India-Sales of electricity through short term transaction has came down 13% Q-o-Q to 30775.6 MU during the first quarter of CY19 (Jan’19-Mar’19) against 35343.9 MU in fourth quarter of CY18 (Oct’18-Dec’18).
Sales volume were however almost stable on the y-o-y basis as compared with 30757.33 MU in Q1 CY18, as per the data provided by CERC.
In general, short-term transactions of electricity refer to the contracts of less than one year period, for electricity transacted (inter-State & intra-State) through trading licensees and directly by the distribution licensees, Power Exchanges (Indian Energy Exchange Ltd (IEX) and Power Exchange India Ltd (PXIL), and Deviation Settlement Mechanism (DSM).
During Q1 CY19, volume of electricity sold through short-term contracts had accounted for 10% of the country’s net power generation of 298332.29 MU (excluding generation from renewable and captive power plants).
Of the total short-term transactions in the period, bilateral exchanges accounted for half of the electricity transaction marked at 15287.28 MU. Share of transaction through energy exchanges was 31% while remaining contract were made though DSM.
Electricity Transactions in Mar’19: Sales volume though short-term transactions rebounded after falling in Feb’19. Sales were marked 16% higher on the month at 10910.45 MU (Million Unit) in Mar’19, while going down 6% Y-o-Y against 11653.05 MU in Mar’18.
CERC allows compensation on Power Plants’ coal import:
CERC has permitted the power plants to claim the extra cost of imported coal in electricity tariff, if CIL fails to meet their supply commitments.
Power plants will now be able to import coal in case of domestic coal shortage, and in turn acquire the allowable compensation. The dispensation was available to the power companies till Mar’17.
GMR Energy, which filed the petition claiming pass-through of extra fuel cost before the CERC, will be the immediate beneficiary of the decision. Besides, it will also have a significant impact on the power sector that is grappled with stressed assets.
CERC has clarified that power plants receiving coal under the Shakti scheme are also entitled for compensation for any shortfall in supply of annual contracted quantities by CIL.
The compensation on account of coal shortage would be worked out according a formula prescribed by the CERC on a case to case basis.
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