Lok Sabha Question No. 1049 (UNSTARRED), answered on 2018-02-08
Subject: Price of Power
Ministry: POWER
Asked by: JAYAKUMAR JAYAVARDHAN, VIJAYSINH MOHITE PATIL, P.R. SUNDARAM, DHANANJAY BHIMRAO MAHADIK

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.1049 TO BE ANSWERED ON 08.02.2018

## PRICE OF POWER

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

1049. DR. J. JAYAVARDHAN: SHRI P.R. SUNDARAM: SHRI DHANANJAY MAHADIK:

Will the Minister of POWER be pleased to state:

- (a) whether  the spot market  power  prices  and  Indian Electricity Exchange prices have risen unexpectedly high during the last three years;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether these increased prices are affecting the consumers, if so, the details thereof; and
- (d) the steps being taken by the Government to address the issue?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER AND NEW & RENEWABLE ENERGY

( SHRI  R. K. SINGH )

(a) & (b): There  are  two  power  exchanges  in  India  i.e.  Indian  Energy Exchange (IEX) and Power Exchange India Limited (PXIL), where electricity  is  being  traded.  The  electricity  prices  are  discovered  on  Day Ahead Market (DAM) of these power exchanges in every 15 minutes time block. These prices fluctuate in every time block, leading to fluctuations in a day, depending upon the electricity demand and supply position in the market at any given point in time.

.........2.

The weighted average prices on DAM  of these power exchanges during the last three years are as under:

| Year    |   Price on IEX (Rs/kWh) |   Price on PXIL (Rs/kWh) |
|---------|-------------------------|--------------------------|
| 2014-15 |                    3.49 |                     3.09 |
| 2015-16 |                    2.72 |                     2.66 |
| 2016-17 |                    2.48 |                     2.56 |

It can be seen from the above table that the average market clearing  prices  of  electricity  traded  through  power  exchanges  have decreased significantly over the last three years.

However,  there  were  certain  instances  when  spot  market power prices have reached up to the level of Rs 9 to Rs 11 per kWh in some 15 minutes time blocks during some of the days during the month of September'17  -  November'17.  The  details  are  given  in  the  Annexure. Monthly  average  Market  Clearing  Prices  (MCP)  in  the  Indian  power exchange  during  these  months  were  Rs  4.09/Kwh  (September'17),  Rs 4.08/Kwh (October'17) and Rs 3.55 (November'17).

(c) & (d) : The  share  of  electricity  traded  through  power  exchanges  is only  about  3%  of  the  total  electricity  being  consumed  in  the  country. Hence, the impact of any short term fluctuations, during 2 to 3 time blocks of  15  minutes  each  out  of  total  96  time  blocks  in  a  day,  in  electricity prices,  in  the  power  exchange  would  have  insignificant  effect  to  the consumers. However, through appropriate Regulations, Central Electricity Regulatory Commission ensures fair, neutral, efficient and robust functioning of power exchanges in India.

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ANNEXURE

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  &  (b)  OF  UNSTARRED QUESTION NO. 1049 TO BE ANSWERED IN THE LOK SABHA ON 08.02.2018. *********** Maximum price discovered during 15 minutes time block

| Delivery Date   | Block No.   | MCP (`/kWh)   |
|-----------------|-------------|---------------|
| September, 2017 |             |               |
| 9-Sep-17        | 78          | 9.00          |
| 9-Sep-17        | 79          | 9.00          |
| 9-Sep-17        | 80          | 9.00          |
| 11-Sep-17       | 77          | 9.20          |
| 11-Sep-17       | 78          | 9.20          |
| 11-Sep-17       | 79          | 9.20          |
| 11-Sep-17       | 80          | 9.20          |
| 12-Sep-17       | 77          | 9.30          |
| 12-Sep-17       | 78          | 9.30          |
| 12-Sep-17       | 79          | 9.61          |
| 12-Sep-17       | 80          | 9.30          |
| 13-Sep-17       | 79          | 9.91          |
| October, 2017   |             |               |
| 6-Oct-17        | 77          | 9.23          |
| 6-Oct-17        | 78          | 9.00          |
| 16-Oct-17       | 73          | 10.00         |
| 16-Oct-17       | 74          | 10.00         |
| 16-Oct-17       | 75          | 10.00         |
| 16-Oct-17       | 76          | 10.00         |
| 16-Oct-17       | 77          | 9.08          |
| 17-Oct-17       | 71          | 9.44          |
| 17-Oct-17       | 72          | 10.00         |
| 17-Oct-17       | 73          | 10.00         |
| 17-Oct-17       | 74          | 10.00         |
| 17-Oct-17       | 75          | 10.80         |
| 17-Oct-17       | 76          | 10.80         |
| 17-Oct-17       | 77          | 10.00         |
| 17-Oct-17       | 78          | 10.00         |
| 17-Oct-17       | 79          | 10.00         |
| 17-Oct-17       | 80          | 10.00         |
| 17-Oct-17       | 81          | 10.00         |
| 17-Oct-17       | 82          | 10.00         |
| 17-Oct-17       | 83          | 10.00         |
| 17-Oct-17       | 85          | 10.00         |
| 17-Oct-17       | 86          | 10.00         |
| 17-Oct-17       | 87          | 10.00         |
| 17-Oct-17       | 89          | 9.50          |
| 18-Oct-17       | 77          | 11.55         |
| 18-Oct-17       | 78          | 11.10         |
| 27-Oct-17       | 74          | 11.12         |
| 27-Oct-17       | 75          | 11.14         |
| 27-Oct-17       | 76          | 11.12         |
| 27-Oct-17       | 77          | 10.57         |
| 27-Oct-17       | 78          | 10.00         |
| 27-Oct-17       | 79          | 9.00          |
| November, 2017  |             |               |
| 9-Nov-17        | 74          | 9.75          |
| 10-Nov-17       | 74          | 9.00077       |
| 10-Nov-17       | 75          | 9.00037       |
| 11-Nov-17       | 74          | 9.0001        |
| 13-Nov-17       | 73          | 9.00002       |
| 13-Nov-17       | 74          | 9.00034       |

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