In the matter of the CERC (Procedures, Terms and Conditions for Grant of trading license and other related matters) Regulation of inter-State trading licence in electricity from Category ‘I’ to ‘V’ – EQ

Summary:

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### Order Overview

– **Petition No.**: 13/TD/2026
– **Date of Order**: 28th January, 2026
– **Petitioner**: Statkraft Markets Private Limited (formerly SN Power Markets Private Limited), New Delhi
– **Coram**: Shri Jishnu Barua (Chairperson), Shri Ramesh Babu V., Shri Harish Dudani, Shri Ravinder Singh Dhillon (Members)
– **Subject**: Application for down-gradation of inter-State trading licence from **Category ‘I’ to Category ‘V’** under the Electricity Act, 2003 and Trading Licence Regulations, 2020.

### Background of the Petitioner

– **Original Licence**: The company was granted a **Category-I** inter-State trading licence for the whole of India on **21.06.2012** (Petition No. 115/TDL/2012) under the Trading Licence Regulations, 2009.
– **Name Change**: The company’s name was officially changed from ‘SN Power Markets Private Limited’ to ‘Statkraft Markets Private Limited’ on **17.11.2014**.
– **Compliance History**: The Petitioner has regularly paid the annual licence fee for Category ‘I’ from FY 2012-13 to FY 2025-26.

### Reasons for Down-gradation

The Petitioner cited the following commercial reasons for seeking the downgrade:

– **Adverse market conditions** and severe competition in the power market.
– **Lack of expected growth** in the power trading sector.
– **Declining trading volumes** over recent financial years.
– Future business strategy intends to engage in trading activities **not exceeding 500 MUs annually**, which aligns with Category ‘V’ limits.

### Legal Framework & Regulatory Compliance

The application was made under the following regulations of the **Central Electricity Regulatory Commission (Procedures, Terms and Conditions for Grant of trading license and other related matters) Regulations, 2020**:

– **Regulation 9(4)**: Mandates that a trading licensee must apply for up-gradation or down-gradation to fulfill the conditions of the regulations.
– **Regulation 15(3)**: Specifies the procedure for down-gradation, including:
– Licensee may apply at any time (but cannot apply for upgradation within the same year).
– Must submit an **audited special balance sheet** to prove compliance with net worth requirements for the lower category.
– Must pay the **licence fee applicable** to the lower category (Category ‘V’).

### Financial Compliance & Net Worth Analysis

The Petitioner submitted an **audited special balance sheet as on 30.11.2025** to demonstrate financial eligibility for Category ‘V’.

**Category ‘V’ Requirements (Regulation 3(3)(a)):**
– **Net Worth**: Minimum **Rs. 2 crore**.
– **Current Ratio**: Minimum **1:1**.
– **Liquidity Ratio**: Minimum **1:1**.

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