Central Electricity Regulatory Commission orders power exchanges to maintain price cap of ₹12/unit until December
The Central Electricity Regulatory Commission (CERC) has extended the price cap of ₹12 per unit on power exchanges until December 2022, amid expected demand during the festive season and winter .
At a recent meeting of the Operations Coordination Sub-Committee of the Southern Regional Power Committee, under the aegis of the Central Electricity Authority, Tamil Nadu said it would manage any likely shortfall from September 2022 to January 2023 through real-time market purchases.
According to data shared at the meeting, the state’s evening peak demand is expected to be 15,300 MW in October 2022, 14,500 MW in November 2022, and 15,000 MW in December 2022. Availability is expected to be 14,574 MW in October 2022, 13,895 MW in November 2022 and 13,537 MW in December 2022.
In May 2022, CERC had ordered power exchanges to cap prices at ₹12 per unit, while prices were rising to ₹20 per unit. This was initially applicable until June 30, 2002 and was later extended until September 30. From now on, the cap will be applicable from October 1, 2022 to December 31, 2022.
Peak demand across India fluctuated and reached 199 GW on September 7. Based on the past trend, peak demand (morning and evening peaks) is expected to remain significant due to lighting and heating load during the winter months, said the CERC in its order issued Thursday.
In line with the emerging supply and demand situation in the electricity sector, it is expected that despite lower temperatures, strong demand for electricity, particularly from households and industrial consumers, will is expected to continue over the next few months, primarily due to the holiday season. and pressure emanating from lighting and heating load, he noted. In addition, the agricultural burden will persist over the coming months due to harvesting of kharif crops and planting of winter crops, CERC added.
The domestic coal stock appears to be well positioned relative to the stock from October to December last year. However, in line with the past trend, hydro and wind generation are expected to start declining from October, which is likely to put pressure on the coal stockpile, he added. .
Over the past three months, the market clearing price (MCP) of ₹12 per unit in the day ahead market has generally been discovered during the evening hours from 6:30 p.m., CERC said. From September 15, 2022, morning and evening peaks of the MCP are seen in the day ahead market at Indian Energy Exchange. These peaks are expected to become steeper during the winter season, he said.