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Recently IEX & PXIL have asked CERC for approval of addition in their energy trading volume capacity. Indian Energy Exchange Limited (IEX) has asked commission for approval of additional Term Ahead contracts and Green Term Ahead Contract (GTAM) beyond T+11 days. Whereas Power Exchange India Limited (PXIL) has asked commission for approval of introduction of months ahead contracts in their portfolio.
In context of the above, both petitioners highlighted that with due reference of the letter received from Ministry Of Power (MoP) dated 10.07.2020, wherein MoP has observed that CERC & SEBI may take necessary action in their respective areas of jurisdiction as per report of the committee on “Efficient Regulation Of Electricity Derivatives”. Though the above order is subject to outcome of decision by the Hon’ble Supreme Court Of India on the jurisdiction for the subject matter.
In view of the matter IEX & PXIL has asked commission that they may initiate the process of approval for more energy trading volume addition so that IEX/PXIL can start their consultation with different stakeholders in this regard.
After hearing all petitioners final submission, commission has observed that since the issue of jurisdiction to control and to regulate the further/ forward and derivative contracts in electricity is still pending consideration before Hon’ble Supreme Court Of India, the decision of commission in this regard will be subject to Supreme Court’s final verdict.
Thus PXIL & IEX still have to wait until Supreme Court Of India’s final verdict for addition in their energy trading volume.