When coal inventory at thermal power plants dropped to critically low levels last October, spot electricity rates climbed to record levels of ₹6 per unit.
Prices in the spot electricity market have since dropped to unusually low levels, touching ₹1 per unit this week. Average prices in May, the peak summer month, were 44% less than the average prices last October.
The fall coincides with the moderation in coal prices in international markets. Besides, the price reduction is made possible by the improvement in fuel inventory levels at thermal power plants.
