Professional Documents
Culture Documents
Category I No Limit
• Marketing
• Commercial
• Regulatory
• Financial
• Advisory
How Financial Settlement of a trade is
done?
• For Day Ahead Collective Transactions- Financial settlement is done by electronic
transfer of funds between the clearing members & the Exchange. The proceeds from
sale of power are transferred to members settlement account by 2 P.M of the day
following the day of delivery by power exchange. The fund transfer to clients account is
either through electronic money transfer system or by issuing cheque as preferred by
the client. The buyers have to pay the amount of power purchased at MCP by 14.30
Hours on the day of bidding.
• For Bilateral Transactions-Invoices for the energy charges shall be raised as per
billing cycle. The relevant bills will be raised based usually on the provisional
weekly energy data for the energy at delivery point based on RLDC/SLDC website
data. Financial Settlement will be done in accordance with any rebate/surcharge,
as and when applicable, and shall include SLDC Scheduling & Handling charges,
T&D charges, CSS and Open Access charges, if any.
What is the trading margin cap by
Hon’ble CERC?
• Depending on the contracted price for a
bilateral deal, CERC has capped the trading
margin that can be maximum charged as
follows:
Sale Price (Rs./KwH) Margin (Rs./kWh)
• Price Discovery over bilateral route, through a trader, is done as per requirements
of seller and the buyer, on negotiated basis or as discovered in a tender process
What would be the tentative landed cost at the consumers’
periphery while purchasing power from the Power Exchange?
Particular Unit
Distribution Loss 9 %
RPOs, put simply, are the REC is a tradable certificate of proof that one MWh of electricity
has been injected (or deemed to have been injected) to grid by an RE generator.
The Electricity Act, 2003, the policies framed under the Act, as also the National Action Plan
on Climate Change (NAPCC) provide for a roadmap for increasing the share of renewable in
the total generation capacity in the country. However, Renewable Energy (RE) sources are
not evenly spread across different parts of the country. This inhibits SERCs in states with
poor RE generation source from specifying higher Renewable Purchase Obligation (RPO). On
the other hand states with high potential of RE sources harness the RE potential beyond the
RPO level fixed by the SERCs.
The REC mechanism seeks to address this mismatch between availability of RE sources and
the requirement of the obligated entities to meet their RPO.
There are two categories of RECs, viz., solar RECs and non-solar RECs. Solar RECs are issued
to eligible entities for generation of electricity based on solar as renewable energy source,
and non-solar RECs are issued to eligible entities for generation of electricity based on
renewable energy sources other than solar. Obligated entities can purchase these RECs in
order to fulfil their RPO.
How are RECs issued to a RE generator?
• RECs are tradable only at the Power Exchanges at the market determined
price. REC trade at IEX is done on the last Wednesday of every month. The
present applicable floor and forbearance price for REC trading are as