The Central Electricity Regulatory Commission (CERC) has issued directions to the power exchanges registered under the Power Market Regulations, 2021 to extend the price ceiling of Rs 12 per unit in all market exchanges of power exchanges by three months.
In May 2022, the CERC has directed the power exchanges to redesign their software in such a way that members can quote price in the range of Rs 0-12 per kWh in day ahead market (DAM) (including green DAM (GDAM)), real-time market (RTM), intra-day, day ahead contingency and term ahead market (TAM) (including green TAM (GTAM)) contracts. The said order was applicable till June 30, 2022. Based on the assessment of demand-supply position in the power sector, it is felt that the high demand for electricity is likely to continue over the next few months due to increase in economic activity, high agricultural load on account of sowing of kharif crops, and increase in household demand. The power supply position has improved over the last couple of months but the increasing trend of demand might put pressure on market prices once again without commensurate increase in supply in the power exchange market. In order to protect consumer interests, the commission has decided to extend the applicability of the order till September 30, 2022. Accordingly, for the period from July 1, 2022 to September 30, 2022, the power exchanges will continue to operate their software in such a way that members can quote price in the range of Rs 0-12 per kWh in DAM (including GDAM), RTM, intra-day, day ahead contingency and TAM (including GTAM) contracts.