CERC extends price cap on power exchanges till December 2022

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 segments of power exchanges by three months till December 31, 2022.

In May 2022, the CERC had 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 which was later extended to September 30, 2022. During the last three months, market clearing price (MCP) of Rs 12 per kWh in DAM has generally been discovered during the evening hours from 18:30 hrs onwards. As per the emerging demand-supply situation in the power sector, it is expected that despite the fall in temperature, high demand for electricity particularly from household and industrial consumers is likely to continue over the next few months mainly due to festive season, and pressure emanating from lighting and heating load. Moreover, agricultural load will persist over the next few months on account of harvesting of kharif crops and sowing of winter crops. Domestic coal stock seems to be well positioned, however, as per the past trend, it is expected that generation from hydro and wind would start decreasing from October onwards, which is likely to exert pressure on coal stock. In order to protect consumer interests, the commission has decided to further extend the applicability of the order till December 31, 2022.

 

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