The Central Electricity Regulatory Commission (CERC) has sought an explanation from the two power exchanges, IEX and PXIL, based on feedback from states that the bourses allegedly introduced unapproved products in the term-ahead markets in April amid huge power demand.
The regulator initiated suo motu action as the power exchanges started T+1 contracts, which enable settlement in 24 hours, without permission. The states alleged that the power exchanges enabled sellers to move to the uncapped term-ahead market, a bilateral market, said people aware of the matter.
