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CERC caps power price on power exchange

CERC caps power price on power exchange

Bahaduejeet Singh /Rupnagar

Central Electricity Regulatory Commission (CERC)  has capped  the maximum  power price on power exchanges to Rs 12  per unit from the earlier limit of  Rs 20 per unit.

CERC in its suo motto order, directed the power exchanges  to re-design, with immediate effect, the bidding software in such a way that  members can submit their bids in the price  range upto  Rs.12 per unit   for day ahead market (DAM)  and real time market (RTM).

The power exchanges are to comply with the direction within two days. This decision has been taken in view of the fact that 99% of the supply bids   have been in the range of Rs.12 per unit  and only 1% of the supply bids have  been between  Rs.12 to 20 per unit.

CERC caps power price on power exchange-Photo courtesy-Internet
CERC

The commission in its order said buy bids on power exchanges have been more than double of the sell bids, indicating higher demand and lower supply.

The aggressive bidding in a desperate scenario by buyers is leading to high prices.  The average spot power prices  has been frequently touching the ceiling of Rs 20 per unit. Abnormally high prices at power exchanges, even for a short period, hurt consumers’ interests and erode buyers’ confidence in the market, the commission said.

V K Gupta spokesperson All India Power Engineers Federation (AIPEF) said that last year in October they had written to R K Singh , Union power minister  demanding   a cap on profiteering by private  power generators (IPPs).

April 3,2022

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