In the matter of the CERC (Procedure, Terms and Conditions for Grant of trading license and other related matters), Regulations of an inter- State trading license – EQ

Summary:

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#### 1. Subject Matter
This petition is an application filed by **Energy Advisory Services Private Limited (EASPL)** under:
– **Sections 14 and 15(1) of the Electricity Act, 2003**
– **Regulation 6 of the CERC (Procedure, Terms and Conditions for Grant of Trading Licence and Other Related Matters) Regulations, 2020** (hereinafter “Trading Licence Regulations”)

The applicant seeks the grant of a **Category ‘V’ trading licence** for inter-State trading in electricity across India.

#### 2. Background & Hearing Summary
– The matter was initially heard on **February 26, 2026**.
– During the hearing, the Commission directed the Petitioner to furnish additional information/clarifications on four specific points before an order could be issued.
– The Petitioner filed compliance affidavits on **March 5, 2026** and **March 20, 2026**, addressing all the queries.
– After reviewing the compliance, the Commission issued this order, proposing to grant the licence subject to a final opportunity for public objections.

#### 3. Key Compliance Points Addressed

| Query | Petitioner’s Response | CERC Finding |
|——-|———————-|————–|
| **Full-time qualified professional** (Regulation 3(2)) | Ms. Sadhu Madhuri (MBA in Finance & HR, >5 years experience) serves as Finance Manager. Additionally, Mr. Sri Rama Chandra Murthy L. (B.E. Electrical, >18 years experience in power sector) is Regional Manager (South). | Requirement satisfied. |
| **Annual Report FY 2024-25** (Regulation 6(1)(b)) | Copies of Annual Report, audited financial statements, Directors’ Report, Auditors’ Report, Schedules, and Notes to Accounts for the year ended March 31, 2025, placed on record. | Requirement satisfied. |
| **Delay in publication of notice** (Regulation 6(3)) | Application registered on Dec 31, 2025; scrutiny completed on Jan 8, 2026; notice published on Jan 15, 2026 (8 days delay). No objections received. | Delay condoned; Petitioner directed to comply strictly in future. |
| **Non-engagement in transmission business** | Undertaking provided that the company will not engage in transmission business nor hold a transmission licence without surrendering the trading licence. | Undertaking accepted. |
| **Change of registered address** | New address: WeWork Enam Sambhav, C-20, G Block Rd, G Block BKC, Bandra Kurla Complex, Bandra East, Mumbai – 400051. | Noted. |

#### 4. Financial Eligibility (Category ‘V’ Trading Licence)

Under Regulation 3(1) and 3(3) of the Trading Licence Regulations, an applicant for a Category ‘V’ licence must have:
– **Net worth:** Minimum ₹2 crore
– **Current ratio:** Minimum 1:1
– **Liquidity ratio:** Minimum 1:1

Based on the **Special Audited Balance Sheet as of November 30, 2025**, the Petitioner’s financial position is:

| Parameter | Value (₹ in lakh) | Requirement | Status |
|———–|——————|————-|——–|
| Net Worth | ₹324.43 lakh (₹3.24 crore) | ≥ ₹200 lakh | ✅ Met |
| Current Ratio | 1.27 | ≥ 1.0 | ✅ Met |
| Liquidity Ratio | 1.27 | ≥ 1.0 | ✅ Met |

**Net Worth Computation:**

| Component | Amount (₹ in lakh) |
|———–|——————|
| Paid-up Equity Capital | 1.11 |
| Securities Premium Reserve | 15.23 |
| Surplus (Profit & Loss Account) | 308.08 |
| Free Reserves & Surplus | 323.32 |
| **Total Net Worth** | **324.43** |

#### 5. Authorisation to Undertake Trading
The Memorandum of Association (Clause A.3) authorizes the company to engage in:
– Building, owning, operating, buying, selling, and trading in energy
– Power stations, transmission systems, distribution systems, generating facilities
– Sale and purchase of energy

This satisfies the requirement under Regulation 3(1).

#### 6. Business Implications

**For Energy Advisory Services Private Limited:**
– Grant of the Category ‘V’ licence will permit the company to engage in **inter-State electricity trading**, opening new revenue streams in India’s growing power market.
– The company must maintain strict compliance with the Trading Licence Regulations, including:
– Maintaining prescribed net worth and liquidity ratios on an ongoing basis.
– Ensuring continued engagement of qualified professionals.
– Adhering to the undertaking not to engage in transmission business without surrendering the trading licence.
– Timely compliance with publication and reporting requirements.

**For the Electricity Trading Market:**
– The addition of a new licensed trader enhances competition and liquidity in the inter-State power market.
– Category ‘V’ licence holders are permitted to trade electricity across all five regions of India without volumetric restrictions, subject to compliance with trading margin and payment security norms.

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