Section 2 in Central Electricity Regulatory Commission (Power Market) Regulations, 2010
2. Definitions and Interpretation.
- (i) In these regulations, unless the context otherwise requires-(a)"Act" means the Electricity Act, 2003 (36 of 2003);(b)"Annual Turnover" means such turnover in Million Units of Electricity (MU) which is calculated considering the total number of units cleared in all types of transactions on a Power Exchange in a financial year.For example. - if a transaction of 10 MU is cleared , the turnover considered will be 10 MU only and not a cumulative addition of 10 MU as buy quantity and 10 MU as sell quantity of that transaction;(c)"Automated audit trail" means automated creation and maintenance of time-sequenced record of transactions (creation, modification or deletion) in the electronic trading system of Power Exchange for reference at later date/time;(d)"Board" means board of directors of a Power Exchange;(e)"Cartelization" means an act by market participants to form an association to control or attempt to control generation, distribution, sale or prices or transaction in electricity;(ea)[ "Collective Transaction" means a set of transactions discovered in power exchange(s) through anonymous, simultaneous competitive bidding by buyers and sellers. [Added by Notification No. L-1/13/2010/CERC, dated 12.12.2019 (w.e.f. 20.1.2010).](eb)"Continuous Transaction" means a transaction other than collective transaction, where the buy and the sell bids are matched on a continuous basis with price-time priority.](f)"Contract" means a contract for or relating to the purchase or sale of electricity or its related products;(g)"Clearing Corporation" means an organization which undertake clearing and financial settlement of all contracts transacted on an Exchange with which it is affiliated or any contracts transacted outside the Exchange in accordance with these regulations as amended from time to time;(h)"Clearing" means the process of determination of obligations of Members of Exchange resulting from conclusion of a transaction at an Exchange ;(i)"Client" means a person who executed an agreement with a Member of Power Exchange or Member of Clearing Corporation or Electricity Trader for dealing and /or clearing through such member or Electricity Trader ;(j)"Credit risk" means risk emanating in a contract due to change in financial condition of any of the contracting parties;(k)"Day ahead contract" means contracts where transaction occurs on day (T) and delivery of power is on the next day (T+1) and which are scheduled by Regional Load Despatch Centre or National Load Despatch Centre;(ka)[ "Day Ahead Market (DAM)" means a market for collective transactions of 'Day Ahead Contracts' through Power Exchange(s).] [Added by Notification No. L-1/13/2010/CERC, dated 12.12.2019 (w.e.f. 20.1.2010).](l)"Derivative Contract " means an electricity contract transacted in the OTC markets or Exchanges and that derives its value from an underlying asset in electricity (e.g. day ahead electricity contract or other spot market contract or other reference index);(m)"Electricity Trader" shall have the meaning assigned to it under sub section (26) of section 2 of the Act;(n)"Exchange" means a Power Exchange and Other Exchanges ;(na)[ "Gate Closure" in reference to Real-Time Market refers to the time after which the bids submitted to the Power Exchange cannot be modified for a specified delivery period.] [Added by Notification No. L-1/13/2010/CERC, dated 12.12.2019 (w.e.f. 20.1.2010).](o)[ "Intraday Contract/Contingency Contract" means the contract where the transaction (not being a collective transaction) occurs on day (T) after the closure of day ahead transaction window and the delivery of power is on the same day (T) except for the duration of the specified period of delivery of the real-time market, or next day (T+1) and which is scheduled by Regional Load Despatch Centre or National Load Despatch Centre.] [Substituted by Notification No. L-1/13/2010/CERC, dated 12.12.2019 (w.e.f. 20.1.2010).](p)"Load Despatch Centre" (LDC) means the National Load Despatch Centre (NLDC) or Regional Load Despatch Centres (RLDC) or State Load Despatch Centres (SLDC) as the case may be ;(q)"Market" means a forum / platform where buyers and sellers directly or through Electricity Trader , or through electronic Exchanges (including a Power Exchange) buy or sell electricity or its related products ;(r)" Market Splitting" is a mechanism adopted by Power Exchange where the