The second Power Exchange India, promoted by National Stock Exchange (NSE) and National Commodity & Derivatives Exchange (NCDEX) will soon be a reality as the Central Electricity Regulatory Commission (CERC) on October 1 has given all the necessary regulatory clearances. In a significant move, CERC has allowed Power Exchange India to do trading of 1 mw during a day ahead of transactions. This will pave way for tapping 5,000 mw captive power capacity across the country.
Already financial technologies and PTC India promoted Indian Energy Exchange is functioning since June 27. Rupa Devi Singh, CEO told FE on Thursday that the exchange has already begun its mock trading and after disussion with its members, it is expected to launch operations within a week.
?CERC has given its clearance for all rules and bye-laws for the functioning of the power exchange. There are about 12 serious members with whom we will hold talks and hope to start our operations within a week. Our exchange can be accessed through Internet and the software has been developed inhouse. Gujarat Electricity Board, GMR and GSW hold 5% each equity and state-run Power Finance Corporation 7%. PFC has also been given professional clearing membership whereby PFC will provide liquidity support to the power purchaser.?
She informed that power exchange will introduce trading with day-ahead contracts (all 24 hours) and later more contracts will be launched.
CERC in its ruling made it mandatory for Power Exchange India that it would approach the commission for making any changes in exchange holiday, automated trading system or any other trading system and close trading in any one or all Contracts on the ATS or any other trading system of the exchange for one day.
Under the bye-laws the clearance/curtailment advice by the National Load Despatch Centre (NLDC) will not be binding and Central Transmission Utility, National Load Despatch Centre, Regional Load Despatch Centres and State Load Despatch Centres will not have any financial liability on account of inability, for any reason whatsoever, to achieve the complete matching between the advice of National Load Despatch Centre issued at 2 pm and the final schedules issued at 6 pm.
The power exchange will be responsible for payment of transmission charges, scheduling and system operation charges to NLDC, SLDCs, state transmission utilities as per the regulations specified by the Central Commission and State Commissions. In the event of default in payments by a member, the power exchange while utilising the margin money of such member from the Settlement Guarantee Fund for the purpose of settlement of dues shall give precedence to the payment of transmission charges, scheduling and system operation charges. Suitable provisions to that effect should be made in the rules/bye-laws of the power exchange.