On Thursday, all hourly prices of October 2 first-time touched price cap of Rs 8 per unit. The energy prices have seen a rise from a average price of Rs 4.08 per unit on September 1 to Rs 8 per unit on October 1, an increase of 96% within a month. The rise is due lack of rains causing increase in agriculture load, increase in demand due to temperature rise, sources at the IEX told FE on Thursday. The trade volume on IEX in September touched 472 MUs while it was 55.60 MUs on the PXI.
At the IEX, on Thursday, the total buy bids for 49.5 MUs was received whereas the sale bids were only 27.7 MUs and the cleared volume was 24.91 MUs. The increased demand in northern states also resulted in congestion in hours 1 to 4 and hours 7 to 17. Congestion is still resulting in average area price differential of about Rs 1.4 per unit.
IEX sources said that the average price for September 2008 was Rs 7.68 per unit whereas it was Rs 4.08 per unit in the corresponding period this year, a fall of 46 % from the last year. The average price in September is low because of delayed monsoon, which was in full swing for the first fortnight of September whereas in September last year due to failure of monsoon in southern region the prices were at higher level. In last 15 months, the turnover has crossed Rs 3,900 crore with a total cumulative volume crossing 5.1 billion units.
On the other hand, PXI on Thursday received total bids for 7.6 MUs whereas the sale bids were for 5.351 MUs and the cleared volume was 4.968 MUs. PXI sources said the average prices were Rs 7.34 and Rs 6.40 per unit in the northern and western regions, respectively. The price did reach at Rs 8 per unit for some hours. In the last 11 months, the turnover has crossed 434 MUs.
Power industry sources informed that diesel based captive power producers are currently not generating power due to the ceiling of Rs cap of Rs 8 per unit. The power generated through these plants is quite higher than this ceiling and thus there are no takers for such costly power.