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.
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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