Energy Trading is one of the most crucial activities in ensuring the reliable electricity supply and achieving economy. It acts as a balancing mechanism between the surplus power generating units and deficit power needing entities as also replacement of high cost power by low cost power. The responsibility of playing the role of a bridge between these two bounds has been taken up by Reliance Energy Trading Limited, subsidiary company of Reliance Infrastructure limited. The company has been operating in power trading in India since June, 2005. It is trading the surplus power available from State Power Utilities, State Generating Companies, Independent Power Producers, Captive Power Plants and other such sources, including the power exchanges.
Ignited by the flames of liberalization, privatization and globalization, power trading has become a multi-billion dollar business throughout the world. Power Trading in India will lead to optimization of cost of power, optimum utilization of resources, creating enhanced value for customers. Keeping the very fact into consideration, Government of India recognized trading as an activity through the Electricity Act, 2003.
Taking the opportunity created by the Electricity Act, Reliance Infrastructure Limited formed a new Company in the name of “Reliance Energy Trading Private Limited”, for the purpose of trading of electricity. It was incorporated on July 17, 2003. The Company was reconstituted from Private Limited Company to Public Limited Company with effect from July 6, 2004 and renamed as “ Reliance Energy Trading Limited “.
As per the Central Electricity Regulatory Commission's regulations, Reliance Energy Trading Limited holds category-I (highest category) trading Licence issued by the Hon'ble Commission, valid for 25 Years i.e. up to June 29, 2029. The company has trading licence of category I with freedom to trade any volume of power.