The Forward Markets Commission (FMC) and Multi-Commodity Exchange of India (MCX were issued official notices following a petition filed by Central Electricity Regulatory Commission (CERC) after the dispute over regulation of power futures between the electricity regulator and the commodity futures watchdog has reached the Supreme Court. "The high court committed a grave error in ignoring the fact that the 1952 Act does not give any power or functions to the Forward Market Commission on regulating prices of electricity and regulating prices of electricity and regulation contracts which have a direct impact on prices of electricity", said CERC in is Special Leave Petition. The CERC had issued an order in January last year making it clear that its rules will govern all electricity related contracts, including derivatives. MCX had to discontinue trading in derivatives and will need to move the CERC afresh for licence. The petitioner commission, CERC, wants to ensure that transactions on the exchanges are conducted in a free and fair manner so that consumers are not subjected to potentially anti-competitive behaviour. It further added that future/forward contract is meant for delivery of goods (electricity) and hence it is inconceivable that Forward Market (Regulation) Act, 1952 would govern the physical delivery of electricity in a power exchange so far as the sale and purchase of electricity is concerned.

Forward Markets Commission ,(FMC) ,Multi-Commodity Exchange of India ,MCX,Central Electricity Regulatory Commission ,(CERC) ,potentially anti-competitive behaviour, power exchange