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    CERC extends price cap on power exchanges till September 30

    Synopsis

    “The commission in order to protect consumer interests, has decided to extend the applicability of the aforesaid Order dated 06.05.2022 in Petition No. 05/SM/2022 (Suo Motu) till 30th September, 2022,” an order issued on Thursday said.

    powerAgencies
    The Central Electricity Regulatory Commission (CERC) has extended Rs 12 per unit price ceiling in all market segments of power exchanges by three months. The earlier order lowering the price cap from Rs 20 was in force till Thursday.

    “The commission in order to protect consumer interests, has decided to extend the applicability of the aforesaid Order dated 06.05.2022 in Petition No. 05/SM/2022 (Suo Motu) till 30th September, 2022,” an order issued on Thursday said.

    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 over the next few months due to increase in economic activity, high agricultural load on account of sowing of kharif crops, and increase in household demand.

    The power supply position has improved over the last couple of months but the increasing trend of demand might put pressure on market prices once again without commensurate increase in supply in the power exchange market, it said.

    The peak demand has been fluctuating and touched 204 GW in May 2022 and 212 GW in June 2022. During the period from May 7, 2022 till June 28, 2022, the percentage of blocks in a day with maximum clearing price discovered at Rs 12/kWh ranged from 4% to 66% in Day Ahead Market (DAM) and from 2% to 53% in Real Time Market (RTM) at IEX, the order said.

    The weighted average price of volume traded in Term Ahead Market (TAM), Intraday and Day Ahead Contingency (DAC) was around Rs 8/kWh in the month of June 2022. Intra-Day contracts have also been trading at around Rs 11/kWh till June 26, 2022, it said.


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