The Central Electricity Regulatory Commission (CERC) has proposed granting a Category I trading license to Refex Energy Limited. The proposal comes after the company’s requested CERC to grant it a Category I license for inter-state trading of electricity across India.
During the review of the application, CERC found that Refex meets the net-worth requirements specified for a Category I trading license, as well as fulfills the other required trading license conditions.
The proposal is currently open for suggestions or objections. The CERC will then review the petition again on August 28, 2018 for further directions. Meanwhile, two other similar petitions were disposed without results.
Rajasthan Urja Vikas Nigam Limited had also petitioned for the grant of a Category I license for inter-state trading in electricity in India. However, when asked by CERC to respond with information regarding auditor’s report on its special balance sheet, the petitioner did not respond. CERC therefore dismissed the petition.
Moreover, the National Thermal Power Corporation (NTPC) had also petitioned the CERC to grant it an a Category-I inter-state trading license of electricity under CERC (Procedure, Terms and Conditions for grant of trading license and other related matters) Regulations, 2009.
When asked by CERC to respond with information regarding auditor comments on the special balance sheet, NTPC responded by saying that it is in process of finalizing the financial statement of the first quarter of 2018-19, and will then be able to submit the special balance sheet.
Later, NTPC sought permission to withdraw the petition with liberty to file a fresh petition on the subject. NTPC also requested CERC to adjust the filing fee deposited in the present petition to the petition to be filed in future. CERC has allowed NTPC to file a fresh petition in the future and has retained the fee paid for this application to be utilized for the next application.
CERC is the highest regulatory authority in the Indian electricity sector. Recently, CERC amended the regulations for the open access of interstate transmission, and also sets the national average power purchase cost (APPC) at ₹3.53 (~$0.0518)/kWh for open access.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.