Spike in spot prices won’t hit tariffs as most are long-term contracts: Ajay Kumar Bhalla, Power Secretary

Spike in spot prices won’t hit tariffs as most are long-term contracts: Ajay Kumar Bhalla, Power Secretary

The current spike in spot power prices will have minimal impact on power tariffs, says power secretary Ajay Kumar Bhalla . In his first media interview, Bhalla tells Economic Times, the rise in spot power rates was not due to mismanagement.

He also says annual maintenance of power plants will now be undertaken in a staggered manner after taking weather forecast into account to avoid such situations.

Edited excerpts:

What has led to the sudden spike in spot power prices?
The price on power exchanges is mainly governed by demand-supply scenario. There is 64 per cent increase in purchase bids in the last 15 days and about 20 per cent reduction in supply bids in the same period. The average market price was less than Rs 3 per unit till September 3 and has now crossed Rs 5 per unit. The important point is that volume of power being traded in the mark .. Read More

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