CERC issues final orders for inter-state power trading

To establish a market for cross-country power, Central Electricity Regulatory Commission CERC on Wednesday issued final orders for inter-state power trading prescribing minimum capitalisation norms and barring takeovers by other licensees without prior approval. The regulator has prescribed as many as six categories of licensees based on volume of electricity proposed to be traded, as per the guidelines posted on its web site. The regulations further permit trading on bilateral basis between generating company and electricity trader and between trader and distribution licensee. Licenses have a life of 25 years with application fee set at Rs 1 lakh. The CERC also prescribed minimum net worth criteria for various license categories ranging from Rs 1.5 crore to Rs 20 crore based on the amount of electricity proposed to be traded. It also permitted licensees to move from one category to another automatically, subject to a condition that the licensee adjusts his net worth and pays the differential amount. PTI