The Bihar Electricity Regulatory Commission (Licencing for Intra-State Trading in electricity) Regulations, 2007

{
    "id": 15779,
    "slug": "the-bihar-electricity-regulatory-commission-licencing-for-intra-state-trading-in-electricity-regulations-2007",
    "title": "The Bihar Electricity Regulatory Commission (Licencing for Intra-State Trading in electricity) Regulations, 2007",
    "short_title": "The Bihar Electricity Regulatory Commission (Licencing for Intra-State Trading in electricity) Regulations, 2007",
    "act_number": "Published vide Notification No. 9/2007-No.BERC-Reg",
    "act_year": 2007,
    "act_type": "STATE",
    "location": "Bihar",
    "law_status": "unknown",
    "enactment_date": null,
    "description": "The Bihar Electricity Regulatory Commission (Licencing for Intra-State Trading in electricity) Regulations, 2007",
    "preamble": "",
    "section_label": "Section",
    "sections": [
        {
            "number": "1",
            "title": "1. Short title, extent and commencement.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 0
        },
        {
            "number": "2",
            "title": "2. Definitions and interpretation.",
            "chapter": null,
            "content": "(a) 'Act' means the Electricity Act 2003, (36 of 2003)\n(b) 'Agreement' means agreements(s) entered into by the Electricity Trader with the seller of electricity, buyer of electricity, other licensees etc, which enables trading transactions to take place.\n(c) 'Annual accounts' means the accounts of a trading licensee prepared in accordance with the provisions of the Companies Act, 1956 and/or in such manner as the Commission may direct in terms of provisions of the Act.\n(d) 'Area of activity' means the area of activity specified by the Commission in the licence within which the licensee is authorized to trade.\n(e) 'Applicant' means a person, who has made an application for grant of licence to the Commission under section 15 of the Act for intra-state trading in electricity.\n(f) 'Commission' means the Bihar Electricity Regulatory Commission.\n(g) 'Customer' means any person purchasing electricity from a trader and includes a distribution licensee, any trader and consumer.\n(h) 'Distribution' means conveyance or wheeling of electricity by means of a distribution system.\n(i) 'Force Majeure' means events beyond the reasonable control of the licensee, including, but not limited to earthquakes, cyclones, floods, storms, adverse weather conditions, war, terrorist attacks, civil commotion or similar other occurrence that leads to any act that involves a breach of relevant laws or Regulations related to electrical safety.\n(j) 'Grid Code' means the State Grid Code, specified by the Commission, covering all technical aspects relating to connections to the operation of the grid, the use of transmission system or the operation of electrical lines/plant connected to the transmission system/distribution system or the system of a supplier.\n(k) 'Intra - State trading' means trading in electricity within the territory of the State of Bihar by an electricity trader.\n(l) 'Licence' means a licence granted by the Commission under Section 14 of the Act to conduct licenced business of trading in electricity.\n(m) 'Other Business' means other business(es) of a trading licensee other than the licenced business.\n(n) 'Person' shall include any company or body corporate or association or body of individuals, whether incorporated or not, or artificial juridical person.\n(o) 'Specific conditions' means the conditions in addition to or invariation of the general conditions specified by the Commission to a trading licensee.\n(p) 'State' means State of Bihar.\n(q) 'Trading' means purchase of electricity for re-sale thereof and the expression trade shall be construed accordingly.\n(r) 'Trading licensee' means the licensee to whom a licence has been granted by the Commission under Section 14 of the Act for undertaking trading in electricity and includes a deemed licensee also.\n(ii) Unless the subject matter otherwise requires, the words and expressions used in these Regulations and not defined in the Act, Rules and the Regulations shall have the meaning assigned to them in the Act, Rules and Regulations.\n(iii) Words and phrases not defined in these Regulations Words and phrases used in these Regulations and defined in the Electricity Act, 2003 shall have the same meaning as defined therein. Words and phrases defined neither in these Regulations nor in the Electricity Act, 2003 but defined in other Acts and laws will have the meaning as defined therein unless the context requires otherwise. Words and phrases defined neither in these Regulations nor in any Act (or Law) shall have the same meaning as used in general electrical engineering practice and electricity industry.\n(iv) Interpretation. - In these Regulations, the following shall be interpreted as:\nInterpretation.\n(a) Words in the singular include the plural and vice versa .\n(b) Words in the masculine gender include the feminine gender and vice versa .\n(c) The terms \"include\" or \"including\" shall be considered as followed by \"without limitation\" or \"but not limited to\" whether they are actually followed by similar expressions or not in these Regulations.\n(d) References to these Regulations shall be construed as references to the Regulations as amended or modified from time to time.\n(e) The headings are inserted for convenience.\n(f) References to various Acts, Laws, Rules, Regulations and guidelines shall be construed as including all amendments notified thereto.",
            "footnote": "",
            "is_definition": true,
            "sort_order": 1
        },
        {
            "number": "3",
            "title": "3. Requirements of an Electricity Trader.",
            "chapter": null,
