Petition No. 166/ MP/2011. Case: In Re : Power Exchange of India Ltd. Vs. Central Electricity Regulatory Commission

Case NumberPetition No. 166/ MP/2011
JudgesDr. PramodDeo, Chairperson, Shri S. Jayaraman, Member, Shri V.S. Verma, Member and Shri M. Deena Dayalan, Member
IssueElectricity Law
Judgement DateNovember 17, 2011
CourtCentral Electricity Regulatory Commission


1. Regulation 36 of the Central Electricity Regulatory Commission (Power Market) Regulations, 2010 (hereinafter "Power Market Regulations") mandates the Power Exchanges to have their Exit Scheme duly approved by the Commission for closure of the running contracts or succession plan for all transacted contracts in the event of closure of the power exchange. Regulation 36 of Power Market Regulations is extracted as under:

36. Exit Scheme - The Power Exchange shall have their Exit Scheme approved by the Commission during the registration process detailing the manner in which the running contracts on the Power Exchange shall be closed or the succession plan for all transacted contracts in case of closure of Power Exchange, cancellation or withdrawal of registration under these regulations. Thereafter the Exit scheme shall be provided in the byelaws of the Power Exchange.

Provided that the Power Exchanges operating on the date of notification of these regulations, shall submit to the commission the exit scheme for approval within a period of one year. Consequently the bye laws shall be modified.

2. The petitioner came into operation prior to the date of coming into force of the Power Market Regulations. In compliance of the proviso to Regulation 36 of Power Market Regulations, the petitioner submitted its Exit Scheme on 21.7. 2011 for approval of the Commission. After hearing the petitioner on 8.9.2011, the Commission in its order dated 18.9.2011 had issued the following directions:

3.....On examination of the Exit Scheme submitted by the petitioner, it is observed that the proposed scheme broadly conforms to the requirements of Regulation 36 of Power Market Regulations. However, the Commission is of the view that the petitioner should incorporate the following points in the Exit Scheme:

(a) Scenario envisaging voluntary closure of Power Exchange by the shareholders.

(b) A provision to the effect that process of Closure under the Exit Scheme shall be without prejudice to compliance of the provisions of the Companies Act or any other law in force with regard to winding up of the company.

4. The petitioner is directed to submit the modified Exit Scheme incorporating the above within a period of 15 days from the date of issue of this order.

3. In compliance with the above directions, the petitioner has submitted a modified Exit Scheme on 4.10.2011. After detailed examination of the modified Exit Scheme, we are of the view that the scheme...

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