The Central Electricity Regulatory Commission (CERC) has introduced the “Central Electricity Regulatory Commission (Cross-Border Trade of Electricity) (First Amendment) Regulations, 2023.” These regulations have come into force from December 26, 2023. These regulations aim at improving the efficiency and transparency of cross-border electricity transactions.
Definition Update: Settlement Nodal Agency Charge
The amended regulations introduce a definition for “Settlement Nodal Agency Charge” or “SNA Charge.” This term is now defined as the charge payable to the Settlement Nodal Agency (SNA) by participating entities located in neighbouring countries for fulfilling mandated functions.
Chapter 5: Payment of Charges and Payment Security Mechanism
Clause Modification in Regulation 30
A notable amendment is made to the method of payment of transmission charges and other charges. The revised clause now reads as follows:
“Settlement Nodal Agency may recover from the participating entities located in the neighbouring countries SNA charge of 0.50 paisa (Half paisa)/kWh on the energy scheduled, and shall formulate a suitable payment security mechanism for the charges to be collected by it.”
This modification empowers the Settlement Nodal Agency to collect a charge of 0.50 paisa per kilowatt-hour (kWh) on the energy scheduled from participating entities in neighbouring countries. Additionally, it mandates the formulation of an effective payment security mechanism to facilitate the collection of these charges.
Strengthening Cross-Border Electricity Transactions
The amendments aim to fortify the regulatory framework governing cross-border electricity trade. By introducing the Settlement Nodal Agency Charge and specifying its collection mechanism, the CERC aims to ensure the smooth functioning of cross-border transactions and foster greater cooperation among participating entities.