            "content": "(a) Applicant shall have the following:\n(i) experts and skilled staff with relevant qualification and experience in (1) power system, (2) finance, and commerce;\n(ii) adequate space for office, communication facilities like telephone, fax, computer, internet facilities etc; and\n(iii) own website to post all necessary information relating to his electricity trade:\n(a) The applicant shall submit along with his application the following information to the Commission for assessment of his capabilities with regard to the resources deployed in his trade:\n(i) the number of experts, summary of their qualifications, experience and knowledge in regard to electricity industry/market, their understanding of the operation of the system, commercial transactions and number of years of experience of each of the personnel.\n(ii) details of key staff, their academic and technical qualification and business skills; and\n(iii) details of office accommodation, communication facilities available and website.\n(iv) copies of relevant documents in respect of items (i) to (iii) above.\n(b) The applicant shall satisfy the Commission that his technical capacities and resources exhibited are sufficient to manage the activities pertaining to the Intra-State trading.\n(c) The applicant shall comply with ail the technical requirements while applying for a licence for Intra-State trading in electricity.\n(d) The Commission shall satisfy itself before granting Intra-State trading licence that the applicant has fulfilled all the above conditions required for grant of the trading licence.\n(a) Every applicant shall submit the following information to the Commission in regard to his financial requirement to show that he is capable of meeting the net worth requirement as per sub-regulation (c) below\n(i) History of his earnings\n(ii) Balance sheet and cash flow statement\n(iii) Funding arrangements\n(iv) Risk management strategy\n(b) The applicant shall comply with the above financial requirements before applying for the grant of licence for Intra-State trading.\n(c) The net worth requirement of an electricity trader at any time shall be not less than the following financial limits:\nCategory of the trading licence\nAnnual volume of electricity to be traded\nNet worth requirement (Rs. Crores)\nA\nUpto 50 Ml)\n1.00\nB\nAbove 50 MU and upto 100 MU\n1.50\nC\nAbove 100 MU and upto 200 MU\n3.00\nD\nAbove 200 MU and upto 300 MU\n4.50\nE\nAbove 300 MU and upto 400 MU\n6.00\nF\nAbove 400 MU and upto 500 MU\n7.50\nG\nAbove 500 MU and\n10.00\n(i) the licensee shall increase his net worth corresponding to the volume of trade increased from a lower limit to the next higher limit;\n(ii) the change of category shall be based on the volume of trade as on 31st March each year;\n(iii) the licensee shall keep the Commission informed of his moving from one category to another and the consequential changes in the net worth.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 2
        },
        {
            "number": "4",
            "title": "4. Capital adequacy and credit worthiness to qualify as a trader.",
            "chapter": null,
            "content": "(i) on the quantum of trade, which the trader is allowed by the Commission based on the business plan submitted by the trader;\n(ii) it shall correspond to the pool-rate of the power handled by the trader along with company expenses.\n(iii) trade risks on account of default in payment and change in price adjusted on six monthly basis by corresponding adjustments in the equity of the trader over and above the initial limit of capital adequacy fixed by the Commission.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 3
        },
        {
            "number": "5",
            "title": "5. Intra-State Trading by Deemed Licensee.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 4
        },
        {
            "number": "6",
            "title": "6. Procedure for grant of licence for Intra-State Trading.",
            "chapter": null,
            "content": "(1) (a) Any person who intends to carry Intra-State trading in electricity in the State of Bihar shall apply in the form in Annexure I to the Commission for grant of a licence in the manner specified by the Commission together with such prescribed fee as specified by the State Government, in shape of B.D. payable at Patna in favour of the Bihar Electricity Regulatory Commission.\n(b) The applicant shall furnish six (6) copies of all relevant documents in support of the information furnished by him.\n(2) (a) The Commission shall specify the condition for the grant of licence for intra-state trading in electricity and applicant shall abide by the conditions stipulated in the licence.\n(b) These conditions shall also apply to deemed licensee as defined under provision first, second, third and fifth to Section 14 of the Act.\n(3) The Commission may, in addition to the general conditions, specify any special conditions at the time of granting a licence which the applicant shall abide.\n(4) (a) While applying for grant of a licence for intra-state trading, applicant may suggest any modification(s)/to the conditions stipulated by the Commission, which shall be in the interest of the public.\n(b) The Commission shall consider the suggestion(s) made by an applicant under sub-regulation (a) above, if the Commission considers that the suggestion(s) made will be in public interest.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 5
        },
        {
            "number": "7",
            "title": "7. Obtaining additional information.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 6
        },
        {
            "number": "8",
            "title": "8. Publication of notice of application.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 7
        },
        {
            "number": "9",
            "title": "9. Objections.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 8
        },
        {
            "number": "10",
            "title": "10. Grant of Licence.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 9
        },
        {
            "number": "11",
            "title": "11. Refusal to grant a licence.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 10
