Draft CERC (Procedure, Terms and Conditions for grant of trading licence and other related matters) (First Amendment) Regulations, 2020

Mar 03, 2020 | by Avantis RegTech Legal Research Team

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Commercial Compliance

The Central Electricity Regulatory Commission (CERC) on February 27, 2020, issues the draft Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of trading licence and other related matters) (First Amendment) Regulations, 2020 to further amend the CERC (Procedure, Terms and Conditions for grant of trading licence and other related matters) Regulations, 2020.

The followings are the amendments made under the CERC (Procedure, Terms and Conditions for grant of trading licence and other related matters) Regulations, 2020:-

 Under Regulation 8(1)(e) related to “Trading Margin”, the Trading Licensee shall charge a cumulative trading margin of not less than zero (0.0) paise/kWh and not exceeding seven (7.0) paise/kWh for banking of electricity, provided that the trading margin shall not be less than zero (0.0) paise/kWh from either of the parties to the banking transaction.

 Under Regulation 9(10)(b) related to “Obligations of the Trading Licensee”, the Trading Licensee shall make payment of dues by the agreed due date to the seller for purchase of the agreed quantum of electricity through an escrow arrangement or irrevocable, unconditional and revolving letter of credit in favour of the seller. Such escrow arrangement shall be equivalent to 1.1 times the average monthly bill amount; and 1.05 times of contract value for short term contracts, provided that where the duration of the short term contract is more than one month, the letter of credit in favour of the seller shall be equivalent to 1.05 times of the monthly contract value with validity period equal to validity of the contract.

CERC invites comments or suggestions or objections, if any, from the stakeholders and interested persons on the above draft regulations. The comments or suggestions or objections may be sent to the Secretary, Central Electricity Regulatory Commission, 3rd and 4th Floor, Chanderlok Building, 36, Janpath, New Delhi -110 001 on or before March 16, 2020. The comments or suggestions or objections shall also be uploaded through SAUDAMINI Portal by clicking e-Regulation link on the e-filing Home Page. 

For any further query on uploading on SAUDAMINI Portal, e-Court helpdesk at 011-23353503, extension 260 or 7042604928 may be contacted.

[Notification No. L-1/253/2019/CERC]


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