Date:04/10/2005 URL: http://www.thehindubusinessline.com/2005/10/04/stories/2005100404310300.htm

Back CERC proposes cap on power trading margins

Our Bureau

New Delhi , Oct 3

THE Central Electricity Regulatory Commission (CERC) has proposed a cap on margins of power traders at 2 paise per unit of electricity traded.

In its draft regulations on fixation of trading margin, the regulator has said trading licensee shall not charge a trading margin exceeding 2 paise per unit on the electricity traded, including all charges except the charges for scheduled energy and open access.

The CERC is in the process of going through the suggestions and comments received by stakeholders in response to the draft regulations posted by the regulator. At present, power-trading companies are charging up to nearly 30 paise per unit from utilities as trading margin.

"The norms are aimed at regulating the levy of trading margins by electricity traders," a CERC official said.