India lowers electricity price ceiling, maximum price down by Rs 8 per unit
The Indian government’s Central Electricity Regulatory Commission (CERC) revised the Power Market Regulation, 2021 to lower the IEX’s electricity ceiling.
Previously, the maximum was Rs 20. In other words, at Indian Energy Exchange(IEX), power could be purchased at a maximum of Rs 20 per unit.
However, the Central Electricity Regulatory Commission of India (CERI) stated that the cap was cut due to increased demand for electricity and a lack of supply, which resulted in high pricing and unfavorable competition.
Nepal had also offered to purchase electricity at a rate of Rs 20 per unit last year after India lost access to inexpensive electricity. The Nepal Electricity Authority (NEA) should also benefit from the decrease in the price of electricity purchased and sold on the IEX.
Now, the buyer must acquire 99 percent of entire electricity within one day for 12 rupees, with only 1% of total electricity accessible at a higher price.
India’s demand for power has increased significantly, but output is dropping due to a coal and natural gas scarcity. India’s electricity demand surpassed 199 gigawatts in March.
In India, the Central Power Regulatory Commission sets the price of electricity that can be purchased and sold in the ‘Day Ahead Market’ and the ‘Real Time Market’.