CERC to Revoke GEPL’s Interstate Trading License

GEPL was found to be in non-compliance of CERC’s Payment of Fees Regulations

The Central Electricity Regulatory Commission (CERC) has issued a show cause notice to Global Energy Private Limited (GEPL), a category 1 interstate electricity trading license holder, regarding default in payment of fees for two successive financial years.

A category 1 interstate trading license holder is required to pay annual fees of Rs.4 million. Per CERC regulations such license holders must pay license fee within 30 days of the date of grant of license and after that annually by April 30 of each year. For any delay in payment beyond April 30, the license holder must pay surcharge calculated on a daily basis.

CERC found GEPL to be in non-compliance of its regulations as the company had not yet paid the fees for FY 2019-20 even after repeated communications. The CERC had also directed GEPL to approach the commission for re-categorization of its license based on its net-worth and volume of electricity proposed to be traded during a year, under the 2020 Trading License Regulations. The license holder did not respond.

CERC also found that GEPL hasn’t paid the fees for the ongoing fiscal FY 2020-21. CERC observed that GEPL willfully defaulted over a long time period as it did not heed any directive issued.

Per CERC norms, no license shall be revoked unless commission has given to the licensee three months’ notice, stating the grounds on which revocation is proposed. CERC has ordered GEPL to respond within two months of issue of this order regarding why its interstate trading license should not be revoked for willful default in depositing the license fee.

In case GEPL doesn’t respond within the two-month time period, its interstate trading license will be rescinded in October end, per the norms.