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NCT Delhi - Section

Section 4 in The Delhi Electricity Reform Act, 2000

4. Financial requirements to qualify as an electricity trader.

(1)The applicant shall declare to the Commission the maximum trading volume the applicant proposes to handle in a year and its future plans of trading during the initial three years.
(2)Capital adequacy requirement and creditworthiness.-Considering the volume of intra-state trading proposed to be undertaken, the net worth of the electricity trader at the time of application shall not be less than the amounts specified hereunder
S.No. Category of the Trading Licence Volume of Electricity proposed to be traded (in Kilo-WattHours) per year Networth (Rupees in lakhs)
1. A Up to ten million Fifteen
2. B Ten to twenty million Thirty
3. C Twenty to fifty million Seventy five
4. D Fifty to seventy million One hundred
5. E Seventy to one hundred million One hundred fifty
6. F One hundred to two hundred million Two hundred
Provided that in case where the Trading volume reaches beyond two hundred million Kilo-Watt Hours per year, the capital adequacy and the credit worthiness for such trader shall be decided by the Commission, by general or special Order, as and when required.
(3)The trader shall make reasonable endeavours to maintain investment grade credit rating from an independent Credit Rating Agency throughout the period of the Licence.
(4)In case the volume of trade moves, at any stage, from lower category to higher category, the Licensee shall increase his net worth within a period of thirty days of such transition and shall pay the differential licensee fee to the Commission and the licensee shall inform the Commission of such transition and subsequent change in the net worth within thirty days.