regulator after the relevant facts have come to his knowledge; such disclosure shall then be recorded in the minutes of the meeting of the Board of the Regulator, and the member having an interest as aforesaid shall withdraw from any meeting at which such contract is discussed. Where the interest of the member is such as to disqualify him from remaining a member, he shall immediately report the fact to the Board of the Regulator and submit his resignation. Any disclosure under this sub-article shall be notified by the Regulator to the Minister without delay.

(14) Any member of the Board of the Regulator shall avoid any conflict of interest when acting as a member of the Board. A member of the Board shall preserve confidentiality on information obtained and matters pertaining to the Regulator during and beyond the end of the mandate. Where the interest of the member is such as to disqualify him from remaining a member, he shall report the fact immediately to the Board of the Regulator and tender his resignation. Any disclosure under this sub-article shall be communicated by the Regulator to the Minister without delay.