The new norms would help in bringing transparency as well as standardise the whole process of short term power procurement, the official noted.
Presently, there are no specific guidelines for short term power market, which accounts for about 10 per cent of total electricity procured in the country.
State-run Power Finance Corporation (PFC) had come out with draft guidelines for short-term power procurement by distribution licensees through tariff-based bidding process. Power exchanges are not included in the same.
Among others, the draft norms had suggested that the minimum time-frame of ten days should be given for completion of the bidding process.
Excluding renewable sources and captive power plants, the total electricity generated in February stood at 70,999.60 million units. Out of that, 6,441.56 million units -- or about nine per cent -- were transacted through short-term mode, according to data available with the Central Electricity Regulatory Commission.
Going by estimates, the short-term power procurement rate is about Rs 4 per unit, declining from Rs 6-7 range in the past few years.
Source - Economic Times