CERC Accords Approval to New Power Exchange Proposal

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The Central Electricity Regulatory Commission (CERC) has approved Pranurja Solutions Limited’s request to be permitted to change its name and to set up and operate a power exchange, subject to the fulfilment of certain conditions laid by the commission.

In 2018, Pranurja petitioned CERC, seeking the grant of registration to establish and operate a power exchange under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010 (PMR 2010). In May 2021, the commission approved the request, subject to the compliance of its directions. In August, Pranurja petitioned CERC to show compliance with the earlier order and request for permission to commence operation of its power exchange.

A few days later, however, PMR 2010 was repealed and Commission (Power Market) Regulations, 2021 (PMR 2021) came into effect, as per which a power exchange granted registration by CERC under PMR 2010 shall deem to be registered under the PMR 2021. Thus, Pranurja’s power exchange was deemed to be filed under PMR 2021, and the petitioner was directed by CERC to align its rules, bye-laws, and business rules and other supporting documents in accordance with the PMR 2021 and to simultaneously initiate the stakeholders’ consultation. The commission also directed the Applicant to submit details on the proposed transaction platform, including the trading software.

In October, Pranurja filed an affidavit providing all the required documents as well as the proposed technology to be adopted for the operation of the Power Exchange. In its affidavit, the petitioner mentioned that it had added ‘Integrated Day Ahead Market (IDAM)’ in the list of proposed contracts to be launched at its platform. In December, Pranurja requested a change in its name to Hindustan Power Exchange Limited. During a hearing soon after, in response to CERC’s query regarding trading software and status of audit of its algorithm, Pranurja submitted that trial operations in respect of the trading software were ongoing at the time, and upon completion of the trial, the petitioner would furnish the audit of its algorithm.

Pranurja further submitted that, meanwhile, approval might be accorded to the Bye-Laws, Rules, and Business Rules, including the contracts, proposed to be introduced in order to enable the petitioner to initiate the discussion with generation companies/ distribution companies with regard to the membership at its Exchange.

Upon considering all the facts of the matter, CERC approved the new name Hindustan Power Exchange Limited (HPX) and stated, “The Commission has indicated its observations/ directions…The Petitioner is directed to amend its Business Rules, Rules, and Bye-Laws by appropriately incorporating these directions/ observations and publishing the same on the website of the HPX and also to intimate the Commission within fifteen days from the date of issue of this Order.”

CERC further ruled, “It is observed that HPX is required to seek the Commission’s approval on the transaction platform and its technical aspects in accordance with the Order dated 12.05.2021…Also, the Petitioner is required to get the algorithm audited before the commencement of the operations of the power exchange. Therefore, we direct the Petitioner to submit details on the proposed transaction platform, including the software to be used through a separate Petition. The Petitioner is also directed to get the algorithm audited in terms of…the PMR 2021 and furnish the results along with that Petition.”