The Central Electricity Authority (CEA) has reviewed a draft order by the Central Electricity Regulatory Commission (CERC) dated October 4, 2024, which proposes several changes to improve operations on power exchanges. These adjustments target various market segments, including the Term Ahead Market (TAM), Any Day Single Side Double Auction Segment (ADSS), Intraday, and Day Ahead Contingency (DAC).
In the TAM segment, CERC suggests standardizing trading slots and setting strict timeframes for different phases, like bidding, auctioning, and acceptance. This aims to reduce last-minute bids that may limit competition and potentially foster collusion. CEA noted that many bids in this segment are submitted near the close of trading, reducing response time for other participants and raising concerns about transparency. The proposal also addresses issues with non-standardized bids that limit competition by allowing customized delivery profiles, making CERC’s move towards standardized slots widely supported by CEA.
In the DAC market, continuous matching has been criticized for its limited competition and transparency. The draft proposes that power exchanges display buy and sell offers for 10 minutes before finalizing trades. CEA, however, sees this as a temporary fix and recommends adopting an open auction format to better regulate trading.
The draft order also suggests ending Intraday contracts due to low market liquidity and instead focusing on Real-Time Market (RTM) alternatives. Additionally, ADSS timelines have been clarified, though CEA recommends setting minimum and maximum time limits to enhance transparency.
CEA endorses most of these changes, recognizing their potential to boost competition and market efficiency.
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