As power generation falls, transmission companies, private producers make a killing on exchanges

NEW DELHI: Private power producers and some state transmission utilities appear to be making a killing by selling electricity on the exchanges where rates have tripled owing to lower generation as a result of coal shortage, even as power secretary Alok Kumar asked states to watch out for generators gaming the market and take legal action if imported coal-based power plants refused capacity on any pretext.

Data from the power exchanges for October 13 show producers and state transmission companies selling electricity at Rs 16-18 per unit against the usual rate of Rs 4-6 prevalent before the coal shortage hit generation units.