The Hindu Business Line : APERC drafts regulation for electricity traders

THE Andhra Pradesh Electricity Regulatory Authority (APERC) has formulated a draft regulation specifying the technical requirements, capital adequacy requirement or credit worthiness for being an electricity trader in the State, and the duties of the electricity trader, as required under section 52 of the Electricity Act 2003.

The commission has invited suggestions from the interested parties on the draft regulation. They should reach its office by September 17, 2004.

The salient features of the proposed regulation are:

- The trade must have experts with necessary qualifications in power systems operations, finance and commerce and skilled staff to discharge commercial transactions.

- The trade should have a net worth of Rs 1 crore if the proposed monthly volume of trade is less than five million units (MU), Rs 2 crore if the trade volume is between five and 10 MU, Rs 4 crore if trade is 10-20 MU, Rs 6 crore if trade is 20-30 MU, Rs 8 crore if trade is 30-40 MU, Rs 10 Crore if trade is 40-50 MU. And if trade is more than 50 MU per month, the net worth should be monthly trade. - The applicant for trading licence should pay the application fees as specified by the State Government.

- The trader should pay an annual licence fee of Rs 50,000 if projected monthly volume of trade is up to five MU, Rs 1 lakh if the volume is 5-10 MU, Rs 2 lakh if trade is 10-20 MU, Rs 3 lakh if the trade is 20-30 MU, Rs 4 lakh if trade is 30-40 MU, Rs 5 lakh if trade is 40-50 MU. The licence fee for trade above 50 MU is also based on the total volume trade.

- The trader shall file the details in the manner as may be specified by the commission.

- The trader should maintain a separate account for the trading business in accordance with the Companies Act 1956.

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