New Delhi, July 8 (ANI): Union Minister for Power Sushilkumar Shinde on Wednesday said that the Government's initiative to establish Power Exchanges in India has benefitted the country.
The minister said it happened by ensuring payment security, promoting competition among stakeholders, reduction in transaction costs by providing a common platform for trading, empowering demand side response to price signals and bringing about efficiency.
"Power is a high priority sector for the Government and policy initiatives will continue to promote competition, efficiency, restructuring and investment," said Shinde while delivering the inaugural address at a seminar on "Journey to Competitive Markets" in the national capital.
Shinde said that a number of other initiatives have also been taken for empowerment of the State Load Despatch Centers, thereby, facilitating further growth of the Power Market.
These include setting up of committees by the Ministry of Power to look into various aspects to improve the infrastructure and other facilities in the State Load Despatch Centers and their ring fencing.
Organised by Indian Energy Exchange (IEX), the seminar was meant to mark its first anniversary and attended by several luminaries of power sector.
Shinde, on this occasion, said that during the year the total number of members and clients of IEX has crossed 130 and over 3,600 million units of power worth Rs. 3,000 crore has been traded through the Power Exchange.
The Electricity Act, 2003 has been brought about to facilitate private sector participation and to help cash strapped SEBs to meet electricity demand. It envisages competition in electricity market, protection of consumer's interests and provision of power for all.
The Act provides for National Electricity Policy, rural electrification, open access in transmission, phased open access in distribution, mandatory SERCs, license free generation and distribution, power trading, mandatory metering, and stringent penalties for theft of electricity.
The minister said considering the present inter-State power trading scenario and the need to promote power trading in a free power market, Central Electricity Regulatory Commission (CERC) approved the setting up of IEX as the first power exchange in India. (ANI)