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| PXIL weekly product to help reduce price volatility in power |
| Press Trust of India / Mumbai Sep 15, 2009, 16:53 IST |
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Power Exchange of India (PXIL) today launched a longer tenure weekly product that will allow buyers to contract power in advance for a period of one week and help reduce price volatility.
The exchange will begin four contracts for a four-weekly period starting September 24 to October 15, PXIL Managing Director and CEO Rupa Devi Singh said.
These products are firm delivery-based contracts and have been designed in line with the existing bilateral trade mechanism.
"People will contract power in advance for one week's period, which will help ease volatility. This product will help give people a lot of certainty because they can contract power well in advance," Singh told reporters here.
"When people contract for a longer period, we expect prices to be much softer," she added.
PXIL, which began operations in October last year, has so far traded 400-million units of power.
"The demand centres in the country conventionally are the western and northern regions," Singh said, adding that private players are yet to make an entry into the purchasing market.
The power exchange also launched the Day-Ahead Contingency (DAC) products, which will give electricity buyers and sellers an option to trade those bids that could not be matched during the Day-Ahead Spot market.
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