Power bourses may soon get nod to launch long-term contracts

Power regulator Central Electricity Regulatory Commission (CERC) is likely to notify the amended open access regulations this week, paving the way for the top power exchanges — IEX and PXIL — to launch long-term contracts.      

"The amendment to the Open Access Regulations for Inter-State Transmission will be notified in about a week," a senior CERC official told PTI.      

So far, Indian Energy exchange (IEX) and Power Exchange India Limited (PXIL) are allowed to trade only in the day ahead market. The proposed amendments will clear the way for IEX and PXIL to launch week ahead and month ahead contracts.      

One of the key amendments in the Open Access Regulations is that the bilateral transactions on the power bourses will be permitted through long-term contracts, he said.      

The official said, "After amendments are notified, CERC will hear the petition of IEX and PXIL, which appealed to allow week ahead and month ahead contracts".      

He further said these two exchanges may get final clearance after their petition is heard by month-end.      

Experts are of the opinion that the launch of long-term contracts will relieve power deficient states as they can plan to bridge the demand-supply gap well in advance by opting long-term contracts.