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In a recent order, Central Electricity Regulatory Commission (CERC) extended electricity exchange’s maximum allowable quoted price to Rs 12/kwh till 30th Sep,2022 for all format of contracts. Different format of contracts which comes under this order are Day Ahead Market (DAM), Real Time Market (RTM), Intra-Day, Day Ahead Contingency and Term-Ahead (including GTAM) contracts.
Recently, on the basis of India’s power demand supply and demand assessment, the commission ordered all exchanges to set a price limit between Rs 0/Kwh & Rs 12/Kwh. This was until 30th June 2022.
In view of the above context, commission regularly monitored the exchange’s discovered electricity prices and volume of traded electricity between May 2022 and June 2022. Major points observed between May 2022 to June 2022 are given below.
a. Peak power demand hovered at maximum 204GW to 212GW between May 2022 to June 2022. Country observed this kind of high demand for the first time.
b. Percentage share(%) of discovered market clearing prices (MCP) in the range of Rs 12/KWh for DAM contracts was ranged from 4% to 66% in IEX.
c. Percentage share(%) of discovered market clearing prices (MCP) in the range of Rs 12/KWh for RTM contracts was ranged from 2% to 53% in IEX.
d. For June 2022, average price of volume traded for Term Ahead Market (TAM), Intra-Day and Day Ahead Contingency (DAC) was Rs 8/KWh.
Commission’s Observation And Decision:
In view of the above context, commission observed that the trend in high power demand will continue for next few months in view of increased economic activity, high agricultural load demand and increased household load. After observing all points and analysis, commission ordered the extension of exchange’s quoted price caping to Rs.12/KWh till 30th Sep, 2022.
Recently, CERC approved the operational clearances to country’s third power exchange named Hindustan Power Exchange Limited (HPXL).