CENTRAL ELECTRICITY REGULATORY COMMISSION (PROCEDURE, TERMS AND CONDITIONS FOR GRANT OF TRADING LICENCE AND OTHER RELATED MATTERS) REGULATIONS, 2004
(a) These regulations shall be called the Central Electricity Regulatory Commission (Procedure, Terms & Conditions for grant of Trading Licence and other related matters) Regulations, 2004.
(b) These regulations shall come into force from the date of their publication in the Official Gazette.
(1) In these regulations unless the context or subject-matter otherwise requires,-
(a) "Act" means the Electricity Act, 2003, (36 of 2003);
(b) "Applicant" means a person who has made an application to the Commission for grant of licence for inter-state trading:
Provided that such person is a resident of India, or a partnership firm registered under the Indian Partnership Act, 1932 (9 of 1932), or a company incorporated under the Companies Act, 1956 (1 of 1956) or an association or body of individuals whether incorporated or not or an artificial juridical person subject to Indian laws.
(c) "Agreement" means the agreement entered into between the electricity trader and the seller of electricity on the one hand and the electricity trader and the buyer
All proceedings under these regulations shall be governed by the Conduct of Business Regulations.
(1) The application for grant of licence for inter-state trading shall be made to the Commission in the manner specified under these regulations, in Form-I appended to these regulations and shall be accompanied by such fee as may be prescribed by the Central Government:
Provided that till such time the fee is prescribed by the Central Government, the application for grant of licence for inter-state trading shall be accompanied by a fee of Rs.1.00 lakh (Rupees one lakh only) payable through Bank Draft/Pay Order drawn in favour of Assistant Secretary, Central Electricity Regulatory Commission, New Delhi, and the fee so paid shall be subject to adjustment as and when the fee is prescribed by the Central Government.
(2) The application for grant of licence for inter-state trading, along with annexures and enclosures shall also be submitted t
(1) The applicant shall have at least one full-time professional having, experience in each of the following disciplines, namely:-
(i) Power System Operations and commercial aspects of power transfer, and
(ii) Finance, commerce and accounts .
(2) The technical requirement of staff shall be complied with before undertaking trading activities, notwithstanding the fact that the Commission has granted the licence for inter-state trading.
(3) The applicant shall furnish to the Commission the details of the professional and the supporting staff engaged by him on full-time basis before undertaking inter-state trading.
Considering the volume of inter-state trading proposed to be undertaken, the net worth of the electricity trader at the time of application shall not be less than the amounts specified hereunder:
Sl. No. Category of the Trading Licence Volume of Electricity proposed to be traded (in Kilo -Watt Hours) Net worth (Rs. in crore)
1 A Upto 100 million 1.50
2 B 100 to 200 million 3.0
3 C 200 to 500 million 7.5
4 D 500 to 700 million 10.0
5 E 700 to 1000 million 15.00
6 F Above 1000 million 20.00
The licensee shall be subject to the following obligations; namely:-
(a) The licensee shall comply with the requirements of laws in force and, in particular, the Act, the Rules and the Regulations, Grid Code, orders and directions issued by the Commission and the State Electricity Regulatory Commission (s) from time to time;
(b) The licensee shall increase his net worth if the volume of trade moves from a lower category to a higher category and the change of category shall be decided based on the volume of electricity traded as on 31st March of each year, and of which the licensee shall keep the Commission informed of his moving from one category to the other and subsequent changes in the net worth;
(c) The licensee shall be subject to the trading margins for the inter-state trading as fixed b
(1) The licensee shall not, without prior approval of the Commission:
(i) Acquire by purchase or take over or otherwise the utility of any other licensee; or
(ii) Merge his utility with the utility of any other licensee; or
(iii) Assign or transfer his licence to any person, by sale, lease, exchange or otherwise.
(2) The licensee shall not engage in the business of transmission of electricity.
(3) Wherever prior approval of the Commission is required, the licensee shall file an appropriate application before the Commission, in accordance with the Conduct of Business Regulations.
(1) The licensee shall pay to the Commission the annual licence fee of the amount specified hereunder, payable by means of a demand draft or pay order drawn in favour of Assistant Secretary, Central Electricity Regulatory Commission, New Delhi:
Sl. No. Category Volume of Electricity proposed to be traded per annum (in Kilo - Watt Hours) Licence fee (Rs. in lakh)
1 A Upto 100 million 1.00
2 B 100 to 200 million 2.00
3 C 200 to 500 million 5.00
4 D 500 to 700 million 7.00
5 E 700 to 1000 million 10.00
6 F Above 1000 million 15.00
Provided that for a part of the year, the lic
(1) The licensee shall -
(a) Maintain separate information and statement of accounts for the business of inter-state trading covered by the licence;
(b) Maintain the statement of accounts in such form and contain such particulars as may be specified by the Commission and till such time these are specified by the Commission, the accounts shall be maintained in accordance with the Companies Act, 1956, (1 of 1956) as amended from time to time;
(c) Keep the accounts of the business of inter-state trading separate from other business, whether licensed or otherwise;
(d) Prepare on a consistent basis from such records accounting statements for each financial year comprising a profit and loss account, a balance sheet and a statement of source and applicatio
The licensee shall,-
(a) Supply such information, as may be called for by the Commission from time to time;
(b) Furnish the information as may be required from time to time, to monitor the licensee's performance and compliance of the terms and conditions of the licence and any other legislative or regulatory requirement in Form III appended to these regulations for submission of information:
Provided that the information in the prescribed Form shall be furnished to the Regional Load Despatch Centre and Regional Electricity Board or Regional Power Committee, as the case may be with a copy to the Commission, on a quarterly basis on 10th day of April, July, October and January for the quarters January to March, April to June, July to September and October to December respectively and the format f
(1) The Commission may, after consultation with the licensee specify the standards of performance of a licensee or a class of licensees.
