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The turf war between two regulators — the Forward Markets Commission(FMC) and the Central Electricity Regulatory Commission(CERC) — has reached the Bombay High Court. The FMC has dragged the CERC to the Court over regulatory jurisdiction on Power Exchanges offering month-ahead contracts.

The FMC’s petition was taken up on 20-11-2009. The court recommended that the issue be put up before a high-power Committee of Secretaries as it involved two regulators, Mr Hemant Sahai, counsel for respondent Power Exchange Ltd (PXIL) said. FMC, while consenting that such a Committee can hear it, however, had disagreements with CERC over its constitution, he said. The matter is listed for 23-11-2009.

The FMC said electricity futures trading on PXIL was illegal as the latter was not registered with it and trading in “non-transferable specific delivery contracts” beyond 11 days was in its ambit. The CERC, which gave licences to exchanges such as PXIL for these contracts, maintains that the mandate is vested with it under the Electricity Act 2003.

Source - Businessline