“Taking into account the rising price trend driven by tight supply and sudden surge in demand, and in view of the alleged speculation by sellers which also includes Discoms, the Commission finds it appropriate to intervene in the market in public interest…. CERC said in its suo-moto order issued on Friday.
The order has been issued on the basis that there is a need for a uniform maximum price in all segments of the Energy Exchanges so that there is no change in the volume of supply from one segment of the Energy Exchanges to another segment, induced by the maximum price differential between and there is no speculation by sellers in a context of increased demand and reduced supply, he said.
ET reported on April 27 that states have complained that power companies are profiting by overcharging for supply through direct negotiations, avoiding sales in the daily (DAM) and real-time (RTM) markets where prices were capped at Rs 12 per unit in April. 1 by the electricity regulator.
West Bengal, Telangana and Andhra Pradesh said power is not available to them on DAM and RTM segment power exchanges even at Rs 12 per unit as sales bids have fallen sharply 70% since 2 April when the roof was introduced. Prices on the uncapped forward market (TAM) increased to Rs 16 per unit as it became the preferred market for sellers.
CERC said in its order that the volume traded on TAM, Intra-day and Day Ahead Contingency (DAC) in the month of April 2022 witnessed an increase of around 120% over the volume traded in the month of March 2022. 2022.
On April 29, the Ministry of Energy issued instructions under section 107 of the Electricity Law to CERC to issue an order to limit the market price to Rs 12/kWh or less for all segments of Power Exchanges (regulated by CERC ), including Term Ahead Market (TAM). ). The ministry had issued a similar instruction on March 26.