CERC (Terms and Conditions for Dealing in Energy Savings Certificates) Regulations, 2016

CERC recently came up with its final regulation on Terms and Conditions for dealing in Energy Saving Certificates. This regulation will govern and define the framework for ESCerts trading on power exchanges. A brief analysis is given below:
Final regulation
The final Regulations have defined responsibilities of the Registry and Administrator. The responsibilities defined for POSOCO and CERC are same as the draft regulation
Registry
The functions of the Registry shall be

• Registration of Eligible Entity.
• Maintaining records of ESCerts viz., issuance, dealing, etc.
• Dissemination of information in coordination with the Bureau.
• Assistance in development of IT Platform for maintaining database of ESCerts.
• Signing of Non Disclosure Agreement with the Administrator.

Administrator
The Bureau of Energy Efficiency shall act as the Administrator and shall define detailed procedure for the following

• Interface activities between Power Exchanges and Registry, Administrator and Registry and Registry and Designated Consumer
• Registration of eligible entities
• Dealing, transfer and other residual matters.

 
Dealing ESCerts:

• The ESCerts issued will be placed for dealing in any of the Power Exchanges by the ESCerts holder as per the PAT rules and these regulations.
•  The frequency of transaction of ESCerts, through Power Exchanges, shall be on monthly basis or in such periodicity as per the procedure approved by the Commission.
• The Registry shall cross-check the cumulative sale bids placed on Power Exchanges with availability of ESCerts in respective Registry accounts and in case of breach such eligible entities will be treated as defaulter.
• Eligible entities with more than three cases of default in a cycle shall be barred from transaction of ESCerts for next six months, notwithstanding any penalty due to be imposed.
• The denomination of one ESCert shall be equal to energy consumed in terms of one metric Ton of Oil Equivalent (mtoe).
•  The market price of ESCerts shall be as discovered through the process of bidding at the respective Power Exchange.

 
The final regulation can be accessed here.