Section 26 in Central Electricity Regulatory Commission (Power Market) Regulations, 2010
26. Membership in Power Exchange.
- (i) Membership in Power Exchange shall be of the following three categories :-(a)Member who is an Electricity Trader or(b)Member who is a distribution licensee including deemed distribution licensee or a grid connected entity or(c)Member who is neither an Electricity Trader nor distribution licensee including deemed distribution licensee nor a grid connected entity(ii)Member who is neither an Electricity Trader nor distribution licensee including deemed distribution licensee nor a grid connected entity can only provide the following services to its clients:-(a)IT infrastructure for bidding on electronic Exchange platform or skilled personnel(b)Advisory services related to power prices and the follow on bidding strategy (e.g. weather related information, demand supply position etc)(c)Facilitation of procedures on behalf of his client for delivery of power (e.g. State Load Despatch Centre standing clearances, coordination with National Load Despatch Centre etc)In no case, such a member shall provide any credit or financing or working capital facility to their clients.(iii)Member who is an Electricity Trader shall trade and clear on their own account or trade and clear on behalf of their clients. This category of members may provide any credit or financing or working capital facility to their clients.(iv)Member who is distribution licensee including deemed distribution licensee or grid connected entities shall transact and clear their own account only(v)The Power Exchange shall submit to the Commission detailed list of its members along with their clients every month as per the format appended to these Regulations.Provided that the Commission may, by order, review the format from time to time.(vi)In case of any discrepancies found in the transactions of members or contravention of these Regulations, the Commission may, after giving the member of the Power Exchange an opportunity of being heard in the matter, direct, the Power Exchange to revoke the membership of such member. Any such direction will be without prejudice to action against the Power Exchange under these Regulations.(vii)The Commission may direct Power Exchanges to introduce qualification test for personnel handling electronic trading terminals and trading in electricity.(viii)A Power Exchange may, at its discretion, stipulate any criteria for membership to the Power Exchange including networth, minimum base capital / security deposit requirement, liquid asset requirement.(ix)The Power Exchange shall maintain supporting documents provided by the member for obtaining membership including the documents evidencing compliance with any criteria specified by the Power Exchange and furnish it to the Commission on being required to do so. These documents shall be maintained upto a period of five years after the member has surrendered membership or ceases to be a member of the Power Exchange.(x)The Commission may by order, notify any additional membership criteria for transacting in derivatives contracts.
