Power Charges Rise Approximately 50% at IEX

Power rates at the Indian Energy Exchange (IEX) rose Rs 1.16 per unit or almost 50%, through the last five days on the back of a near 60% rise in demand driven by increased buy bids from South India.

Some states have been asked to supply power 24x7 leading to amplified buying from the exchange. Power prices during the 9 pm – 10 pm slot was highest on Thursday during the week at Rs 7.45 per unit as demand outstripped supply by almost 25% for the slot.

Typical market price on Sunday was Rs 2.41 per unit which inched up to Rs 3.57 per unit during the week. Demand for power was 119.57 million units on Sunday which shot up to 190.23 million units during the week.

As per IEX executives, demand from states like Andhra Pradesh, Kerala, Telengana and Tamil Nadu has occasioned in the surge in prices. Tamil Nadu, the executive said, registered the highest demand among southern states.

Just as in any other weekdays demand for power outstripped supply offer during night peak. However, on Thursday, demand was greater for the 7 pm – 8 pm slot as well. Prices for the slot was settled at Rs 5.48 per unit. Utilities wanted to buy 10.46 million units while on offer was 7.81 million units. Trade was settled for 7.48 million units leaving demand for 2.97 million units of power unmet.

For the 8 pm – 9 pm slot, utilities wanted to buy 11.16 million units of power while generators were ready to supply 6.91 million units only. Trade was settled for 6.79 million units leaving demand for 4.37 million units unmet. Average price for the slot was Rs 7.34 unit, the second highest during the day.

Demand for power during the 9 pm to 10 pm slot was highest during the day so was the settled price at Rs 7.48 per unit. Power distribution companies wanted to buy 11.71 million units while supplies managed to offer 6.68 million units of power only. Trade was settled for 6.59 million units leaving 5.12 million units unmet.

During the 10 pm – 11 pm slot demand for power was 11.74 million units while generators offered to sell 7.1 million units. Trade was settled for 6.95 million units while demand for 4.79 million units remained unmet. It was traded at Rs 6.87 per unit.

Utilities wanted to buy 11 million units of power during the 11 pm and 12 midnight slot while on offer was 7.7 million units. Trade was settled for 7.39 million units at Rs 5.03 per unit leaving demand for 3.60 million units unmet.