Power spot prices touched a nine-year high of Rs 15.37 per unit in the day ahead market (DAM) on Indian Energy Exchange (IEX) on Thursday, with a record volume of power traded on the exchange. However, top government official rushed in to assure that the consumers need not worry about their electricity bills rising, as the traded electricity is only a minuscule part of overall electricity supply.
Power trading on the exchange is not more than 4%, while 90% of the sale of power takes place on PPA prices, which are very low, Power Secretary A K Bhalla said on Friday, trying to dispel fears of further rise. Spot power prices on the IEX surged to the nine-year high yesterday, albeit it was for a short duration of 15 minutes or half an hour, said Bhalla.
The spike in power tariff was on account of decrease in wind and hydro power generation, which is usual during this time of the year, Bhalla said on the sidelines of a CII conference on power transmission. However, the shortage this time was accentuated due to insufficient coal reserves, he added. Read More