        },
        {
            "number": "12",
            "title": "12. Term of the licence.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 11
        },
        {
            "number": "13",
            "title": "13. Compliances with Acts, Rules, Regulations etc.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 12
        },
        {
            "number": "14",
            "title": "14. Licence fee.",
            "chapter": null,
            "content": "(b) If the licensee fails to pay to the Commission the prescribed fee on the due date, the licensee shall be liable:\n(i) to pay to the Commission interest on the outstanding amount a simple interest at the rate of 1½ % per month or part thereof. The interest shall be payable for the period from the day on which the amount became due and ending on the day on which the Commission receives the payment; or\n(ii) to the proceedings for the recovery of such fees as stipulated in the Act in case of non-payment of fees and/or interest, as the case may be; or\n(iii) to revocation of his licence by the Commission under Section 19 of the Act; as the Commission deems fit.\n(c) The licensee shall be entitled to take into account any fee paid by him for determination of aggregate revenues made in accordance with sub-regulation (a) above but shall not take into account any interest paid in accordance with sub -regulation (b) (i) above.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 13
        },
        {
            "number": "15",
            "title": "15. Acts which a Licensee(s) shall not undertake.",
            "chapter": null,
            "content": "(a) any transaction to acquire, through purchase or takeover or otherwise, any utility of any other licensee; or\n(b) merge his utility with another utility of any other licensee.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 14
        },
        {
            "number": "16",
            "title": "16. Amendment, alteration etc to a Licence.",
            "chapter": null,
            "content": "(a) Where the licensee makes an application under sub-regulation (1) above proposing an alteration or amendment, the licensee shall publish a notice of such application with details and in such manner as may be specified by the Commission.\n(b) Where any alteration or amendment is proposed, otherwise than on an application, the Commission shall publish such alterations or amendments with such particulars as it may deem necessary.\n(c) Any alteration or amendments shall be made only after considering all the suggestions or objections received with-in thirty days from the date of publication of such notice.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 15
        },
        {
            "number": "17",
            "title": "17. Revocation of Licence.",
            "chapter": null,
            "content": "(a) Where a licensee makes willful or continuous default in doing any act required to be done by him under the Act or the rules/regulations made thereunder.\n(b) Where a licensee fails to observe any of the terms and conditions specified while granting the licence or any order/direction of the Commission.\n(c) When a Licensee fails, within the time allowed by the Commission:\n(i) to show to the Commission that he is in a position to fully and effectively discharge the duties and obligations imposed on him by the licence.\n(ii) to make a deposit or furnish security or pay fees or other charges required by his Licence\n(d) Where the Commission feels that the financial position of the licensee is such that he is not in a position to fulfill efficiently his duties/responsibilities/obligations imposed on him by his licence.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 16
        },
        {
            "number": "18",
            "title": "18. Settlement of Disputes and Arbitration.",
            "chapter": null,
            "content": "(ii) The Commission shall issue notices to all the concerned licensees indicating the details of the dispute(s) and after hearing the parties concerned, the Commission shall pass such order/direction as it may deem necessary.\n(iii) If any licensee is not satisfied with order passed by the Commission, the licensee may make a request to the Commission for appointment of an Arbitrator.\n(iv) On receipt of an application for appointment of an Arbitrator, the Commission shall appoint an Arbitrator under Section 86(f) of the Act duly indicating the terms and conditions of such appointment for settlement of the dispute(s).\n(v) The Arbitrator(s) nominated by the Commission, after hearing both the parties shall pass a speaking order giving reasons for the decision on all the issues raised in the dispute(s).\n(vi) The Commission, on receipt of the arbitration award shall communicate the award to the concerned parties for filing their views. After considering the views of the concerned parties, the Commission shall pass final orders, as it deems fit.\n(vii) The costs of arbitration shall be borne by the concerned licensees, as may be decided by the Commission.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 17
        },
        {
            "number": "19",
            "title": "19. Powers of Licensee.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 18
        },
        {
            "number": "20",
            "title": "20. Review.",
            "chapter": null,
            "content": "(i) for the purpose of harmonising the same with reference to open access and/or to cater to the needs of the developing power markets, in accordance with Section 66 of the Act; and\n(ii) Keeping in view the need for improving the performance of the licensees in public interest.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 19
        },
        {
            "number": "21",
            "title": "21. Enforcement of order passed by the Commission.",
            "chapter": null,
