Flaying the National Power Exchange Ltd for not starting operations on time, power sector regulator Central Electricity Regulatory Commission (CERC)has served a show cause notice to the bourse seeking explanation for the delay even after getting approval three years ago.
National Power Exchange is promoted by state-run NTPC, NHPC and PFC, and Tata Consultancy Services, among others.
Central Electricity Regulatory Commission Chairperson Pramod Deo said a show cause notice has been issued to National Power Exchange seeking explanation for not starting its operations.
In its notice issued on 15 February, the regulator has cautioned that permission could be withdrawn if NPEX does not start operations within six months.
'It is observed that even after lapse of three years, since the in principle approval for setting up and operating a power exchange was granted... there is no progress for setting up and commencement of operation of the power exchange,' the notice said.
Central Electricity Regulatory Commission has also directed the exchange to place on record the progress made so far for setting up of the Power Exchange and definite action plan indicating the firm date of operation.
'If National Power Exchange is no more interested to set up the power exchange, the same should be indicated with reasons so that necessary action to withdraw the permission will be taken,' it said.
Besides, National Power Exchange has been directed to take up the matter with its board and intimate a firm plan for setting up the exchange to the Commission by 15 March.
Earlier, National Power Exchange had informed the Commission that promoters are cautiously examining the impact of short term market dynamics in the sector along with regulatory impact on the business proposition for setting up the exchange.
'The promoters are also examining various options through mutual discussion and interaction to evolve a prudent decision,' it had intimated the Commission.
Currently, there are two power bourses in the country — Indian Energy Exchange (IEX) and Power Exchange India Ltd (PXIL).
Power exchanges provide a platform for entities to buy and sell electricity and the overall segment has good growth potential.
National Power Exchange is promoted by state-run NTPC, NHPC and PFC, and Tata Consultancy Services, among others.
Central Electricity Regulatory Commission Chairperson Pramod Deo said a show cause notice has been issued to National Power Exchange seeking explanation for not starting its operations.
In its notice issued on 15 February, the regulator has cautioned that permission could be withdrawn if NPEX does not start operations within six months.
'It is observed that even after lapse of three years, since the in principle approval for setting up and operating a power exchange was granted... there is no progress for setting up and commencement of operation of the power exchange,' the notice said.
Central Electricity Regulatory Commission has also directed the exchange to place on record the progress made so far for setting up of the Power Exchange and definite action plan indicating the firm date of operation.
'If National Power Exchange is no more interested to set up the power exchange, the same should be indicated with reasons so that necessary action to withdraw the permission will be taken,' it said.
Besides, National Power Exchange has been directed to take up the matter with its board and intimate a firm plan for setting up the exchange to the Commission by 15 March.
Earlier, National Power Exchange had informed the Commission that promoters are cautiously examining the impact of short term market dynamics in the sector along with regulatory impact on the business proposition for setting up the exchange.
'The promoters are also examining various options through mutual discussion and interaction to evolve a prudent decision,' it had intimated the Commission.
Currently, there are two power bourses in the country — Indian Energy Exchange (IEX) and Power Exchange India Ltd (PXIL).
Power exchanges provide a platform for entities to buy and sell electricity and the overall segment has good growth potential.