tamperfinderA new market with a higher rate for the sale of power was established by the government. States will no longer be able to purchase cheap electricity in the future due to the market opening up under the Power Exchange.
To address the shortage, the central government required private power plants to buy coal from other countries. Production with imported coal has a significant cost. The cost of electricity will also increase. On the power exchange, electricity can only be traded for a maximum of INR 12(0.15USD) per unit.
The private facilities were unable to raise the price above INR 12 per unit, hence they were not using all of their manufacturing capabilities. The Central Electricity Regulatory Commission (CERC) has chosen to increase Kerala’s liability while the central government is prepared to establish a new market. The Regulatory Commission has mandated that states pay the higher costs incurred by power plants that employ both domestic and imported coal for generations. Since Kerala must purchase 2/3 of its power from outside the state, this choice will result in an increase in liability for the state of 110 crores (14 million USD) per month.
The higher rate market is launched in this case with the intention of aiding the plants. As a result, fewer people will visit other marketplaces to sell electricity at the maximum rate or at a reduced rate. This will result in less electricity being available and higher fees. State power procurement costs will increase. The creation of a high-rate market has been discussed with the states by the Central Government. Since both the Central Government and state governments can make policy decisions on electricity because it is a concurrent topic, the latter’s engagement is dwindling as a result of key policy decisions being imposed upon them.
#entralelectricityregulatoryxommission #kseb #indianpowerexchange #cerc
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