CERC's new norms for inter-state power trading business
The Central Electricity Regulatory Authority (CERC) has issued a new norm for companies to carry inter-state power trading business. Companies must have net worth ranging between Rs 5 crore and Rs 50 crore for obtaining three different types of po...
By Subhash, ET Bureau |
NEW DELHI: The Central Electricity Regulatory Authority (CERC) has issued a new norm for companies to carry inter-state power trading business. Companies must have net worth ranging between Rs 5 crore and Rs 50 crore for obtaining three different types of power trading licenses.
"The new trading regulations aim to tighten terms and conditions for grant of trading licences ..... and to encourage only serious players in the business," a CERC official said. The new norms will be applicable for both existing as well as new applicants, he said. The authority has set March 31, 2010 as the deadline for power companies to comply with the new requirements. So far CERC has issued trading licences to 42 companies such as Power companies such as
Tata Power, Reliance Energy, RPG Power, GMR Energy and DLF Power. The new regulation has also specified that CERC will also regulate electricity imported from other countries. "This will encourage power trading from neighbouring countries," the official said.
CERC has also reduced the types of licenses to from six to three. "The category -I license holder will have no restriction on the volume of electricity to be traded in a year but it will show a higher net worth of Rs 50 crore," he said.
"The category- II licensee will have to limit trading of electricity to a maximum of 500 million units in a year and have to have net worth of Rs 25 crore while category -III licensee will be permitted to trade upto 100 million units of electricity in a year and have a net worth of Rs 5 crore," he added. The net worth definition has also been revised to discount loans and advances given to associates, he said.
"The new trading regulations aim to tighten terms and conditions for grant of trading licences ..... and to encourage only serious players in the business," a CERC official said. The new norms will be applicable for both existing as well as new applicants, he said. The authority has set March 31, 2010 as the deadline for power companies to comply with the new requirements. So far CERC has issued trading licences to 42 companies such as Power companies such as
Tata Power, Reliance Energy, RPG Power, GMR Energy and DLF Power. The new regulation has also specified that CERC will also regulate electricity imported from other countries. "This will encourage power trading from neighbouring countries," the official said.
CERC has also reduced the types of licenses to from six to three. "The category -I license holder will have no restriction on the volume of electricity to be traded in a year but it will show a higher net worth of Rs 50 crore," he said.
"The category- II licensee will have to limit trading of electricity to a maximum of 500 million units in a year and have to have net worth of Rs 25 crore while category -III licensee will be permitted to trade upto 100 million units of electricity in a year and have a net worth of Rs 5 crore," he added. The net worth definition has also been revised to discount loans and advances given to associates, he said.
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