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State of Bihar - Section

Section 3 in The Bihar Electricity Regulatory Commission (Licencing for Intra-State Trading in electricity) Regulations, 2007

3. Requirements of an Electricity Trader.

(1)Technical requirements for an Electricity Trader:
(a)Applicant shall have the following:
(i)experts and skilled staff with relevant qualification and experience in (1) power system, (2) finance, and commerce;
(ii)adequate space for office, communication facilities like telephone, fax, computer, internet facilities etc; and
(iii)own website to post all necessary information relating to his electricity trade:
(a)The applicant shall submit along with his application the following information to the Commission for assessment of his capabilities with regard to the resources deployed in his trade:
(i)the number of experts, summary of their qualifications, experience and knowledge in regard to electricity industry/market, their understanding of the operation of the system, commercial transactions and number of years of experience of each of the personnel.
(ii)details of key staff, their academic and technical qualification and business skills; and
(iii)details of office accommodation, communication facilities available and website.
(iv)copies of relevant documents in respect of items (i) to (iii) above.
(b)The applicant shall satisfy the Commission that his technical capacities and resources exhibited are sufficient to manage the activities pertaining to the Intra-State trading.
(c)The applicant shall comply with ail the technical requirements while applying for a licence for Intra-State trading in electricity.
(d)The Commission shall satisfy itself before granting Intra-State trading licence that the applicant has fulfilled all the above conditions required for grant of the trading licence.
(2)Financial requirements for a trader in electricity:
(a)Every applicant shall submit the following information to the Commission in regard to his financial requirement to show that he is capable of meeting the net worth requirement as per sub-regulation (c) below
(i)History of his earnings
(ii)Balance sheet and cash flow statement
(iii)Funding arrangements
(iv)Risk management strategy
(b)The applicant shall comply with the above financial requirements before applying for the grant of licence for Intra-State trading.
(c)The net worth requirement of an electricity trader at any time shall be not less than the following financial limits:
Category of the trading licence Annual volume of electricity to be traded Net worth requirement (Rs. Crores)
A Upto 50 Ml) 1.00
B Above 50 MU and upto 100 MU 1.50
C Above 100 MU and upto 200 MU 3.00
D Above 200 MU and upto 300 MU 4.50
E Above 300 MU and upto 400 MU 6.00
F Above 400 MU and upto 500 MU 7.50
G Above 500 MU and 10.00
The limits indicated above are subject to
(i)the licensee shall increase his net worth corresponding to the volume of trade increased from a lower limit to the next higher limit;
(ii)the change of category shall be based on the volume of trade as on 31st March each year;
(iii)the licensee shall keep the Commission informed of his moving from one category to another and the consequential changes in the net worth.