The trading of ESCerts is going to start soon as CERC has come up with new regulations on ESCerts which facilitates their transition from one eligible entity to another. ESCerts come under the Perform, Achieve and Trade (PAT) scheme which is a market based mechanism where ESCerts are issued on over achieving targets and they have to be purchased by underachievers to meet their compliance.
ESCerts have been issued to many designated consumers in February and the first PAT cycle took place in March 2015.
Registration of designated consumers is as per the instructions written in the CERC report on detailed procedure for registration of designated consumer with registry as Eligible Entity on 14th February 2017.
The procedure is applicable to designated consumers:
ESC registration procedure follows the following steps:
Registry through PAT-Net PORTALis the forum at which application of registration takes place. Application shall be in electronic and paper form.
Within seven days, the registry shall provide a unique ID and seek clarifications if any.
This application shall be accessed on the basis of eight criterions
If payment of charges and fees has been done, the registry will issue a certificate of Registration.
The issuance of ESCerts shall be done by the Ministry of Power (MoP) and registry will complete the verification of the same on the basis of Dynamic- Customer Relationship Management.
The following are the features of the ESCerts issued:
The ESCerts will be issued in electronic form
ESCerts that have been issued in a cycle period shall stay valid till the completion of compliance period of their next PAT cycle unless otherwise revoked prior to such validity period in pursuance of conditions for revocation.
In case if ESCerts are purchased by designated consumers, they shall remain valid till the completion of compliance period of next PAT cycle or until the submission to administrators.
Bilateral trading within the same corporate group is not permitted and accordingly, inter-sector self retention and transfer of ESCerts is not permitted.
Trading of ESCerts- A separate Dynamic-Customer Relationship management (D-CRM) will be developed and maintained by Administrator.
Fees and Charges:
All designated consumers applying to become “Eligible Entity” shall pay the fees & charges (as
notified by commission from time to time) towards the following:
(i) One Time Registration Fee
(ii) ESCerts Fee to be paid by Designate Consumers to whom ESCerts are issued have
been issued by Ministry of Power.
The regulation can be accessed here.