Section 7 in The Central Electricity Regulatory Commission (Procedure, Terms and Conditions for Grant of Trading Licence and other Related Matters) Regulations, 2009
7. Obligations of the Licensee.
- The licensee shall be subject to the following obligations; namely:-(a)The licensee shall comply with the requirements of laws in force and, in particular, the Act, the Rules and the Regulations, Grid Code, orders and directions issued from time to time by the Commission and airy of the State Electricity Regulatory Commissions in accordance with law.(b)The licensee shall not exceed the volume of trading authorized under the licence, but may, in exceptional circumstances, undertake trading in electricity up to the maximum of 120 per cent of the volume of trade authorized under the licence granted to him:Provided that the licensee, on exceeding the volume of trading authorized in a year under the licence granted to him shall pay licence fee applicable to the higher category for that particular year:Provided further that the licensee may with the prior approval of the Commission and on such terms and conditions as the Commission may decide, exceed the specific limit of 120% in a year.(c)The licensee shall not charge any amount exceeding the trading margin for the inter-State trading in electricity, fixed by the Commission from time to time.(d)The licensee shall continue to be governed by the qualifications or disqualifications specified in these regulations for making an application for licence throughout the period of licence.(e)The licensee shall establish adequate communication facilities like telephone, fax, computer, internet facilities, before undertaking trading.(f)The licensee may coordinate with Regional Power Committees, the Central Transmission Utility, State Transmission Utilities, the Regional Load Despatch Centres, and the State Load Despatch Centres with regard to his trading related activities, to the extent authorised by the concerned buyer and seller.(g)The licensee shall render all assistance to any person authorised by the Commission to carry out his duties relating to the licence.(h)The licensee shall carry out trading in accordance with the agreed terms and conditions, and may take such safeguards as he may consider, necessary with regard to payment security mechanism from the buyers, but shall always ensure timely payment of dues to the seller for purchase of the agreed quantum of electricity either through a letter of credit or any other appropriate instrument or as may be mutually agreed between the seller and the licensee.(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.(j)The licensee shall ensure that there is no discrepancy or scope for dispute in the scheduling advised to the Regional Load Despatch Centre and in case of any discrepancy or ambiguity in the scheduling advice, the decision of the Regional Load Despatch Centre on the acceptance or otherwise of such advice shall be binding.(k)The licensee shall ensure that the buyer and the seller are, either grid connected entities or represent such entities, with special energy meters on their periphery and that the mechanism for Unscheduled Interchange accounting by the appropriate authority is in place.(I)The licensee shall not purchase electricity from the entities and the associates of such entities, defaulting in payment of Unscheduled Interchange charges, transmission charges, reactive energy charges, congestion charge and fee and charges for National Load Despatch Centre or Regional load Despatch Centre or the Unified Load Despatch and Communication Scheme or any other payment levied by the Commission or any of the State Commissions under the provisions of the Act or any regulation made thereunder, when so advised by the Commission.(m)The licensee shall regularly pay the licence for specified by the Commission from time to time.(n)The licensee shall not omit or neglect to undertake trading-activity.(o)The licensee shall not enter into any agreement for purchase or sale of electricity that may lead to abuse of his dominant position or enter into a combination which causes or is likely to cause an adverse effect on competition in electricity industry.(p)The licensee shall maintain up-to-date record of all the trading transactions undertaken by him, separately for bilateral transactions, inter-State as well as intra-State, and those through the power exchange.(q)The licensee shall make an appropriate application before the Commission for prior approval of the Commission whenever so required, in accordance with the Conduct of Business Regulations.(r)The licensee shall, subject to settlement of commercial terms in accordance with law, not omit sale of electricity to a consumer allowed open access by the concerned State Commission.
