Transparency in Power Pricing

By Ramesh Akkineni
from an article in Business Line
Sterlite Industries, India Cements, Jindal Stainless, Nahar Industries, Vardhman Group and Rajasthan Spinning and Weaving Ltd are among an increasing number of industrial consumers that have begun buying part of their power requirement through deals on the power exchanges.

Despite initial reluctance by most State Electricity Boards (SEBs) to grant open access permission, industrial consumers now account for nearly a third of the 30-39 million units of electricity traded daily on the IEX, the country's largest exchange, from close to zero a year ago.

This fundamental consumer shift is driving up trading volumes on the exchanges, with around 100 industrial customers emerging as active players on the IEX. The industrial buyers basically come under two categories — one, those facing power-cuts during peak hours and hence resorting to purchases on the exchange by paying up to Rs 10-12 aunit, and, two, firms scouting for cheap power during off-peak hours at less than Rs 3 a unit.


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