IEX firms up after Feb business update

Indian Energy Exchange rose 2.53% to Rs 187.30 after the company issued business update for February 2020.

The electricity market at IEX recorded a trade of 4,516 million units (MU) in the month of February 2020. The market witnessed a 57% year-on-year growth on the back of increase in traded volumes.

The company in an exchange filing on Wednesday said the increase in trade volume was mainly due to distribution utilities opting for replacement of their costlier power with exchange based procurement. The other main reason for surge in traded volume was increase in demand on account of early onset of summer and agricultural demand in the southern as well the western states, particularly in Telangana due to lift irrigation.

The average market clearing price in Day Ahead Market stood at Rs 2.91 per unit, which saw a 6% decline over the price of Rs 3.08 per unit in February 2019. The company said this resulted into substantial savings for the market participants.

The total sell bids during the month at 10,372 MU were twice the buy bids at 5,233 MU which ensured lower clearing price and brought significant savings to both the distribution utilities as well as the commercial and industrial consumers.

The company further added that volumes in the term-ahead market (TAM) grew by 168% to 226 MU in February 2020 as compared to February 2019. The jump in TAM volumes signified the increase of preference in TAM contracts by the distribution utilities for meeting their intra-day to weekly requirements.

One Nation One Price prevailed for 28 days during the month. However, the day-ahead market saw volume loss of 2.03 MU due to the real time curtailment.

IEX is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, Renewable Energy Certificates (RECs) and ESCerts (Energy Saving Certificates).

On a consolidated front, IEX reported a 2.2% decline in net profit to Rs 41.69 crore on a 9.8% decline in total income to Rs 69.42 crore in Q3 December 2019 over Q3 December 2018.

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