Section 7(i) in The Central Electricity Regulatory Commission (Procedure, Terms and Conditions for Grant of Trading Licence and other Related Matters) Regulations, 2009
(i)The licensee shall ensure that appropriate agreement for purchase and sale of electricity are entered into by him with sellers and the buyers prior to scheduling a transaction, and that the agreement shall specify the following namely:-(i)the boundaries, that is to say, upper and lower MW limits of electricity to be purchased or sold,(ii)modalities for scheduling,(iii)persons authorized to specify the schedule, or to modify it after it has been intimated to the Regional Load Despatch Centre or the State Load Despatch Centre.(iv)whether the buyer or the seller can unilaterally advise modification of the schedule, or whether the modification can only be advised jointly by the buyer and the seller,(v)the liabilities of the parties (seller, buyer and licensee) in case the scheduled quantum (MW) and time of scheduling differs from the agreed terms, or in case of modification in schedule, and in the latter case, the party that will bear non-refundable part of short term open access charges.
