CERC's issued power trading regulations include: 1)Procedure License acquisition 2)Technical Qualifications 3)Creditworthiness 4)Contraventions 5)Penalties

1. CERC (Procedures, Terms
and Conditions for grant
of license and other
related
matters)Regulations
By
Ravi Pohani

2. Contents
Requirements
to be a Trader
Procedure for
grant of
license
T&C of License
Contravention
and Penalties
Miscellaneous

3. Qualifications

4. Grant of License
Grant of License
Application to
CERC
Enclosure on
Applicant’s
website
Notification in
news papers
Affidavit of
notice of CERC
Address the
objections and
suggestions
License
granted and
public notice in
News Paper

5. T&C of the license Coordinate with RPC,
TU, LDCs
Adequate
Communication
Facilities
Trading Margins shall
not exceed
Shall not exceed
volume of
authorized trade
Comply to
present laws
Licensee Accounts
Separate
Entity
All
accounting
statement
s
Auditing
by
auditors/e
xperts
authorized
by CERC
Accounts
verificatio
n by CERC
auth.
Personnel

6. T&C cont.…
Informa
tion to
CERC
Frauds/Default/ insolvency
Transacti
ons
Annual
Report
Volume of
trade
Type of trading
license
Petitions filed
before commission

7. • Breech of code
• Significant change in circumstances which may affect ability to meet
obligations
• Any major change in shareholding pattern, management, ownership
Things to be Reported to the Commission

8. Contraventions by licensees
Contraventions
Serious
Violation of laws
Deliberate under
reporting of
transactions
Non Payment of
fee
Non-serious
Non submission/
delayed
submission of
prudential reports
Delayed monthly
transaction
reports
Failure to make
mandatory
disclosers

9. Penalties by Commissions
Penalties
Serious
Payment of =<Rs.
1 lk.. For each
contravention
Debar from
short/medium
term trading
Suspension for an
year
Revoke license
Non-serious
Warning
Issue of Other
such penal
directions
Penalty of =<1
Lakh

10. TIME LINE of LICENSE CATEGORIES
Category of License (according to
2004’s Notification)
F (>1000MU)
E (700-1000MU)
D (500-700MU)
C (200-500MU)
B (100-200MU)
A (<100MU)
Category of License (according to
2009’s Notification)
I (no limit)
II (<500MU)
III (<100MU)
Category of License (according to
2010’s Notification)
I (No Limit)
II (<1500MU)
III (<500MU)
IV (<100MU)

11. Thank-You