GERC pegs intra-state trading margin upto 4 paise per unit

In order to encourage intra-state power trading business, state power sector regulator Gujarat State Electricity Regulatory Commission (GERC) has proposed an intra-state electricity trading margin of not more than 4 paise per unit.

The regulator has come out with regulations regarding fixation of margin for intra-state trading of electricity. The draft notification is called Gujarat Electricity Regulatory Commission (Fixation of Trading Margin Regulation), 2009.

"The trading margin shall not be more than 4 paise/kWh on the electricity traded, including all charges," states the GERC notification. However, this does not include scheduling energy and open access charges.

The commission has also invited comments, suggestions and objections from stakeholders and it will decide the trading margin after considering the suggestions of the stakeholders.

The margin and regulations are applicable to any player engaged in electricity trading within the state of Gujarat.

It may be mentioned here that Global Energy Ltd, a new Delhi-based power trading company, had sought permission from GERC for intra-state trading of power in Gujarat. The regulatory in one of its order had proposed to grant a license to the company for intra-state power trading.