​​​
  1. Short-term power to be cheaper by 13 per cent under reverse e-auction: Icra

Short-term power to be cheaper by 13 per cent under reverse e-auction: Icra

Icra (Investment Information Credit Rating Agency) said procurement through such mode would result in a competitive price discovery in a more transparent manner.

By: | New Delhi | Published: April 27, 2016 5:47 AM

The state-owned power distribution companies (discoms) can save up to 50-60 paise per unit of electricity procured under short-term contracts through reverse e-auction, as mandated by the central government last month. However, given that the average mix of short-term power for discoms is only 11%, the actual benefit to the consumers would be 4-5 paise per unit or 0.8%, Icra has said in its report.

Until now, discoms could enter into bilateral contracts for short-term power (for a period of up to a year) either through cost-plus mechanism or the bidding route. However, with the government notification in March, all such transactions will take place on an electronic platform via reverse e-auction from April 1.

Icra (Investment Information Credit Rating Agency) said procurement through such mode would result in a competitive price discovery in a more transparent manner.

The new method will bring relief to the debt-laden discoms and their consumers, but it could squeeze the power developers’ margin, according to Icra.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Go to Top