Apart from increasing transparency, the competitive bidding guidelines would also help in standardising the whole process, he said.
Currently, the short-term power market comprises about 10 per cent of the total electricity procured in the country. At present, the per unit electricity tariff through short-term procurement is around Rs 4.
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.
As per the draft norms, the minimum time-frame of ten days should be given for the completion of the bidding process. However, an official of a leading power trading company opined that standard norms could restrict short-term power market and is unlikely to bring down the tariffs.
Going by trends, the short-term power procurement rate is around Rs 4 per unit and has come down from Rs 6-7 range in the past few years, the official added.