Central Electricity Regulatory Commission has asked exchanges to restrict prices
The Central Electricity Regulatory Commission (CERC) has asked power exchanges to limit prices to Rs 12 ($0.1580) per unit amid a surge in electricity demand and the rising cost of imported coal.
In recent days, prices discovered on power exchanges have remained “significantly” higher, CERC said in a statement.
Abnormally high prices on power exchanges, even for a short period of time, harm consumers’ interests and erode buyers’ confidence in the market, the committee said.
It also noted that electricity demand in India has risen due to the start of the summer and an increase in economic activity following the coronavirus pandemic.
Power demand could rise further after weather officials predicted above-normal maximum temperatures in most parts of the northwestern, northeastern and central regions in April.
The Indian Energy Exchange (IEX) and privately held PXIL are the two major energy exchanges in India.
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