CERC to issue orders this week on cap on pricing in power trading

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Mumbai, Nov 26 (UNI) Concerned over the high rates quoted at the power trading houses, the Central Electricity Regulatory Commission (CERC) is expected to come out with an order on the issue this week, cerc Chairperson Pramod Deo said here today.

Delivering the keynote address at the India Energy Conclave 2008, organised by the Confederation of Indian Industry (CII), he said the cost of electricity at the power exchanges had gone up as high as Rs 10 per KWH and there was need to have a cap on pricing.

He said based on a staff paper on the issue, the Commission had recently held a public hearing on the high rates being quoted in short term trading of power by the power exchanges. Currently, only about four per cent of the power generated in the country was being traded by two power exchanges.

At the same time, such a cap could not be regulated due to various issues, including unexpected interchange (UI) of power by states resulting in underutilisation and overdrawal by states, and provision of free electricity in some hydro-generating states, especially Himachal Pradesh, where such free power was 12 per cent and not covered by regulatory commission.

Referring to the UI phenomenon, Dr Deo later told newspersons that it was as high as 30 per cent and the CERC would be reviewing the position shortly.

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