In a development that is expected to benefit the UP Power Corporation Ltd (UPPCL) and its consumers, the Central Electricity Regulatory Commission (CERC) has capped the cost of power to be sold by energy exchanges at ₹12 per unit, people aware of the issue said.
The UPPCL had to buy power from the energy exchanges at a price as high as ₹20 per unit during the nationwide coal crisis in September-October last year. “Commission in exercise of powers under Regulation 51 (1) of PMR 2021 directs the power exchanges until further orders, to re-design, with immediate effect, the bidding software in such a way that members can submit their bids in the price range of Rs0/kWh to Rs12/kWh,” the CERC said in its order on April 1.
The commission noted that such abnormally high price ( ₹20 per unit), even for a short period, without any significant impact on increase in supply was not only against consumer interest but also eroded the buyer’s confidence in the market’s credibility.
