CERC grants an inter-state electricity trading license to ReNew Energy Markets

License awarded to ReNew Energy Markets for inter-state electricity trading subject to compliance with the regulations during the subsistence of the trading license…

CERC has granted a license for interstate power trading to ReNew Energy Markets, (a company of a ReNew Power group), against the petition submitted to CERC by the company, seeking approval.

The Trading License Regulation stipulates that the company applying for a Category IV trading license must have a net worth of INR 100 million and a liquidity ratio of 1:1 as on the date of the audited balance sheet accompanying the application. A financial year’s traded volume of electricity is not expected to exceed 2,000 million units.

Based on the submissions ReNew Energy Markets had made, the Commission concluded the company possessed the necessary net worth, current ratio, and liquidity ratio to qualify for the grant of a Category IV license for inter-state trading in electricity.

In addition, CERC also took into consideration that there were no objections received after ReNew Energy Markets published a notice in newspapers asking for suggestions or objections.

Nevertheless, for the grant of license to proceed, the following conditions must be met throughout the license term.

1. The company is required to abide by the Electricity Act, 2003, the Trading License Regulations, and all orders and directions from the Commission.
2. No transmission activities may be conducted by the company during the period of the subsistence of the license.
3. A trading margin should be charged strictly in accordance with Trading License Regulations as amended from time to time.
4. According to the CERC Regulations, 2012, the licensee should pay its annual license fee regularly.
5. If the company is not able to trade in electricity within a year from the date of the license, it will be liable for revocation as outlined in the Act and the Trading License Regulations.
6. All reports or information required by Trading License Regulations or any other regulation of the Commission issued from time to time must be submitted by the company.

The CERC amended its previous rules regarding the payment of electricity trading fees. As on April 01, 2020, the amended regulations came into effect.

Also, the CERC had previously published a notification addressing the procedure, terms, and conditions of granting electricity trading licenses.

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