CERC raises margin ceiling on inter-state power trading to 7 paise a unit
12 Jan 2010
The Central Electricity Regulatory Commission (CERC) has issued fresh regulations fixing the margin for inter-state trading in electricity at a maximum of 7 paise per unit while keeping the base rate at 4 paise per unit.
The new regulations will only apply to short-term buy - sell contracts for the inter-state trading, the power regulator said in a release.
As per the new CERC regulations, trading margin should not exceed 4 paise per unit if the sell price of electricity is less than or equal to Rs3 per unit. A higher trading margin of 7 paise per unit may be allowed in case the sell price of electricity exceeds Rs3 per unit, CERC said.
If more than one trading licensees are involved in a chain of transactions, the ceiling on trading margin may include the trading margins charged by all the traders put together.
This is to ensure that traders do not circumvent the ceiling by routing the electricity through multiple transactions, it said.
The new rates would come into force after a period of one month so that the existing contracts can be re-aligned by the parties, if required, it added.
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