End of 10-yr-old dispute paves way for power reforms: Govt

Resolution of the jurisdiction issue between market regulator SEBI and electricity regulator CERC, will further deepen the power market and pave the way for the introduction of longer duration delivery-based contracts on exchanges, the Power Ministry said on Thursday.

The statement came a day after the Supreme Court disposed of the long-pending matter between the SEBI and the CERC regarding regulatory jurisdiction of electricity derivatives.

"10 years long pending jurisdictional issue related to power market between CERC (Central Electricity Regulatory Commission) and SEBI (Securities and Exchange Board of India) resolved by Supreme Court,” the ministry said in a statement.

It mentioned that the power sector had been waiting for the big reforms for more than 10 years which were held up due to the jurisdiction issues between the two regulators.

On October 6, the longpending matter between SEBI and CERC regarding regulatory jurisdiction of Electricity Derivatives has finally got resolved with the Supreme Court favourably disposing of the matter in terms of the agreement reached upon by the SEBI and the CERC, the ministry said.

This will further deepen the power market from the present level of approx. 5.5 per cent of the volume to the targeted volume of 25 per cent by 2024-25.

This has opened the gate for introduction of longer duration delivery-based contracts on the power exchanges which has been currently restricted to only 11 days due to the pendency of the case, the ministry informed.

This will enable discoms and other large consumers to plan their short-term power procurement more efficiently.