Draft Central Electricity Regulatory Commission (Power Market) Regulations, 2020.
CERC has notified the Draft Power Market Regulations, 2020. Key takeaways:
1. Introduction of forward contracts on Power Exchanges with mandatory physical delivery;
2. Introduction of OTC Platforms to allow technology driven price dissemination for the buyers and sellers in the OTC Market;
3. Enabling provisions for Market Coupling among the Power Exchanges;
4. Minimum market share requirement for Power Exchanges has been removed;
5. Net worth requirement for Power Exchanges has been increased to Rs. 50 crores;
6. Ownership and governance norms for Power Exchanges have been strengthened;
7. Clearing and settlement function of Power Exchanges to be done in accordance with provisions of the RBI;
8. Enhanced provisions for market oversight by the Commission;
9. Flexibility in the introduction of new bid types by Power Exchanges;
10. Exchange fee charged by Power Exchanges will be regulated by the Commission.