            "content": "(i) direct the licensee to take such action in respect of any matter arising out of the report as the Commission may think fit; under Section 129 of the Act; or\n(ii) revoke or suspend the business of the distribution licensee",
            "footnote": "",
            "is_definition": false,
            "sort_order": 20
        },
        {
            "number": "22",
            "title": "22. Service and publication of notice.",
            "chapter": null,
            "content": "Chapter 2\nDuties and obligations of an Electricity Trader",
            "footnote": "",
            "is_definition": false,
            "sort_order": 21
        },
        {
            "number": "23",
            "title": "23. Duties relating to trading transactions.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 22
        },
        {
            "number": "24",
            "title": "24. Duties relating to supply to customers.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 23
        },
        {
            "number": "25",
            "title": "25. Technical resources, Capital adequacy and Credit worthiness.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 24
        },
        {
            "number": "26",
            "title": "26. Payment of Annual Licence Fee.",
            "chapter": null,
            "content": "Chapter 3\nCompliances and information submission\n27.\n(b) any material breach of the provisions of the Act, rules and the regulations, directives/orders issued by the Commission, the State Grid Code, agreement or the licence; and\n(c) any major change in shareholding pattern, ownership or management of the trader.\nChapter 4\nAccounts of the Electricity Trader\n28.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 25
        },
        {
            "number": "1",
            "title": "1. Charged from or to any other business together with a description of the basis of that charge, and/or",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 26
        },
        {
            "number": "2",
            "title": "2. Determined by apportionment or allocation between the various business activities together with a description of the basis of the apportionment or allocation.",
            "chapter": null,
            "content": "Chapter 5\nMiscellaneous",
            "footnote": "",
            "is_definition": false,
            "sort_order": 27
        },
        {
            "number": "29",
            "title": "29. Prohibitions.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 28
        },
        {
            "number": "30",
            "title": "30. Contravention of terms and conditions of licence.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 29
        },
        {
            "number": "31",
            "title": "31. Saving.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 30
        },
        {
            "number": "32",
            "title": "32. Dispute resolution.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 31
        },
        {
            "number": "33",
            "title": "33. Issue of orders and practice directions.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 32
        },
        {
            "number": "34",
            "title": "34. Power to remove difficulties.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 33
        },
        {
            "number": "35",
            "title": "35. Power to amend.",
            "chapter": null,
            "content": "* See the Regulations of 2006 of even named and the Amending Regulations of 2009 Volume - 4, Page 682 & Volume - 8 Page 1051 respectively.\nAnnexure I\nAnnexure I\nApplication Form for Intra State Trading Licence\nApplication Form for Intra State Trading Licence\n(See Regulation 6 (1))\nPart - A\nGeneral Information of Applicant\na. Full Name of the Applicant\nb. Full Address of the Applicant :\nc. Name, Designation & Address of the Contact Person :\nd. Contact Telephone Numbers :\nFax Number(s):\nEmail ID:\na. Company / Firm / Co-op Society / Individual /Others :\nb. Details of Incorporation / Registration :\nPlace of Incorporation / Registration :\nYear of Incorporation :\nRegistration Number :\nc. Names and Addresses of Directors / Partners / Governing Body members / trustees\nd. Permanent Account Number allotted by Income Tax Department\na. Nature of other electricity licenses / authorization, if any, of the applicant for electricity transmission, distribution or trading already granted:\na. Maximum trading volume proposed to be undertaken by the applicant on a monthly basis for the first three years; (In Million units and capacity)\na. Management capability\nb. Financial strength\nc. Ability to attend to the activities in a sustainable manner\nSignature of the Applicant\nPart B\nList of Documents to Accompany Licence Application\n(a) Information relating to pre-existing licence (if any), with copy of licence/sanction\n(b) Certificate of Incorporation/Registration\n(c) Certificate of commencement of Business\n(d) Original Power of Attorney of the Signatory to commit the Applicant or its Promoter.\n(e) Articles of Association, Memorandum of Association and similar constitutional documents\n(f) Details of Income Tax registration, PAN / TAN.\n(a) Managerial\n(i) Senior management's curriculum vitae\n(ii) Cadre strength for different categories (technical and nontechnical)\n(b) Financial\n(i) Bank references asserting that the Applicant is financially solvent\n(ii) Annual Audited Reports for the past 5 years for the Applicant and for any Holding Company, Subsidiary or affiliated company (if any).\n(c) Any other document, evidence to substantiate the financial capabilities, technical competence and others.\n(a) Approach and Methodology (Applicant is required to describe Approach and Methodology for establishment of the Trading arrangements as proposed by the Applicant)\n(b) Business plan (with 5 years projection) for the proposed business for which licence is sought (which should contain year wise anticipated growth in trade volumes, metering plan, treatment of previous losses, debt restructuring plan, projected profit and loss account, projected balance sheets, projected cash flow statements and projected important financial parameters).\n(c) Five year annual forecasts of costs, sales, revenues, project financing and funding arrangements (clearly specifying the assumptions involved)\nSignature of the Applicant\nPart C :\nFormat for Assessing Competence of Applicant\n(This form to be filled by an Applicant applying for a Trading licence)",
