CERC Releases New Regulation Guidelines For Cross Border Trade of Electricity

The Central Electricity Regulatory Commission (CERC), in accordance with the guidelines on import and export of electricity issued by the Ministry of Power earlier this year, has announced that it has released new guidelines for the smooth cross border trade of electricity.

These regulations will smear to the partaking entities in India and neighboring countries which are involved in cross-border trade of electricity with India. Cross-border trade of power between India and the neighboring countries will be permissible through mutual agreements between Indian entities and entities of the neighboring countries under the inclusive framework of CERC (Cross Border Trade of Electricity Regulations), 2019.

In case of three-party agreements, the cross-border trade of electricity across India will be permissible under the inclusive framework of two-pronged agreements signed between Government of India and the governments of the particular neighboring countries of the participating entities.

The Ministry of Power will be accountable for designating an authority to aid the process of approval and laying down the procedure for import and export of electricity. The elected authority will coordinate with any authority nominated by the concerned neighboring countries for all purposes related to cross border trade in electricity.

Significant Highlights:

  • Transmission Planning Agency shall be responsible for the planning of transmission system for the purpose of facilitating cross border trade of electricity and may coordinate with the Transmission Planning Agency of the concerned neighbouring country, wherever necessary. For India, this function shall be discharged by the Designated Authority.
  • Settlement Nodal Agency shall be responsible for settling all charges pertaining to grid operations including operating charges, charges for deviation and other charges related to transactions with a particular neighbouring country in the course of cross border trade of electricity. The Settlement Nodal Agency shall be a member of the deviation pool, reactive energy pool and other regulatory pools for payment and settlement of the corresponding charges in the pool accounts of the region having connectivity with any neighbouring country.
  • National Load Dispatch Centre shall act as the System Operator for cross border trade of electricity between India and the neighbouring countries and shall be responsible for granting short-term open access and for billing, collection, and disbursement of the transmission charges for short-term open access transactions in accordance with the Sharing Regulations.
Policies & Regulations | News published on 14/03/2019 by Moulin

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