Commodities

IEX volume declines 15% in May due to cyclone, lockdowns

Our Bureau New Delhi | Updated on June 07, 2021

On a month-on-month basis, the average monthly price during May declined 24 per cent to ₹2.83 per unit.

Trading on Indian Energy Exchange Ltd’s electricity market during May declined 15 per cent over the previous month to 6.5 billion units, the firm said on Monday.

The continuation of local Covid-19 lockdowns and the cyclonic disturbances that affected the country’s overall power demand led to this fall, IEX said in a statement.

 

This is the second consecutive month-on-month fall in IEX’s market volume. In April, trading had fallen by 6.6 per cent from an all-time high of 8.25 billion units during March.

During May, the total electricity consumption fell by 7 per cent on a month-on-month basis to 111 billion units. IEX’s May volume is 9 per cent higher on a year-on-year basis largely due to the nationwide lockdown during May 2020. National electricity consumption has similarly grown 8 per cent on a year-on-year basis to around 111 billion units.

IEX’s day-ahead market traded 4.4 billion units during May, a month-on-month fall of 23 per cent. This follows a 13 per cent month-on-month fall in April.

 

The average monthly price during May was ₹2.83 per unit, a steep decline of 24 per cent on a month-on-month basis. IEX had blamed the rise in prices last month on an “increase in demand and a sharp slump in electricity prices in April 2020 due to a stringent nationwide lockdown.”

Published on June 07, 2021

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