            "footnote": "",
            "is_definition": false,
            "sort_order": 34
        },
        {
            "number": "1",
            "title": "1. Previous Experience (Past 5 years details for Related Business)",
            "chapter": null,
            "content": "General Information\nGeneral Information\nDoes the applicant have previous\n\t\t\t\texperience in electricity trading?\nIf yes, Specify location (State / Country)\nYes / No\nDoes the applicant have trading\n\t\t\t\texperience in any other related sector?\nIf yes, name the sector Specify location? (State / Country)\nYes / No\nDetails of electricity trading in the last 5 years -\n\t\t\t\tCommercial Operations\nDetails of electricity trading in the last 5 years -\n\t\t\t\tCommercial Operations\nYear 1\nYear 2\nYear 3\nYear 4\nYear 5\nTrading volume at\n\t\t\t\tvarious voltage levels (Million Units)\nTrading volume at\n\t\t\t\tvarious voltage levels (Million Units)\nBulk trade Retail trade\nNumber of Ongoing\n\t\t\t\tContracts with details\nNumber of Ongoing\n\t\t\t\tContracts with details\nBulk trade Retail trade\nBulk trade (Nos.\n\t\t\t\tand Quantum)\nBulk trade (Nos.\n\t\t\t\tand Quantum)\nEnd consumers Re-sellers(s)/Trader(s)\nEnd consumers Re-sellers(s)/Trader(s)\nRetails trade\n\t\t\t\tConsumer Base (Nos. and Quantum)\nRetails trade\n\t\t\t\tConsumer Base (Nos. and Quantum)\nHigh Tension Low Tension\nHigh Tension Low Tension\nRevenue from\n\t\t\t\telectricity trading (Rs. Lakhs)\nRevenue from\n\t\t\t\telectricity trading (Rs. Lakhs)\nBulk trade Retail trade\nBulk trade Retail trade\nDetails of trading in other sectors during the last 5 years -\n\t\t\t\tCommercial Operations\nYear 1\nYear 2\nYear 3\nYear 4\nYear 5\nTrading volume\n\t\t\t\t(________Units)\nTrading volume\n\t\t\t\t(________Units)\nBulk trade Retail trade\nRevenue from\n\t\t\t\ttrading (Rs. Lakhs)\nRevenue from\n\t\t\t\ttrading (Rs. Lakhs)\nBulk trade Retail\n\t\t\t\ttrade\nBulk trade Retail\n\t\t\t\ttrade\nNumber of Ongoing\n\t\t\t\ttrading Contracts with details\nNumber of Ongoing\n\t\t\t\ttrading Contracts with details\nBulk trade Retail trade\nBulk trade Retail trade\nFinancial Information (Rs. lakhs)\nYear 1\nYear 2\nYear 3\nYear 4\nYear 5\nEquity.\nPromoters' Government/\n\t\t\t\tFinancial Institutions Public Others\nLiabilities\nLong Term Short Term\nIncome\nElectricity trading Others\nExpenses\nAdministration and\n\t\t\t\tGeneral Expenses Employee Cost Depreciation\nInterest and Financial Charges\nLong\n\t\t\t\tTerm Short Term\nOthers\nProfits and Returns\nNet Profits Dividends Paid",
            "footnote": "",
            "is_definition": false,
            "sort_order": 35
        },
        {
            "number": "2",
            "title": "2. Details of Proposed Trading Activity (Business for which licence is sought)",
            "chapter": null,
            "content": "Funding\nFunding\nWhether applicant himself shall be financing the proposed\n\t\t\t\ttrading fully on its own balance sheet\nYes / No\nProposed means of Finance\nEquity (Rs.\n\t\t\t\tLakhs) Applicant Co-promoters Others (specify)\nDebt\nDomestic (Rs.\n\t\t\t\tLakhs) Indian Financial Institutions Commercial\n\t\t\t\tBanks Others (specify) International (FC\n\t\t\t\tMillion) Supplier's Credit Direct Borrowing Others\n\t\t\t\t( specify ) Equivalent INR (with Exchange rate used)\nOthers ( specify )\nIn case trading activity is\n\t\t\t\tproposed to be jointly funded along with External Agency\nName and\n\t\t\t\tAddress of the Agency, and contact details of the reference\n\t\t\t\tperson of the Agency (name, address, telephone/fax numbers, email\n\t\t\t\tetc.,)\nProposed\n\t\t\t\tEquity from the Agency (Rs. Lakhs)\nAgency's\n\t\t\t\tequity as a percentage of total equity (%)\nNature of proposed tie-up between\n\t\t\t\tApplicant and the other agency.\nDetails of debt proposed for\n\t\t\t\ttrading activity\nDetails of\n\t\t\t\tLenders (name & address).\nDetails of\n\t\t\t\tLoan packages indicating the loan amount, currency, Term of loan,\n\t\t\t\tinterest rate, up-front fees, Commitment charges etc.\nWhether any\n\t\t\t\tguarantee is being sought for the loans from any agency.\nIf Yes, provide details\nYes/ No\nMinimum level of communication\n\t\t\t\tinfrastructure available\nAny other (specify)\nTelephone/Fax/Internet/V-Sat\nNote : - Consent letters of the other Agency and Contractors to associate with the Applicant for the above project to be enclosed.\nNote :\nNecessary approvals and no objection certificates to be obtained at appropriate time and forwarded to the Commission.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 36
        },
        {
            "number": "3",
            "title": "3. Qualifications and Expertise (Personnel)",
            "chapter": null,
            "content": "Name of personnel\nName of personnel\nQualification\nQualification\nSpecialisation\nSpecialisation\nYears of experience\nYears of experience\nStatus in the firm\nStatus in the firm\n1.\n1.\n2.\n2.\n3.\n3.\n4.\n4.\n5.\n5.\nNote : Atleast one full time professional, having experience in each of the disciplines like Power Systems Operation, Finance should be part of the Core team.\nNote :\nKnowledge and understanding of power systems operation (covering generation availability, capacity utilization, demand, plant load factor, flow of electricity etc), power market operations, commercial arrangements(PPAs, BSA, TSA, etc) and communication and scheduling of power (load dispatch are required)",
            "footnote": "",
            "is_definition": false,
            "sort_order": 37
        },
