Executive Summary:
The Central Electricity Regulatory Commission (CERC) amends its regulations regarding the procedure, terms, and conditions for granting trading licenses. The amendments, effective from the date of notification in the Official Gazette, modify the trading margin for banking transactions and the letter of credit requirements for short-term contracts exceeding one month. These changes are made under the powers conferred by Section 178 of the Electricity Act, 2003.
Key Points / Main Content:
* **Trading Margin Amendment:**
* The trading margin for banking transactions shall not be less than zero (0.0) paise/kWh from either party involved.
* **Letter of Credit Amendment:**
* For short-term contracts exceeding one month, the letter of credit in favor of the seller must be equivalent to 1.05 times the monthly contract value.
* The validity period of the letter of credit should match the validity of the contract.
Impact Analysis:
* **Electricity Traders:**
* Impact: Affected by the revised trading margin for banking transactions and the new letter of credit requirements for short-term contracts.
* Action Required: Ensure trading margins comply with the new minimum limit. For contracts longer than one month, provide a letter of credit equivalent to 1.05 times the monthly contract value, valid for the contract duration.
* **Central Electricity Regulatory Commission (CERC):**
* Impact: Responsible for implementing and enforcing the amended regulations.
* Action Required: Update guidelines and monitoring processes to reflect the changes in trading margin and letter of credit requirements.
* **Parties involved in Banking Transactions:**
* Impact: Directly affected by the revised trading margin for banking transactions
* Action Required: To ensure that the trading margin from either of the parties to the banking transaction is not less than zero 0.0 paise/kWh
* **Seller:**
* Impact: Will need to ensure that the letter of credit validity is equivalent to the validity of the contract.
* Action Required: To provide a letter of credit equivalent to 1.05 times the monthly contract value, valid for the contract duration where the duration of the short term contract is more than one month
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): A statutory body responsible for regulating the electricity sector in India. It is the primary regulatory body mentioned in the document.
Electricity Act, 2003: The primary legislation governing the electricity sector in India, providing the legal framework for the CERC's regulatory powers.
Central Electricity Regulatory Commission Procedure, Terms and Conditions for grant of trading licence and other related matters Regulations, 2020: The original regulations that this notification seeks to amend. These regulations pertain to the procedure, terms, and conditions for granting trading licenses in the electricity sector.
New Delhi: The location where the notification was issued.
Central Electricity Regulatory Commission Procedure, Terms and Conditions for grant of trading licence and other related matters First Amendment Regulations, 2020: The short name for these regulations.
Sanoj Kumar Jha: Secretary of the Central Electricity Regulatory Commission.
Mayapuri, New Delhi: Location of the Government of India Press.
Banking transaction: Transaction with trading margin shall not be less than zero 0.0 paisekWh from either of the parties
रिज(cid:7021)(cid:7069)ी स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-02112020-222897
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असाधारण
EXTRAORDINARY
भाग III—ख(cid:7003)ड 4
PART III—Section 4
(cid:7079)ािधकार स े(cid:7079)कािशत
PUBLISHED BY AUTHORITY
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CENTRAL ELECTRICITY REGULATORY COMMISSION
AMENDMENT
New Delhi, the 25th March, 2020
No. L-1/253/2019/CERC .—In exercise of powers conferred under Section 178 of the Electricity
Act, 2003 (36 of 2003) and all other powers enabling it in this behalf, and after previous publication, the
Central Electricity Regulatory Commission hereby makes the following regulations, to amend the Central
Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of trading licence and
other related matters) Regulations, 2020 (hereinafter referred to as the “Principal Regulations”) namely:-
1. Short Title and Commencement
a. These regulations may be called the Central Electricity Regulatory Commission (Procedure,
Terms and Conditions for grant of trading licence and other related matters)
(First Amendment) Regulations, 2020.
b. These regulations shall come into force with effect from the date of notification in Official
Gazette.
2. Amendment to Regulation 8 of the Principal Regulations:
2.1 A new proviso shall be added to sub-clause (e) of clause (1) of Regulation 8 of the Principal
Regulations, as under:-[भाग III—ख(cid:7003) ड 4] भारत का राजप(cid:7074) : असाधारण 3
“Provided that the trading margin shall not be less than zero (0.0) paise/kWh from either of the
parties to the banking transaction.”
3. Amendment to Regulation 9 of the Principal Regulations:
3.1 A new proviso shall be added after sub-clause (b) of clause (10) of Regulation 9, as under:-
“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 one point zero five (1.05) times of the monthly
contract value with validity period equal to validity of the contract”
SANOJ KUMAR JHA, Secy.
[ADVT-III/4/Exty./314/2020-21]
Note:
The Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of trading
licence and other related matters) Regulations, 2020 were published in Part III, Section 4, No. 43 of the
Gazette of India (Extraordinary) dated January 31, 2020.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054