Section 3
Formation Of Commission
(1) A Water Tariff Fixation Commission is, hereby, formed for the protection of the interests of consumers by
providing qualitative and reliable water supply and sanitation service to  the consumers at a reasonable price, by fixing the tariff of water supply and sanitation service.
(2) The Commission referred to in Sub-section (1) shall consist of the following members:
(a) A person appointed by the Government of Nepal from amongst the persons who have obtained at least
bachelor’s degree in engineering ,  management, economics or financial management from a recognized
educational institute and gained at least Twelve years of experience in managerial responsibility in a public
body -Chairperson
(b) A person appointed by the Government of Nepal from amongst the persons who have obtained at least
bachelor’s degree in economics, financial management or analysis, chartered accountancy or commerce
from a recognized educational institute and gained at least Ten years of experience in economic evaluation,
accounts or financial analysis related work -Member
(c) A person appointed by the Government of Nepal from amongst the Women, Dalit and Janjati
(nationalities) who have obtained at least bachelor’s degree in engineering,  sociology or law from a recognized
educational institute and gained at least Seven years of experience in the related field -Member
(3) The term of office of the chairperson and the member shall be Four years, and they may be reappointed for another one term.
(4) The member shall take an oath in the format as set forth in the Schedule, prior to assuming his or her office.
(5) The chairperson may designate any officer employee of the Commission to act as the secretary of the Commission.
(6) The chairperson or member shall not be removed from his or her office prior to the expiration of his or her term of office.
(7) Notwithstanding anything contained elsewhere in this Section, if the chairperson or member does not fulfill the duties of his or her office or does not act honestly or if it is proved that he or she is indulged in bad conduct, is incompetent physically or mentally or has financial interest (conflict of interest) with the service provider or he or she is sentenced by the court on a criminal offence, he or she may, at any time, be removed from the office of the chairperson or member.
(8) Any of the following persons shall not be eligible to be appointed to, or continue to hold, the office of the chairperson or member:
(a) An incumbent employee of the Government of Nepal,
(b) An office-bearer of a political party,
(c) A person who is engaged with the service provider or any body related with the service provider or who
has investment in such a body or any kind of personal interest therein,
(d) A person who has no qualification and experience as referred to in Sub-section (2), and
(e) A person who has completed the age of Sixty Five years.