        {
            "number": "4",
            "title": "4. Revenue Potential (Business for which licence is sought)",
            "chapter": null,
            "content": "General Information\nGeneral Information\nDetails of Target Bulk consumers\nEnd\n\t\t\t\tconsumers Reseller(s)/Trader(s)\nRetails consumer base (Nos.)\nHigh Tension Low Tension\nTrading of electricity (expected\n\t\t\t\tannual)\nBulk Trade\nExpected\n\t\t\t\tquantum (MU) Anticipated demand growth (%)\nRetail Trade\nExpected quantum (MU) Anticipated\n\t\t\t\tdemand growth (%)\nCommercial Information\nCommercial Information\nExisting Average Tariff (Rs./ Unit)\nBulk supply\n\t\t\t\ttariff Retail supply tariff\nHigh tension Low tension\nFinancial Information\nFinancial Information\nAnnual expected turn over (Rs. Lakhs)",
            "footnote": "",
            "is_definition": false,
            "sort_order": 38
        },
        {
            "number": "5",
            "title": "5. Financial Soundness (Other Subsidiary Business Units)",
            "chapter": null,
            "content": "General Information\nGeneral Information\nNames of Subsidiary Business Units 1. 2. 3. 4. 5.\nProducts Manufactured/ Services 1. 2. 3. 4. 5.\nBanker's details\nBanker's details\nDetails of Bank Accounts\nName and\n\t\t\t\tAddress of the Bank Account Number\nContract person & details\nName of the\n\t\t\t\trepresentative Designation Contact numbers e-mail ID\nFinancial Indicators\nFinancial Indicators\nYear 1\nYear 1\nYear 2\nYear 2\nYear 3\nYear 3\nYear 4\nYear 4\nYear 5\nYear 5\nFixed Assets\nGross Fixed Assets Accumulated\n\t\t\t\tDepreciation Net Fixed Assets\nEquity\nPromoters' Government/\n\t\t\t\tFinancial Institutions Public Others\nLiabilities\nLong Term Short Term\nIncome\nSale of Power Others ( specify )\nExpenses\nAdministration\n\t\t\t\tand General Expense Repairs and Maintenance Employee\n\t\t\t\tCost Depreciation Interest and Financial Charges\nLong\n\t\t\t\tTerm Short Term\nOthers ( specify )\nFinancial Indicators\nFinancial Indicators\nYear 1\nYear 1\nYear 2\nYear 2\nYear 3\nYear 3\nYear 4\nYear 4\nYear 5\nYear 5\nOverall Turnover (Rs. Lakhs)\nProfits and Returns (Rs. Lakhs)\nNet Profits Dividends Paid\nOperating Ratios\nReturn on Equity Return on\n\t\t\t\tCapital Employed Return on Net Fixed Assets\nLiquidity Ratio\nDebt Service\n\t\t\t\tCoverage Ratio Current Ratio\nQuick Ratio\nCapital Adequacy and Credit\n\t\t\t\tWorthiness\nDebt/ Networth Debt/ Equity\nTurnover Ratio\nTotal Asset Turnover Fixed\n\t\t\t\tAsset Turnover",
            "footnote": "",
            "is_definition": false,
            "sort_order": 39
        },
        {
            "number": "6",
            "title": "6. Baseline Information (Business for which licence is sought)",
            "chapter": null,
            "content": "Commercial Information\nCommercial Information\nMetering Status Total\n\t\t\t\tinterconnection points\nUnmetered interconnection\n\t\t\t\tpoints Consumers with TOD meters Metered retail\n\t\t\t\tconsumers Unmetered retail consumers Consumer with TOD\n\t\t\t\tmeters\nBilling Status\nBilling (as a % of Total Input)\nBilling (as a % of Total Input)\nLoss Commercial loss (%)\nNote:\nNote:",
            "footnote": "",
            "is_definition": false,
            "sort_order": 40
        },
        {
            "number": "1",
            "title": "1. Certificates/documents in support of all the credentials detailed above, from the Owner/Client for whom the project were promoted should be submitted along with the application.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 41
        },
        {
            "number": "2",
            "title": "2. Wherever conversion factor is used (for currency conversion and others), mention the conversion factor used for this purpose.",
            "chapter": null,
            "content": "Signature of the Applicant\nAnnexure II\nAnnexure II\nFormat and Conditions of Licence of an Electricity Trader Licence granted for Trading in electricity\nFormat and Conditions of Licence of an Electricity Trader Licence granted for Trading in electricity\n[See Regulations 10(2)]\nPart-I\nDefinitions\n1.\n2.\n(a) \"accounting statement\" means for each financial year, accounting statements for the licensed business comprising a profit and loss account, a balance sheet and a statement of sources and application of funds, together with notes thereto as detailed under the Companies Act, 1956 (1 of 1956) or the respective Acts under which the licensee is governed and such other particulars and details in the manner as the Commission may prescribe from time to time. If the trading licensee engages in any business or activity in addition to the licensed business, the accounting statements shall comply with the regulations of the Commission dealing with the treatment of other business of trading licensees and show specifically the amounts of any revenue, cost, asset, liability, reserve or provision, which has been either:\n(i) charged from the licensed business to any other business or vice versa together with a description of the basis of that charge; or\n(ii) determined by apportionment or allocation between the licensed business and any other business of the licensee together with a description of the basis of the apportionment or allocation.