In ICRA’s view, implementation of e-bidding with reverse auction for short term power procurement will bring down power tariffs by a paltry 4-5 paise per unit. <\/p>\n
It would benefit both discoms and their end consumers. Procurement through such mode would result in a competitive price discovery in a more transparent manner. <\/p>\n
“We expect average traded bilateral price levels on all India basis to moderate by about 50-60 paise per unit, which implies a decline by about 13% over the prevailing bilateral traded price level”, said Sabyasachi Majumdar, senior vice president, ICRA Ratings. <\/p>\n
The power ministry, has recently notified amended guidelines for procurement of power by distribution utilities on short term basis for a year through a competitive bidding. <\/p>\n
Effective April 1, 2016, such procurement by discoms shall be on an electronic platform based reverse auction system. <\/p>\n
Under assumption of cost-plus tariffs for discoms and a 10.5% share of short-term traded power in the total procurement mix, average retail supply tariff is expected to ease by about 4-5 paise per unit for end consumers on a national basis. <\/p>\n
Discoms with relatively higher dependence on short term power, especially in south, could benefit even higher believes ICRA. <\/p>\n
“While reverse auction based procurement of short term power is beneficial for discoms, in our view it is a negative for power generation capacity which sell a substantial part of its output through bilateral short term power purchase agreements,” Majumdar said. <\/p>\n
Share of short-term power transactions in the overall electricity generation in the country has been hovering between 10% and 11% over the past 5-6 years. <\/p>\n
In terms of mix of short-term traded power, bilateral route based traded power continues to have the highest share in the range of 52-53% followed by power exchange transactions at 29%. Higher share of bilateral transactions can be attributed to the certainty of supply and tariff rates for the discoms.<\/p>\n","protected":false},"excerpt":{"rendered":"
In ICRA’s view, implementation of e-bidding with reverse auction for short term power procurement will bring down power tariffs by a paltry 4-5 paise per unit. It would benefit both discoms and their end consumers. Procurement through such mode would result in a competitive price discovery in a more transparent manner. “We expect average traded bilateral price levels on all India basis to moderate by about 50-60 paise per unit, which implies a decline by about 13% over the prevailing bilateral traded price level”, said Sabyasachi Majumdar, senior vice president, ICRA Ratings. The power ministry, has recently notified amended guidelines […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[132],"tags":[],"class_list":["post-65097","post","type-post","status-publish","format-standard","hentry","category-power"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/65097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=65097"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/65097\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=65097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=65097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=65097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}