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MAY 01 2013

Longer duration purchases on power exchanges soon

  • Economic Times, ET Bureau / Hyderabad
  • Created: Wed 01st MAY 2013

As of now, it is possible to purchase for only 15 days. But once longer term trade is allowed, one can book for three or six months and possibly even up to two years.

Within a couple of months, power purchasers on the energy exchanges will be able to book purchases for longer duration, according to Indian Energy Exchange Ltd.

As of now, it is possible to purchase for only 15 days. But once longer term trade is allowed, one can book for three or six months and possibly even up to two years, Rajesh Kumar Mediratta, Director of Business Development, IEX, told Business Line here on the sidelines of the meeting on power sector issues.

The issue of sale of power on the exchanges for longer periods got delayed with both Central Electricity Regulatory Commission and Forward Markets Commission claiming that power trading falls in their respective domains.

However, an amicable settlement is likely to be worked out by the Ministries of Consumer Affairs and Power.

More than 2,000 purchasers trade on the IEX. But at present one can book only for 15 days. This sometimes causes problems as there is no price predictability. "By booking for longer time, they will have the advantage, he felt.

SOUTHERN HIGH

Referring to the high prices ruling in the southern market at about Rs 9 and lower rates of Rs 2.80-3 per unit in the North, he said even though there is plenty of power available in the North now, it is not possible to supply to the South due to grid congestion. The situation is likely to get better once the West to South corridor gets strengthened. But even after that, there will be limitations in terms of capacity that can be handled, he said.

Referring to the current prices on the exchanges, he felt that they are likely to go up over the next couple of months as the demand is poised to shoot up. The trading renewable energy certificates will also go up on the exchanges, as more companies need to meet their renewable purchase obligation.

Tags

India Energy Exchange Ltd. India Energy Exchange Energy Forward Markets Commission Power IEX Electricity Consumer India

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