Section 7 in Central Electricity Regulatory Commission (Power Market) Regulations, 2010
7.
(1)An Exchange seeking permission under Regulation 6 shall submit to the Commission the complete and detailed contract specifications.(2)The Commission may, prior to granting such authorisation to Exchanges as specified in Regulation 6, examine the following and such other parameters of such contracts as considered appropriate having particular regard to the following :-(i)Type of contract (day ahead, term ahead etc);(ii)Price Discovery methodology and matching rules proposed;(iii)Transaction period - When transaction shall commence and for what tenure transaction session shall continue before delivery commences;(iv)Risk Management mechanism(a)Margining mechanism(b)Final Price Settlement mechanism(v)(a)Delivery mechanism(b)Delivery Duration - Delivery is for intraday, daily, week, month, particular season or year(vi)Penalty for Contractual Deviation (for Term Ahead Market) Contractual Deviation is the difference between the energy corresponding to contracted power and actual scheduled energy by the seller / buyer at point of injection respectively.Provided that during approval of any new type of contract, the complete contract specification shall be submitted to the Commission for approval. Thereafter modification in the specifications other than the above mentioned parameters can be done by the Exchange itself with intimation to the Commission within seven days of effecting the said modifications.