(2) Notwithstanding anything contained in Clause (1) above, the licensee shall furnish the performance details for each year to the Commission on quarterly basis for the quarter ending 31st March, 30th June, 30th September and 31st December in the format prescribed in Form - IV appended to these regulations, by 15th day of the first month of the following quarter.
The licensee shall, as soon as practicable, report to the Commission:
(a) Any significant change in his circumstances which may affect the licensee's ability to meet his obligations under the Act, the Rules and the Regulations, directions and orders issued by the Commission, the Grid Code, agreement or the licence;
(b) Any material breach of the provisions of the Act, the Rules and the Regulations, directives and orders issued by the Commission, the Grid Code, agreement or the licence; and
(c) Any major change in shareholding pattern, ownership or management of the licensee.
(1) The terms and conditions of the licence may be modified by the Commission in public interest or on an application made by the licensee.
(2) The procedure specified in Regulation 4 hereinabove shall mutatis mutandis be applicable in case the licensee makes an application for any alteration of or modification to the terms and conditions of the licence.
(1) The Commission may revoke the licence in accordance with Section 19 of the Act, in any of the following circumstances, namely:-
(i) Where the licensee in the opinion of the Commission, makes wilful and prolonged default in doing anything required of him by or under the Act, or the Rules or the Regulations;
(ii) Where the licensee breaches any of the terms and conditions of his licence, the breach of which is expressly declared by such licence to render it liable to revocation;
(iii) Where the licensee fails, within the period fixed in this behalf by his licence, or any longer period which the Commission may allow therefor, to show to the satisfaction of the Commission, that he is in a position fully and efficiently to discharge the duties and obligations imposed on him by his licence;
&
(1) All communications relating to the licence shall be in writing and shall be delivered either in person to the addressee or his authorized agent, or sent by registered or speed post at the place of business of the addressee.
(2) All communications shall be regarded to have been given by the sender and received by the addressee, -
(i) when delivered in person to the addressee or to his authorised agent;
(ii) on expiry of 15 days from the date of sending by registered or speed post at the address of the addressee.
The Commission may in appropriate cases and for reasons to be recorded in writing relax any of the provisions of these regulations.
Application form for grant of Inter-State Trading Licence
Particulars of the Applicant
1. Name of the applicant :
2. Address :
3. Name, Designation & Address :of the contact person :
4. Contact Tel. Nos. :
5. Fax No. :
6. E-mail ID :
7. Place of Incorporation/Registration :
8. Year of Incorporation/Registration :
9. Following documents are to be enclosed :
a) Certificate of registration :
b) Cert
CENTRAL ELECTRICITY REGULATORY COMMISSION LICENSE TO TRADE IN ELECTRICITY AS AN ELECTRICITY TRADER
1. The Central Electricity Regulatory Commission (hereinafter referred to as "the Commission"), in exercise of the powers conferred under Section 14 of the Electricity Act, 2003 (hereinafter referred to as "the Act"), hereby grants this licence as a Category ______ trader to ________, (hereinafter referred to as "the licensee") to trade in electricity as an electricity trader in the area ______ subject to the terms and conditions contained in the Act, (in particular, Sections 17 to 22 thereof, both inclusive), the Rules made by the Central Government (hereinafter referred to as "the Rules") and the Regulations specified by the Commission (herein after referred to as "the Regulations"), including statutory amendments, alterations, modifications, reenactments thereof, which shall be rea
PROFORMA FOR SUBMISSION OF INFORMATION FOR THE QUARTER (SAY JANUARY TO MARCH, 2004)
Name of the Trader:
License details (No & date):
S. No. Volume of Trading in million Kwhs Purchased from* Sold to* Point of purchase Purchase price Point of sale Sale price Transmission/ wheeling charges borne by Seller/Trader/ Buyer** Transmission losses borne by Seller/ Trader/ Buyer** UI charges borne by Seller/ Buyer** Trading margin charged Remarks
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Note: All the transactions shall be reported transaction-wise on real time basis and should not be aggregated.
PROFORMA FOR SUBMISSION OF STANDARDS OF PERFORMANCE OF ELECTRICITY TRADER (TO BE SUBMITTED TO THE COMMISSION AND RLDC)
Name of the Trader:
License details (No. & date):
S. No. Volume of trading during the quarter Cumulative trading upto the present quarter Whether there is any change in the category of trader Whether networth is increased, due to change of category Whether additional license fee, due to change in category deposited with the Commission Whether any violation to the license conditions pointed out by any agency or observed by the licensee himself Payment track record for energy purchased for trading Remarks
(Yes / No) (Yes / No) (Yes / No)
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