Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of trading licence and other related matters) (First Amendment) Regulations, 2020

Nov 03, 2020 | by TeamLease RegTech Legal Research Team

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Industry Specific Compliance

The Central Electricity Regulatory Commission (CERC) has issued the 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 Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of trading licence and other related matters) Regulations, 2020. 

The following amendments have been made: 

• Regulation 8 (1)(e), a new proviso has been inserted, which specifies the trading margin limit for banking transactions, namely: 

“Provided that the trading margin shall not be less than zero (0.0) paise/kWh from either of the parties to the banking transaction.”

• Regulation 9 (10) (b), a new proviso has been inserted, which specifies the short-term contract shall be equivalent to the letter of credit given to the seller, namely: 

“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.”

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

 


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