\n(b) \"Act\" means the Electricity Act, 2003 (Act 36 of 2003)\n(c) \"agreement\" means agreement entered into by the electricity trader with the seller of electricity, buyer of electricity, other licensees, State Load Despatch Centre, consumer etc. that enables the trading transactions;\n(d) \"annual accounts\" means the accounts of the licensee prepared in accordance with the provisions of the Companies Act, 1956 and/or in such other manner as may be directed by the Commission in terms of the provisions of the Act;\n(e) \"area of activity\" means the area of activity stated in schedule to the trading licence within which the licensee is authorised to trade;\n(f) \"auditors\" means the licensee's auditors holding office in accordance with the requirements of Sections 224 to 234A or Section 619 as appropriate, of the Companies Act 1956 (1 of 1956);\n(g) \"authorised\" , in relation to any person, business or activity, means authorised by licence granted under Section 14 of the Act or deemed to be granted under the first, second, third and fifth proviso to Section 14 of the Act or exemption granted under Section 13 of the Act and the Regulations of the Commission;\n(h) \"Commission\" means the Bihar Electricity Regulatory Commission;\n(i) \"Conduct of Business Regulations\" means the Bihar Electricity Regulatory Commission - Conduct of Business Regulations for the time being in force;\n(j) \"customer\" means any buyer purchasing electricity from the trader, viz. distribution licensee, any other trading licensee and any customer that the licensee gets into a sale agreement with.\n(k) \"Force Majeure\" means events beyond the reasonable control of the licensee, including, but not limited to earthquakes, cyclones, floods, storms, adverse weather conditions, war, terrorist attacks, civil commotion or other similar occurrences that leads to any act that would involve a breach of relevant laws or regulations concerned with electrical safety;\n(l) \"licence\" means a licence granted under Section 14 of the Act;\n(m) \"licensee\" means a person who has been granted a licence under Section 14 of the Act;\n(n) \"licensed business\" means the business of trading of electricity in the area of activity as authorised under the licence;\n(o) \"open access\" means the non-discriminatory provision for the use of transmission lines or distribution lines or transmission systems or distribution systems or associated facilities with such lines or systems by any licensee or customer or a person engaged in generation in accordance with the Regulations specified by the Commission;\n(p) \"person\" shall include any company or body corporate or association or body of individuals, whether incorporated or not, or artificial juridical person;\n(q) \"regulations\" means the regulations made by the Commission, under the provisions of the Act;\n(r) \"State\" means the State of Bihar;\n(s) \"State Government\" means the Government of the State of Bihar;\n(t) \"subsidiary\" shall have the same meaning as in Section 4 of the Companies Act 1956 (1 of 1956);\n(u) \"supply\" in relation to electricity means the sale of electricity to a licensee or consumer;\n(v) \"Electricity Supply Code\" means the Code published by the Commission under Section 50 of the Act;\n(w) \"trader\" means a person who has been granted a licence or deemed to be a licensee to undertake trading in electricity under Section 14 of the Act;\n(x) \"trading\" means purchase of electricity for resale thereof and the expression \"trade\" shall be construed accordingly;\n(y) \"trading business\" means the authorised business of the trading licensee in the area of supply;\n(z) \"transfer\" shall include the sale, exchange, gift, lease, licence, loan, securitisation, mortgage, charge, pledge or grant of any other encumbrance or otherwise permitting of any encumbrance to subsist or parting with physical possession or any other disposition or dealing;\n(aa) \"transmit\" means conveyance of electricity by means of transmission lines and the expression \"transmission\" shall be construed accordingly;\n(ab) \"transmission licensee\" means a licensee authorised to establish or operate transmission lines;\n(ac) \"transmission system\" means the system consisting mainly of extra high voltage electric lines having design voltage of 66 kV and higher, owned or controlled by the transmission licensee, and used for the purposes of the conveyance of electricity and includes all bays/equipments upto the interconnection with the distribution system, and any plant, apparatus and meters owned or used in connection with the transmission of electricity, but shall not include any part of a distribution system;\nPart-II\nGeneral Conditions",
            "footnote": "",
            "is_definition": false,
            "sort_order": 42
        },
        {
            "number": "3",
            "title": "3. Terms of the Licence.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 43
        },
        {
            "number": "4",
            "title": "4. Compliance with Laws, Rules, and Regulations.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 44
        },
        {
            "number": "5",
            "title": "5. Duties of the Trading Licensee.",
            "chapter": null,
            "content": "(a) undertake any transaction to acquire by purchase or takeover or otherwise, the utility of any other licensee in its area of activity; or\n(b) acquire any beneficial interest in any generating company or generating station or distribution licensee or any other trading licensee; or\n(c) merge its utility with any other licensee within the State; or\n(d) assign its licence, or transfer its utility, or any part thereof, by sale, lease, exchange or otherwise.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 45
        },
        {
            "number": "6",
            "title": "6. Accounts.",
            "chapter": null,
            "content": "(a) prepare on a consistent basis from such accounting records and deliver to the Commission\n(i) the accounting statements;\n(ii) in respect of the first six months of each financial year, a half yearly profit and loss account, cash flow statement and balance sheet together with such supporting documents and information as the Commission may prescribe from time to time such statements and documents to be published in the manner prescribed by the Commission;\n(iii) in respect of the accounting statements prepared, an auditor's report for each financial year, stating whether in their opinion these statements have been properly prepared in accordance with this clause and give a true and fair view of the revenues, costs, assets, liabilities, reserves and provisions of, or reasonably attributable to such businesses to which the statements relate; and\n(iv) a copy of each half yearly profit and loss account not later than three months after the end of the period to which it relates, and copies of the accounting statements and auditor's report not later than six months after the end of the financial year to which they relate.\n(a) be prepared and published with the annual accounts of the trading licensee, in the manner provided herein;\n(b) state the accounting policies adopted;\n(c) be prepared in accordance with generally accepted Indian accounting standards; and\n(d) be prepared in the form as the Commission may stipulate from time to time;",
