--- title: "CERC Issues Draft Cross Border Trade of Electricity Second Amendment Regulations, 2024" date: 2025-02-06 author: "King Stubb & Kasiva" url: https://ksandk.com/newsletter/cerc-cross-border-trade-of-electricity/ --- # CERC Issues Draft Cross Border Trade of Electricity Second Amendment Regulations, 2024 Posted On - 6 February, 2025 • By - King Stubb & Kasiva ## Introduction The Central Electricity Regulatory Commission (CERC) has issued the draft Central Electricity Regulatory Commission (Cross Border Trade of Electricity) (Second Amendment) Regulations, 2024, on December 31, 2024.[[1]](#_ftn1) This amendment seeks to update the existing regulations governing the cross-border trade of electricity in India, primarily by incorporating changes related to General Network Access (GNA) and Temporary General Network Access (T-GNA). These updates align with the Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022, ensuring a more structured and efficient mechanism for cross-border electricity trade. ## Explanation (Key Points) **1. Changes in Terminology and Definitions** - The amendment replaces “long-term access, medium-term open access, and short-term open access” with “GNA and T-GNA.” - Introduces new definitions, including “Communication Regulations,” “Cross Border Transmission Link (CBTL),” and “Dedicated Transmission System,” to ensure clarity in the cross border trade. - Removes redundant clauses and updates regulatory references to align with current laws. **2. Regulatory and Operational Changes** - Allows Indian electricity trading licensees to participate in cross-border trade. - Introduces provisions for power transactions through Indian Power Exchanges. - Specifies the implementation process for the Cross Border Transmission Link (CBTL), including cost-sharing mechanisms and governmental approvals. - Introduces application fees and bank guarantee requirements for obtaining GNA and T-GNA. **3. Infrastructure and Transmission Regulations** - Mandates that entities seeking connectivity must comply with technical standards and submit bank guarantees. - Defines procedures for entities to develop and maintain dedicated transmission systems. - Provides guidelines on the utilization of spare capacity in dedicated transmission systems. - Establishes transmission charges for cross-border trade, with different models for government-negotiated and open-access transactions. **4. Cybersecurity and Communication Systems** - Requires participating entities to adhere to the Information Technology Act, 2000, and CEA (Cyber Security in Power Sector) Guidelines, 2021. - Stipulates that all communication systems must comply with CERC Communication Regulations, 2017, and CEA standards. **5. Curtailment, Charges, and Dispute Resolution** - Specifies the order of curtailment in case of grid constraints, prioritizing T-GNA transactions over GNA. - Updates transmission loss computation, aligning it with the latest sharing regulations. - Revises dispute resolution mechanisms to include provisions for Commission intervention when required. ## Conclusion The Draft Cross Border Trade of Electricity (Second Amendment) Regulations, 2024, mark a significant step in streamlining cross-border electricity transactions in India. By integrating the GNA framework, enhancing infrastructure regulations, and reinforcing cybersecurity norms, the amendment aims to promote a transparent and efficient cross-border electricity trade mechanism. These changes are expected to facilitate greater regional energy cooperation, improve transmission planning, and enhance market accessibility for participating entities. --- [[1]](#_ftnref1) [https://cercind.gov.in/2024/draft_reg/DNA.pdf](https://cercind.gov.in/2024/draft_reg/DNA.pdf) *Last Updated on 6 February, 2025* --- ## Office Locations - [New Delhi](https://ksandk.com/locations/top-corporate-law-firm-in-delhi/) (HQ): +91-11-41318190 | info@ksandk.com - [Mumbai](https://ksandk.com/locations/top-corporate-law-firm-in-mumbai/): 3 offices (Nariman Point, Lower Parel, Andheri) | mumbai@ksandk.com - [Bangalore](https://ksandk.com/locations/top-corporate-law-firm-in-bangalore/): bangalore@ksandk.com - [Chennai](https://ksandk.com/locations/chennai/): chennai@ksandk.com - [Hyderabad](https://ksandk.com/locations/hyderabad/): hyderabad@ksandk.com - [Pune](https://ksandk.com/locations/pune/): pune@ksandk.com - [Kochi](https://ksandk.com/locations/kochi/): kochi@ksandk.com ## Contact - [Contact Page](https://ksandk.com/contact-us/) - General: info@ksandk.com | +91-11-41318190 - WhatsApp: +91-7428567444 - [Privacy Statement](https://ksandk.com/privacy-statement/) - [Terms of Use](https://ksandk.com/terms-of-use/)