New Delhi: Power regulator Central Electricity Regulatory Commission (CERC) today announced new Inter-State Trading Regulation 2009, replacing the existing regulation introduced in 2004.
Power imported from other countries for resale in the domestic market has also been covered under these regulations, an official statement said today.
The new regulation is aimed at making the terms and conditions for granting trading licence more stringent, keeping in view the current price of trading in power, liquidity needs of power trading business and to encourage only serious players intending to undertake trading business.
The existing licencees have been given time till March 2010 to re-orient themselves as per the new provisions.
Under the regulation, number of categories of licences have been reduced from six to three. Also, one can apply depending upon the applicants’ net worth and amount of electricity to be traded every year.
A provision has also been made under the regulation that a licencee shall not purchase electricity from the entities defaulting in payment of unscheduled charges, transmission charges and charges of national or state or regional load dispatch centres, if so directed by the CERC.
The minimum net worth requirement has been revised upward from Rs1.5 crore to Rs5 crore.