market is split in the event of transmission congestion, into predetermined (by NLDC) bid areas or zones, which are cleared individually at their respective area prices such that the energy balance in every bid area is reached based upon the demand and supply in individual bid areas and using the available transmission corridor capacity between various bid areas simultaneously;(s)"Member of Power Exchange " means a person who has been admitted as such by a power Exchange in accordance with these regulations;(t)"Member of Clearing Corporation" means a person who has been admitted as such by the Clearing Corporation in accordance with these regulations;(u)"Member Service Charge" has the meaning assigned to it under Regulation 27;(v)"Networth" means aggregate value of the paid up equity capital and free reserves (excluding reserves created out of revaluation) reduced by the aggregate value of accumulated losses, deferred expenditure ( including miscellaneous expenses) not written off and loans and advances to the associates;(w)"Open position" means a buy or sell position when a transaction has been executed but the delivery or financial settlement has not been completed and where a person may remain exposed to price or credit or operational risk;(x)"Operational risk" means any risk emanating in a contract due to systems, processes, technology error or breakdown ,non scheduling of power due to technical reasons ;(y)"Other Exchanges" means such exchanges other than Power Exchange within the meaning of Regulation 3( iii) where contracts specified under Regulation 4 are transacted;(z)"Over The Counter (OTC)" shall have the meaning assigned to it as under Clause (i) of Regulation 3;(aa)"Position" means the financial and physical condition arising as a result of a buy or a sell action of a participant of the Exchange or OTC market;(bb)"Price risk" means any risk emanating in a contract due to change in price of the contract / asset during tenure of the contract;(cc)"Power Exchange" means the exchange registered under these regulations;(cca)[ "Real-time Contract" means the contract other than day ahead contract and intraday or contingency contract, where collective transactions occur on the day (T) or (T-1) after the right to revision of schedule ends for a specified delivery period during the day (T) and which are scheduled by Regional Load Despatch Centre or National Load Despatch Centre. [Added by Notification No. L-1/13/2010/CERC, dated 12.12.2019 (w.e.f. 20.1.2010).](ccb)"Real-Time Market" means a market for collective transactions of Real time Contracts through Power Exchange(s).](dd)"Reserves" means any part of shareholders' equity, except for basic share capital;(ee)"Safe Liquid Investment" means investments in liquid assets comprising of cash in hand, cash equivalents (Cash equivalents are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value) and demand deposits with banks;(ff)"Settlement Guarantee Fund (SGF)" means a fund maintained by the Power Exchange or Clearing Corporation used for settlement of defaults of its members as prescribed in the default remedy mechanism of Power Exchange or Clearing Corporation and may comprise of any sources of funds as may be determined by the Power Exchange or Clearing Corporation with prior approval of the Commission from time to time;(gg)"Settlement" means the process of discharging the obligations of members resulting from conclusion of a transaction at an Exchange ;(hh)Short term market means a market with contracts for a period not exceeding one year;(ii)"Spot Market" means a market where physical delivery of electricity occurs either on the same day as the date of the transaction (T) or on the next day (T+ 1);(jj)"Term Ahead market" means a market where physical delivery of electricity occurs on a date more than one day (T + 2 or more) ahead from the date of transaction (T) and the contracts in such market can be transacted weekly / monthly / yearly or more in advance and have a defined delivery period on expiry of contract and is scheduled by Regional Load Despatch Centre or National Load Despatch Centre;(ii)Save as aforesaid and unless repugnant to the context or if the subject-matter otherwise requires, words and expressions used in these regulations and not defined, but defined in the Act or other regulations made thereunder by the Commission shall have the meaning assigned to them in the Act or other regulations made by the Commission.Part - 2 Scope of Regulation and Extent of Application
