Major policies and regulations affecting the trading scenario
Inception of Power Trading Corporation, 1999
- Facilitator for market participant in finding counterparts.
- Low volume relative to huge demand.
Availability Based Tariff, 2002-03
- Incentive for generator for efficient operations and central dispatching.
- Grid security problems due to over drawl on high UI charges.
Electricity Act, 2003
- Identified trading as a distinct licensed activity.
- Provided provision for open access.
- De-Licensing of Generation.
- Development of multi buyer & multi seller market in power.
- Introduced trading & competitive bidding for procurement of electricity.
National Electricity Policy, 2005
- Measures to promote competition aimed at consumer benefits.
- Promote competition for optimal pricing of power.
Open Access Regulations, 2008
- Impetus for bilateral trading.
- Bilateral trading based on voluntary agreement of participants.
- Lacked transparency in price discovery.
- Transaction cost hindered smaller players from entering market.
- Separation of transmission ownership and system operation.
- Universal open access to transmission networks.
Power exchange, 2008
- The electricity prices in transparent manner.
- Facilitating efficient trading among the player.
- Easy access to new entrants is possible.
- Clear signals for capacity addition.
National action plan on climate change, 2008
- Promotion of renewable power market through power exchanges.
- Introduction of REC trading.
Power market regulations, 2010
- Providing a regulatory framework for competitive markets.
- Guidelines and prudential norms for setting up and operating power exchanges.
Guidelines on listing contracts on power exchanges.
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