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Web Exclusive | August 2013

Tariff down in IEX as demand for power slides in monsoon

Except in south India and Punjab, in July, price of power in India came down to Rs 2.00. Even on some occasions, the price of power dropped to as low as Rs 0.99 per unit due to lower demand for power in this monsoon. The rains have eased the demand for power across India and the same has been reflected in the Indian Energy Exchange (IEX), say media reports.

At the IEX, the average power price in July across majority of Indian states remained below Rs 2.00 per unit. The exchange stated that it presents an opportunity for the buyers.

The total cleared volume on IEX for July was 2264 million units, which was higher than last month when around 2,114 million units were cleared. The regions of North-East, East and North were the net sellers of electricity whereas Western and Southern regions were the net buyers. This trend has reversed for North and West when compared to June when Northern region was the net buyer and West was the net seller of power.

About 500 million units were lost due to congestion in the transmission network which restricts the flow of electricity from one region to another, read media statement by IEX.

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