BL reported that short term electricity prices in the country have tripled over the last five years, with forecasts of a further rise as the peak shortage is projected to cross 18% by the end of this fiscal.
According to the Central Electricity Regulatory Commission data, the weighted average price of short-term power electricity transacted by distribution utilities through trading firms and over the two functional power exchanges has surged three times from INR 2.32 per kWh unit in 2004-05 to INR 7.31 in 2008-09 across the country.
With most State electricity boards and distribution utilities buying power in the short term market to tide over shortages, retail prices are widely predicted to head north The Load Generation Balance Report of the Central Electricity Authority, which forecast the deficit scenario for 2009-10, the estimated energy shortage is pegged at 8.8% and the peak shortage at 18.1%.
The peak shortage in the northern region is expected to be 19.4%, western region 27.4% and southern region 18.8%.
A CERC official said that “Average electricity prices are expected to be much higher this year, especially in the light of the delayed monsoons and, as a consequence, prices rising to INR 14 to INR 19 per unit in the short term market during peak hours in July and August.”
Of the total electricity generated, roughly 8% is transacted in the short term market. Of this around half is through bilateral deals while the remaining is through the power exchanges and the UI mechanism.
(Sourced from Business Line)
Tuesday, September 15, 2009
Short term power price surges on peak shortage
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