The power tariff on Sunday the 30th of September 2018 touched a decade -high due to low hydro and wind energy production and coal shortage at thermal plants. The spot power price for supply touched 17.61/unit in spot trading on IEX on Sunday. The average spot power price was also high at INR 7.64/unit at the stock exchange on the same day. The power price has seen an upward trend in the day-ahead market (DAM) with 14.09/unit last week. A total of 271 MU (million units) were sold for supply on Monday. In the DAM trading session which concluded on Sunday at IEX, there were buy bids for 306 MU against sell bids for 357 MU.
The average spot price MCP trend for the past week is as below:
The upward trend of the power tariff suggests that the prices discovered on the exchange has taken an uphill and buyers now are residing to other options than exchanges for power purchase. Notably, there has also been a coal shortage in the power plants and the power minister of the country has asked the state power generators to strengthen their coal mining wing.