TRADE RESULTS OF ESCERTS FOR WEEK 8

The eighth trading session of ESCerts took place today.

 

In total, there was a demand for 12,241 ESCerts, an increase of  of 6.25% from last week. This demand was against a total supply of 3,19,810 ESCerts (decrease of 26.7% since last week).  Market clearing price was determined at Rs 200/ ESCert (compared to Rs 350 last week), with 12,125 ESCerts sold (value traded reduced by 33%; the total traded value was Rs 0.24 crore).  The price of ESCerts has reduced to nearly 1/6th from where it started.

 
Source: IEX
A circular has been released by the Bureau of Energy Efficiency (BEE) instructing all the Designated Consumers (DCs) which had not achieved their energy saving targets to comply to their obligations as per PAT cycle-1 through purchase of ESCerts. The circular also mentions the penalty for non compliance as maximum Rs 10 lakh and the additional penalty to be incurred.

TRADE RESULTS OF ESCERTS FOR WEEK 7

The seventh trading session of ESCerts took place today.

In total, there was a demand for 11,521 ESCerts, a decrease of 45.23% from last week. This demand was against a total supply of 4,36,394 ESCerts (increase of 13.83% since last week).  Market clearing price was determined at Rs350/ ESCert (compared to Rs 500 last week), with 10,351 ESCerts sold (value traded reduced by 62%; the total traded value  was Rs 0.36 crore).  The price of ESCerts has reduced to nearly 1/4th from where it started.

 

 

 

Source: IEX

TRADE RESULTS OF ESCERTS FOR WEEK 6

The sixth trading session of ESCerts took place today.

 

In total, there was a demand for 21,037 ESCerts, a decrease of 50.23% from last week. This demand was against a total supply of 3,83,379 ESCerts (increase of 9.60% since last week).  Market clearing price was determined at Rs 500/ ESCert (compared to Rs 600 last week), with 19,359 ESCerts sold (value traded reduced by 61.08%; the total traded value  was Rs 0.97 crore).

Source: IEX

TRADE RESULTS OF ESCERTS FOR WEEK 5

The fifth trading session of ESCerts took place today.

In total, there was a demand for 42,271 ESCerts, a decrease of4.28% from last week. This demand was against a total supply of 3,49,806 ESCerts (increase of 8.29% since last week).  Market clearing price was determined at Rs 600/ ESCert (compared to Rs 800 last week), with 41,455 ESCerts sold (volume traded increased by a paltry 2.2%; the total traded value was Rs 2.48 crore – a reduction of 22.5%).

Source: IEX

TRADE RESULTS OF ESCERTS FOR WEEK 4

The fourth trading session of ESCerts took place today.

 

In total, there was a demand for 40,538 ESCerts, a decrease of 37.11% from last week. This demand was against a total supply of 3,81,443 ESCerts (increase of 9% since last week). Market clearing price was determined at Rs 800/ ESCert (compared to Rs 1,000 last week), with 40,148 ESCerts sold (volume traded reduced by 25% ; the total traded value was Rs 3.21 crore).

 
In today’s trade, the total demand was for 40,538 while total cleared volume was 40138 ESCerts. Only 0.97% demand was below the MCP. At Rs 800/ ESCert, the market seems to have found an equilibrium price, at least for the short term.

TRADE RESULTS OF ESCERTS FOR WEEK 3

The third trading session of ESCerts took place today.

In total, there was a demand for 64,459 ESCerts, an increase of 24.14% from last week. This demand was against a total supply of 3,48,587 ESCerts. Market clearing price was determined at Rs 1,000/ ESCert (compared to Rs 1,200 last week), with 43,078 ESCerts sold (almost twice the volume was cleared; the total traded value was Rs 4.30 crore).

TRADE RESULTS OF ESCERTS FOR WEEK 2

The second trading session of ESCerts took place today.

 

In total, there was a demand for 51,925 ESCerts which was higher than the demand last week by 2.01%. This demand was against a total supply of 2,36,031 ESCerts. Market clearing price was determined at Rs 1,200/ ESCert, with 23,295 ESCerts sold (more than twice the volume was cleared; the total traded value was Rs 2.79 crore).

 
Source: IEX analysis

Since a price benchmark was set during the first trading session last week, a lot more supply was bid at a lower price point. As a result, although the overall demand and supply remained the similar, the cleared volume was nearly double that of last week.

INDIA WITNESSES FIRST EVER TRADE OF ESCERTS

The first ever trading of energy saving certificates (ESerts) took place today.

 

The demand of ESCerts in this trading session was expected to be much lower than the supply because of the following reasons: 1) All sectors except one have overachieved on their energy savings targets resulting in an overall excess supply situation in the market; and 2) DCs were likely to wait and review the discovered price.

 

This week’s trading took place only on IEX. In total, there was a demand for 50,904 ESCerts, against a total supply of 2,39,644 ESCerts. Market clearing price was determined at Rs 1,200/ ESCert, with only 10,904 ESCerts sold (the total traded value was Rs 1.31 crore).

 
The IEXs trading report can be accessed here.

DETERMINATION OF FEE AND CHARGES PAYABLE UNDER REGULATION 12 OF THE CENTRAL ELECTRICITY REGULATORY COMMISSION (TERMS AND CONDITIONS FOR DEALING IN ENERGY SAVINGS CERTIFICATES) REGULATIONS, 2016:

In a recent order dated 24.03.2017, the apex electricity regulator CERC has finalised the fees and charges payable by the Designated consumers to the registry for the purpose of meeting the cost and expenses towards the management of registry and software platform.


The fees and charges determined through this order may be applicable upto Financial Year 2019-20  or as may be determined by the CERC in consultation with Registry and the Administrator


The Fees & charges applicable are tabled below:

 

With this, the only thing remaining to be approved are the exchange rules and charges for trading. Once that is done, all the procedural aspects to enable ESCerts trading will be completed. We expect trading to start sometime in the second half of April.


The link to the order can be found here.

APPROVAL OF PROCEDURES FOR TRANSACTIONS of ESCERTS:

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.

Procedure:

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.

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