Price ceiling on power bourses to stay till DecemberIEX - 145 Change: -1.85 (-1.26 %)
The Central Electricity Regulatory Commission (CERC) has extended Rs 12 per unit price ceiling in all market segments of power exchanges by three more months till December 31. The earlier order lowering the price cap from Rs 20 was in force till Friday. The government is planning to launch a high-price market specifically for gas-fired and battery storage plants in the coming three months.
The order said, based on the assessment of demand-supply position in the power sector, it is felt that the high demand for electricity is likely to continue from household and industrial consumers due to the festive season. Moreover, agricultural load will persist over the next few months on account of harvesting of kharif crops and sowing of winter crops. However, it will impact IEX negatively. IEX is unable to garner volumes due to capping as many suppliers and consumers are going for bilateral contracts instead of going for power exchanges contracts. Launch of a new high price market will surely add volumes to IEX specially during the duration of a power crunch.