In the matter of the CERC (Procedure, Terms and Conditions for grant of trading licence and other related matters), Regulations of ISTL in electricity from Category ‘V’ to Category ‘IV’ – EQ

Summary:

—

# **1. Purpose of the Petition**

Energyedge Power Trading Pvt. Ltd. filed an application under Sections **14** and **15(1)** of the Electricity Act, 2003 and Regulations **15(1)** & **9(4)** of CERC Trading Licence Regulations, 2020 seeking:

➡️ **Upgradation of its existing Inter-State Trading Licence
from Category V → Category IV.**

The company cited improved market conditions, growth in power trading, and plans to trade up to **2000 MUs annually**, consistent with Category IV trading limits.

—

# **2. Background**

* Energyedge was originally granted a **Category V trading licence** on **18 September 2023** (Petition 195/TD/2023).
* As per Trading Licence Regulations, licensees may apply for upgradation when their expected trading volume exceeds the limit of the existing category.

—

# **3. Proceedings (Hearing on 30 October 2025)**

* Counsel for Energyedge reiterated that the company meets **all technical, financial, and regulatory criteria** for Category IV.
* They committed to paying the **differential licence fee** applicable for the upgraded category.

—

# **4. Legal & Regulatory Framework Considered**

CERC evaluated the petition under:

* **Regulation 9(4)** – permits upgradation upon application.
* **Regulation 15(1)** – sets conditions for licence upgradation.
* **Regulation 3(3)(a)** – prescribes **net worth requirement: ₹10 crore** for Category IV.

—

# **5. Financial Eligibility Assessment**

### **Net Worth Requirement: ≥ ₹10 crore**

As per **Special Audited Balance Sheet dated 31 August 2025**, CERC computed:

| Financial Metric | Value |
| ——————- | —————- |
| **Net Worth** | **₹12.47 crore** |
| **Current Ratio** | **1.20** (≥1) |
| **Liquidity Ratio** | **1.16** (≥1) |

Both ratios meet the regulatory thresholds of the Trading Licence Regulations, 2020.

—

# **6. CERC’s Analysis & Findings**

CERC found that:

✔ Energyedge **fully meets** the technical, legal & financial requirements for Category IV.
✔ Net worth exceeds the ₹10 crore requirement.
✔ Application complies with Regulation 15(1) for upgradation.
✔ The company has provided all necessary documentation including special audited balance sheet.

—

# **7. Order of the Commission**

CERC **approved the upgradation** of the company’s Inter-State Trading Licence:

### **Category V → Category IV**

**Effective immediately from the date of the order (8 Nov 2025).**

Additional directions:

1. **Licence fee** for Category IV must be paid **within one month**.
2. Licensee remains bound by all conditions of the original licence (Order dated 18.9.2023).
3. CERC will issue an **endorsement** reflecting the new licence category.
4. A copy of the order will be sent to:

* Ministry of Power
* Central Electricity Authority

—

# **8. Business Implications**

### **For Energyedge Power Trading Pvt. Ltd.**

* Can now undertake **higher trading volumes (up to 2000 MUs/year)**.
* Gains greater market flexibility and competitiveness.
* Must maintain higher financial thresholds consistently.

### **For Power Markets**

* Enhanced participation from private trading firms boosts competition.
* Supports deeper liquidity in bilateral and exchange-based markets.

### **For CERC**

* Reinforces regulatory oversight ensuring only financially strong players upgrade trading categories.

—

For more information please see below link: