Electricity prices positive for merchant power firms; JSW key beneficiary

Apart from JSW, Adani Power, KSK Energy & Jindal Power also became key beneficiaries

The power sector remains in focus with the rise in short-term power rates. The early onset of summer and low coal availability at power plants has led to spot power tariffs strengthening further. The increase in spot power prices has been steep to the extent of 22 per cent year-on-year in March 2018, according to Emkay Global. CRISIL data suggests that the monthly market clearing price at the Indian Energy Exchange (IEX) has spiked 25 per cent from Rs 3.20 per unit in January this year to Rs 3.97 in March, taking the average cost to Rs 3.43. 

The spike in