|
New Delhi: The introduction of long-term electricity contracts or term-ahead market by the power exchanges has hit a major roadblock as it has been strongly opposed by the Central Electricity Authority (CEA).
Interestingly, the CERC has already reserved its order on separate petitions filed by the Indian Energy Exchange (IEX) and Power Exchange India (PXI). These exchanges propose to launch weak ahead, month ahead, year ahead electricity contracts. Incidentally, as reported by FE, IEX has already launched mock trading in long-term electricity contracts.
IEX proposes close option and common price to selected users in the term-ahead market. On the other hand, PXI plans different prices in which the lowest seller will get highest buyer's price.
CEA chairman Rakesh Nath at the sidelines of a seminar organised by IEX for completion of one year of operation told FE “Ours is a energy market and not capacity market. Thus there is a need for a day ahead trading which is currently done by both IEX and PXI.”
CEA sources said that day ahead contracts are suited in the present situation when there are shortages in the country. Infact, states are struggling to cope up with the situation and against this backdrop term-ahead market is not advisable. CERC chairman Pramod Deo said that the CERC has heard the petitions filed by the two exchanges and reserved its orders.
More from Economy
Discuss this story on expressindia forums
|
|
 |
 |
 |
About Us | Contact Us | Advertisers | Site Map | Make us your homepage | Work for Us | RSS | Subscribe | Electronic Edition | Privacy Policy© 2009: The Indian Express Limited. All rights reserved throughout the world
