The trend could mean further trouble for the distribution companies ahead of summer season as they have already accumulated huge financial losses but generating companies are happy as most of the power is fetching higher rates than being offered under bilateral agreements.
NHPC has registered nine of its 14 projects to sell about 400 MW power on Indian Energy Exchange that has seen a spurt in trading volume and expects further rise in coming months. Power producers that sell electricity in exchanges need to register the projects from which power is being sold to help buyers arrange for transmission facilities.
Generating companies are losing patience with defaulters as earlier NTPC, despite being largest supplier to Delhi, had threatened discontinuing supply to BSES companies.
Satluj Jal Vidyut Nigam has begun selling 100 MW through the exchange while North Eastern Electric Power Corp (NEEPCO) has registered 20-MW capacity. A senior NEEPCO official said in addition to defaults, distribution companies were also backing out of purchase commitments causing under utilisation of generating stations.
A BSES spokesperson said in the absence of appropriate tariffs, it was inevitable that consumers would suffer.
"In case of regulation, discoms will have to either shed load or make up for the shortfall by procurement through the open market. In either case, the burden of cost or the lack of service will affect the consumers. This will also adversely affect the generators, since the sale of power in the open market will also target the same discoms, which do not have adequate paying capacity," the spokesperson said. India Energy Exchange senior vice-president (business development) Rajesh K Mediratta said as the temperatures soar in coming months, generation from the hydropower plants will increase resulting in further rise in trading volumes.
"Earlier, state generating companies did not have any option but to look for new buyers for leftover power. But now generating companies are coming onto the exchange and selling power. This enables them to sell the power at market-prices with payment security." Over 700 power producers and consumers from 26 states and 4 union territories are trading on India Energy Exchange to trade about 35 million units of electricity.
Source- Economic Times