Section 4(ii) in Central Electricity Regulatory Commission (Power Market) Regulations, 2010
(ii)Financially settled electricity derivatives contracts transacted in OTC market - It is a contract which derives its value from an underlying asset (e.g. day ahead electricity contract or other spot market contract or other reference index). The contract price is fixed at the time of transaction. The final financial settlement price is based on the spot price of the underlying asset or any other predefined reference index as agreed between the parties at the expiry of contract. These contracts can be Derivative Contracts, swap and other structured contracts etc.
