The Central Electricity Regulatory Commission vide its order dated May 6, 2022 has capped the prices on power exchanges across all the market segments – DAM, RTM, Intra-day, Day Ahead Contingency and Term-Ahead contracts at Rs 12 per unit.
The CERC has directed the power exchanges, from the date of the order till June 30, 2022, to redesign, their software in such a way that members can quote prices in the range of Rs 0 per kWh to Rs 12 per kWh in DAM (including GDAM), RTM, Intra-day, Day Ahead Contingency and Term-Ahead (including GTAM) contracts. The contracts which have already been transacted till the date of issuance of the order will be delivered and settled as per the earlier terms and conditions.
Earlier the CERC vide order dated April 1, 2022 had directed the power exchanges until further orders, to re-design the bidding software in such a way that members can submit their bids in the price range of Rs 0 per kWh to Rs 12 per kWh for DAM and RTM. One of the key grounds for the intervention by the Commission was the fact that 99 per cent of the supply bids were in the range of Rs 12 per kWh and only 1 per cent of the supply bids were higher than Rs 12 per kWh. The objective was to protect the large number of buyers (consumers) from being compelled to bid a high price of Rs 20 per kWh because of the bid behavior of a very few buyers.
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