Trader to Trader sale of electricity not permissible: CERC

New Delhi, Aug 8 (UNI) Central Electricity Regulatory Commission (CERC) has restrained PTC India Ltd from buying power from any other electricity trader, including GRIDCO, terming all such existing contracts as "null and void" as they were in contravention of Inter-State Trading Regulations of the Commission.

The Commission gave the order while disposing of the petition filed by Mr Gajendra Haldea against PTC India Ltd.

Clarifying the meaning of the term 'Agreement' appearing in the regulations for Inter-State Trading, the Commission said a trade 'agreement' necessarily excludes the electricity traders from being seller of electricity to another trader.

An electricity trader can buy electricity from a generating company or a distribution licensee, and in turn, sell the same to a distribution licensee. This has been the clear intention of the Commission while issuing the regulations, it said.

The Commission also agreed with the contention of Mr Haldea that the prices of electricity can be artificially jacked up by two more more traders joining hands. However, in order to avoid any uncertainty or dislocation of the existing trading arrangement, it ordered that the distribution utilities buying power from respondent PTC India Ltd, sourced from GRIDCO or other similar entity, should enter into agreements directly with GRIDCO or other similar entity, latest by August 22, 2006.

In case the distribution utilities concerned exercised the transfer option, the transmission corridors booked by PTC India Ltd, shall be transferred in the former's name by the Regional Load Dispatch Centres.

UNI SD RA PM1617