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Gujarat Urja Vikas Nigam Ltd., the State-owned electricity utility of Gujarat, emerged as the biggest seller of power on the IEX — the country's largest electricity bourse — during the twelve months of 2010-11. BSES Rajdhani, one of Delhi's three private distribution utilities, came in next, followed by the Chhattisgarh State Electricity Board.
On the other hand, the Tamil Nadu Electricity Board (TNEB) was the biggest buyer of electricity on the IEX during the year. This was mainly on account of a desperate electricity buying spree by the utility just prior to the Assembly elections earlier this year, clearly borne out of the high weighted average price of close to Rs 5 a unit forked out by the utility. Tamil Nadu alone accounted for over 17 per cent of the electricity bought through the IEX last fiscal.
Southern utilities buy big
It was followed by Uttar Pradesh Power Corporation Ltd, Rajasthan's Jaipur Vidyut Vitran Nigam Ltd and the Maharashtra State Electricity Distribution Company. According to the data, dominant sellers on the power exchanges, as also those selling through licensed traders, are a mixed group comprising independent power producers, distribution companies, state government agencies and captive power plants. The major buyers through trading licensees and at power exchanges are mostly Northern and Southern region distribution companies and state electricity boards.
PROCUREMENT PRICE
Nearly all of the top buyers such as Tamil Nadu, Uttar Pradesh, Rajasthan, Maharashtra, Andhra Pradesh and Kerala bought electricity from the IEX's day-ahead market at prices higher than the weighted average price of Rs 3.38 a unit for the entire twelve months on the bourse. In case of PXIL, the second largest electricity bourse in the country, Gujarat Urja Vikas again was the biggest seller, even though it accounted for an overwhelming 55 per cent of the total transaction on that exchange.
Of the total electricity procured in the country in 2010-11, the short-term power market accounts for only around 10 per cent of the total power generation in the country. The balance 90 per cent is procured mainly by distribution companies through long-term contracts and short term intra-state transactions.
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