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POWER company chairman who sits on an energy watchdog has been told he must dispose of his business interests in the company.
Harry McCracken was appointed to the board of Utility Regulator by former finance minister Sammy Wilson in September.
The Irish News later revealed Mr McCracken is also chairman of electricity transformer manufacturer Winder Power which has a "term contract" with Northern Ireland Electricity where he previously had a 40-year career culminating as managing director.
He is also chairman and equity holder of Simple Power, a company selling power to the national grid.
After his appointment Derry SDLP assembly member John Dallat wrote to the chairman of the Utility Regulator Bill Emery voicing his concern about a potential "conflict of interest".
He recently confirmed in writing to Mr Dallat that he has asked Mr McCracken to formally "investigate options for divesting himself of his interests in both Simple Power and Winder Power in light of the duties associated with his membership of the Utility Regulator board".
Mr Emery also confirms that the "deadline for divestment" is March 2014.
"As an interim measure, Mr McCracken will not be participating in any board discussions on electricity matters nor will he receive papers in respect of same," he wrote.
Mr Dallat, who is deputy chairman of the assembly's Public Accounts Committee, welcomed the development and said it "sends out a very clear message about the seriousness of appointing people to public bodies" where there is a conflict of interest.
"This is a practice which happened in the past and unfortunately still arises and must be ended," he said.
A spokesman for the Utility Regulator said: "The Utility Regulator benefits from having board members with industry experience and expertise. Where previous experience may give rise to a potential conflict of interest these are managed pro-actively and appropriately."
The spokesman added that McCracken registered interests in both Winder and Simple Power with the Utility Regulator.
A spokeswoman for the Department of Finance and Personnel (DFP) said: "Mr McCracken's was appointed to the board on the basis of his extensive experience in the electricity industry.
"It is normal practice that all board members are required to register relevant interests and appropriate steps are then taken to address those as necessary. DFP is aware that the Utility Regulator is discussing some such issues with Mr McCracken."