Power traded on power exchanges reduces 70%

News: States have informed the Power Ministry and the Central Electricity Regulatory Commission (CERC) that power companies are profiteering by overcharging for supply through direct negotiations by evading sale on power exchanges since prices were capped this month at Rs 12 per unit by the electricity regulator

Views: According to data available the bids have fallen by a sharp 70% since April 2 when prices were capped. Drop in the volumes traded on power exchanges will negatively hurt IEX as DAM is one of the main contributors of volumes on IEX

Impact:  Negative