(1) The trading licensee may engage in the business of trading in electricity in the State:
Provided that in the event of sale or supply of electricity to the consumer besides others, such engagement in business shall be subject to the payment of surcharge to meet the current level of cross subsidy as provided in sub-section (2) of section 42 of the Act.
(2) The trading licensee shall not undertake transmission of electricity to any person in the State.
(3) The trading licensee shall not, without the prior approval of the Commission, - 4 Compendium of HPERC Regulations, March 2021
(a) undertake any transaction to acquire by purchase or takeover or otherwise, the utility of any other licensee;
(b) acquire any beneficial interest in any generating company or generating station, or
(c) engage in the business of electricity distribution.
(4) The trading licensee shall seek approval of the Commission before making any loans to, or issuing any guarantee for any obligation of any person, except when made or issued for the purposes of the licensed business. Loans to employees pursuant to their terms of service and trade advances in the ordinary course of business are excluded from the requirement to seek such approval.
(5) The trading licensee shall not at any time transfer or assign his licence in any manner without the prior approval of the Commission.