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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