HPX gets CERC’s nod for high price contracts

Hindustan Power Exchange Limited (HPX) has got approval from the Central Electricity Regulatory Commission (CERC) for the introduction of high price contracts in three key markets.

The three markest are high price day ahead market (HP-DAM), high price term ahead market (HP-TAM), and high price contingency contracts. As a part of this development, HPX will now offer these contracts in the HP-DAM and HP-TAM segments. The high price contingency contracts will provide added stability to the energy market during periods of volatility. The HP-DAM pricing has been established with a floor price of zero and a forbearance price of Rs 20 per kWh. With the fresh alternative of HP-TAM these high price generators can plan for sale of their power to interested beneficiaries under longer term contracts of upto 90 days. This would give them an opportunity to secure fuel supply in advance and plan their operations basis the underlying contracts, moving away from the sole dependency on clearance in the day ahead market segment.