            "footnote": "",
            "is_definition": false,
            "sort_order": 46
        },
        {
            "number": "7",
            "title": "7. Provision of Information to the Commission.",
            "chapter": null,
            "content": "(a) submit a report to the Commission giving full details of the facts within the knowledge of the licensee regarding the incident and its cause; and\n(b) give copies of the report to all parties concerned with such incident and to such other persons as the Commission may direct.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 47
        },
        {
            "number": "8",
            "title": "8. Capital Adequacy, Credit Worthiness Norms to be Maintained.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 48
        },
        {
            "number": "9",
            "title": "9. Payment of Licence Fees.",
            "chapter": null,
            "content": "(a) without prejudice to other obligations, the licensee shall be liable to pay interest on the outstanding amount at a simple interest rate of 1.5 (one & half) percent, the interest being payable for the period beginning on the day after which the amount became due, and ending on the day on which the payment is made to the Commission in cleared funds; and\n(b) in the event of continued default by the licensee, the Commission may revoke this licence pursuant to Section 19 of the Act and Regulation 18 of the Regulations.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 49
        },
        {
            "number": "10",
            "title": "10. Amendment of Licence Conditions.",
            "chapter": null,
            "content": "(a) where the licensee has made an application under sub-section (1) of Section 18, of the Act proposing any alteration or modifications to the terms and conditions of licence, the licensee shall publish a notice of such application with such particulars and in such manner as specified in Regulation 8 of the Regulations;\n(b) in the case of an application proposing alterations or modifications in the area of activity comprising the whole or any part of any cantonment, aerodrome, fortress, arsenal, dockyard or camp or of any building or place in the occupation of the Government for defence purposes, the Commission shall make any alterations or modifications only with the consent of the Central Government; the Commission shall not make any alterations or modification unless all suggestions or objections received within thirty days from the date of the first publication of the notice have been considered.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 50
        },
        {
            "number": "11",
            "title": "11. Settlement of Disputes.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 51
        },
        {
            "number": "12",
            "title": "12. Tariff, Trading Margins and Expected Revenue Calculation.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 52
        },
        {
            "number": "13",
            "title": "13. Compliance and Submission of Information to State Load Despatch Centre & Central Electricity Authority.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 53
        },
        {
            "number": "14",
            "title": "14. Prudential Reporting.",
            "chapter": null,
            "content": "(a) Any significant changes in its circumstances which may affect the licensee's ability to meet its obligations under the Act, Rules and Regulations Directions/Orders issued by the Commission, the Bihar Electricity Grid Code, agreement or the licence.\n(b) Any material breach of the provisions of the Act, the Rules and the Regulations, Directives/Orders issued by the Commission, the Bihar Electricity Grid Code, the Bihar Electricity Distribution Code, the Bihar Electricity Supply Code, agreement or the licence.\n(c) Any major change in shareholding pattern, ownership or management of the licensee.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 54
        },
        {
            "number": "15",
            "title": "15. Communication.",
            "chapter": null,
            "content": "(a) when delivered in person to the addressee or to his authorised agent;\n(b) on expiry of fifteen days from the date of sending by registered/speed post at the address of the addressee.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 55
        },
        {
            "number": "16",
            "title": "16. Introduction of Competition in Trading.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 56
        },
        {
            "number": "17",
            "title": "17. Application of the General Conditions to Deemed Licensees.",
            "chapter": null,
            "content": "Schedule",
            "footnote": "",
            "is_definition": false,
            "sort_order": 57
        }
    ],
    "metadata": {
        "Act ID": "bh496",
        "Act Number": "Published vide Notification No. 9/2007-No.BERC-Regulations - 1/2007, Bihar Gazette (Extraordinary) No. 1072, dated 4th December, 2007",
        "Enactment Date": "",
        "Act Year": "2007",
        "Short Title": "The Bihar Electricity Regulatory Commission (Licencing for Intra-State Trading in electricity) Regulations, 2007",
        "Type": "STATE",
        "Location": "Bihar"
    },
    "updated_at": "2026-09-29 21:55:19"
}