KSEBOA - KSEB Officers' Association

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The Central Electricity Regulatory Commission(CERC) has issued new set of Inter-State trading regulations to tighten the terms and conditions for grant of trading license for electricity. A provision has been made that licensee shall not purchase electricity from the entities which are defaulting in payment of UI charges, transmission charges, charges of NLDC/RLDC/ ULDC etc., if so directed by the CERC. As per CERC notification No. L-7/165(180)/2008-CERC dated 26.05.2009, the existing licensees are required to comply with new net-worth and liquidity requirement by 31.03.2010.

The important features of the new Trading Regulations, 2009 are as under:

• Definition of inter-state trading has been revised to explicitly include electricity imported for re-sale.

• Number of categories of licensees has been reduced to 3 from 6.

• Net worth requirement has been increased to the range of Rs.5 crores to Rs.50 crores keeping the prevalent prices of traded power in view.

• Net-worth definition has been revised to discount the loans and advances given to the associates.

• New conditions of liquidity i.e. current ratio and liquidity ratio have been introduced to adjudge the credit-worthiness of the applicant.

• Technical qualifications of the full time professionals have been specified.

• Definition of associate has been rationalized.