Longer duration purchases on power exchanges soon
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.
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.