27-663: The Indian Energy Exchange (IEX) is an Indian electronic system based power trading exchange regulated by the Central Electricity Regulatory Commission (CERC). IEX started its operations on 27 June 2008. Indian Energy Exchange pioneered the development of power trading in India and provides an electronic platform to the various participants in power market, comprising State Electricity Boards , Power producers (Gencos), Power traders, and Open Access Consumers (both Industrial & Commercial). IEX
54-464: A Memorandum of Understanding (MoU) with world-renowned USA's Federal Energy Regulatory Commission for Development and regulatory oversight of Power market, Grid Reliability, Energy Efficiency, Transmission and Distribution services in India. A system of single-part tariffs was in vogue in India for pricing of thermal power, prior to 1992. The single-part tariff for a station was calculated to cover both
81-609: A key regulator of the power sector in India , is a statutory body functioning with quasi-judicial status under sec – 76 of the Electricity Act 2003 . CERC was initially constituted on 24 July 1998 under the Ministry of Power 's Electricity Regulatory Commissions Act, 1998 for rationalization of electricity tariffs , transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, and for matters connected Electricity Tariff regulation. CERC
108-547: A liaison between the central government and state electricity operations, as well as with the private sector . The ministry also oversees rural electrification projects. The Ministry of Power became a ministry on July 2, 1992, during the P. V. Narasimha Rao government . Prior to that time it had been a department (the Department of Power) in the Ministry of Power, Coal and Non-Conventional Energy Sources. That ministry
135-474: A neutral platform where participants from different segments of the sector may participate and utilize the range of products and services to match their needs. The participants are required to bear a membership and participate in the bid for the respective product/service. The exchange has launched a range of products and are broadly classified as: Day Ahead, Term Ahead, Renewable Energy Certificates, and Energy Saving Certificates(Es Certs) Indian Gas Exchange (IGX)
162-666: A variant of a simple two-part tariff. The scheme provided for linking of incentive and disincentive with Plant Load Factor (PLF) plus deemed generation , which in effect is Plant availability . The serious problems of regional grid operation however continued even after 1992. This was because the K.P. Rao Committee had been able to tackle only one end; the Central generation side. Overdrawals by some State Electricity Board's during peak-load hours and under-drawals during off-peak hours continued unabated, causing serious frequency excursions and perpetual operational/commercial disputes. In
189-580: Is a wholly owned subsidiary of IEX, which involves in trading spot and forward contracts of Gas. The exchange has over 500 registered clients and 15 members. It currently operates from three physical hubs — Hazira , Dahej and KG Basin . Shareholding of IGX as on 10 Mar 2021: 26% – National Stock Exchange of India 5% – Oil and Natural Gas Corporation 5% – Adani Gas 5% – Torrent Gas 5% – GAIL Rest – Indian Energy Exchange and other Investors Central Electricity Regulatory Commission Central Electricity Regulatory Commission ( CERC ),
216-504: Is normally formulated in consultation with and taking into account the views of the Central Electricity Regulatory Commission (CERC), Central Electricity Authority (CEA), and state governments. CERC and State Electricity Regulatory Commission (SERC) are the two electricity regulators – one operating at the central level and the other at various state levels. CERC's primary function was to regulate
243-448: Is one of the two operational Power Exchanges in India. Ever since its incorporation, it has held an influential market share. IEX operates a day-ahead market based on closed auctions with double-sided bidding and uniform pricing; it has over 3,800 registered clients, over 300 private generators, and more than 3,300 industrial electricity consumers. 63 Moon Technologies Limited made an impulsive thrust into India's Power Sector by launching
270-517: The Electricity Act, 2003 envisages separate identity for CERC and CEA, and there is a necessity for separation in the short run, the two regulators should be merged eventually, as there are substantial synergies between them. But Ministry of Power rejected IIM-A's recommendations in this regard and observed that the tariff fixation is in the exclusive domain of electricity regulatory commissions (ERCs), and no other entity or government has any role in this regard. On 1 September 2009, CERC has entered into
297-615: The Indian Energy Exchange along with PTC India . The aim of the promoters was to magnify the unexplored potential of the Indian Power market and abridge the demand supply gap. Thereby creating a marketplace wherein players from different purposes may garner business potential. The concept of power exchange in India had its genesis in the year of 2005, post which, Financial Technologies Limited and Multi Commodity Exchange together yielded an application for setting up
SECTION 10
#1732797155165324-500: The Commission departs significantly from the draft notification as also from the prevailing tariff design Tariff for supply of electricity shall comprise two parts: The annual fixed cost (AFC) of a generating station or a transmission system shall consist of the following components The Energy charge shall cover the primary fuel cost and limestone consumption cost (where applicable), and shall be payable by every beneficiary for
351-561: The Electricity (Supply) Act 1948 to the CERC with effect from 15 May 1999, GOI forwarded the above draft ABT notification to CERC vide OM dated 31.5.1999 for finalization after due deliberation. The draft notification was then issued through a public notice and comments/objections were invited. The Commission in July 1999 held detailed hearings on the above. The ABT order dated 4 January 2000 of
378-646: The Electricity Act, 2003, which is aimed at taking measures conducive to development of the electricity industry, promoting competition therein, protecting interest of consumers and enhancing supply of electricity. Ministry of Power (India) The Ministry of Power is an Indian government ministry . The current Union Cabinet Minister is Manohar Lal Khattar . The ministry is charged with overseeing electricity production and infrastructure development, including generation, transmission, and delivery, as well as maintenance projects. The ministry acts as
405-848: The Electricity Regulatory Commission Act of 1998, which mandated the creation of the Central Electricity Regulation Commission with the charge of setting the tariff of centrally owned or controlled generation companies. The Ministry of Power , India, has published the Electricity Regulatory Commissions Act, 1998. Apart from CERC, the act also introduced a provision for the states to create the State Electricity Regulation Commission (SERC) along with
432-456: The Ministry of Power in February, 1995 to oversee the implementation of ECC's recommendations. Based on NTF deliberations between 1995 and 1998, Ministry of Power had crystallized the formulation for the so-called Availability-based tariff (ABT). With the spirit of the Electricity Regulatory Commissions Act 1998 and consequent upon transfer of relevant powers vested under section 43 A (2) of
459-569: The aggrieved person from getting the order. Since 1 April 1999 CEA has entrusted CERC with the task of regulating power tariffs of central government power utilities, inter-state generating companies, inter-state transmission tariffs. Section −76 of Electricity Act, 2003 stipulates that CERC shall consist of a Chairperson and three other Members. And one of the CERC members (Ex-Officio) has to be Chairman of CEA. In Indian Power Sector, CEA takes care of: Whereas CERC take care of third aspect of power sector regulation - National electricity policy
486-585: The electricity industry have failed in their efforts. There was a proposal of having benches of the Central Electricity Regulatory Commission (CERC) in five to six locations instead of having a SERC in each state, but the Committee that has rejected the proposal stating it was not possible unless states were willing to accept such a proposal. MoP entrusts CERC for providing escalation rate for coal and gas, inflation rate based on WPI and CPI , discount rate , and dollar-rupee exchange variation rate for
513-415: The fixed cost as well as the variable (energy) cost at a certain (normative) generation level. Demerit: Finding that the single-part tariff, particularly for Central generating stations, was conducive neither to economic generation of power as per merit-order, nor to satisfactory operation of the regional grids, the government of India adopted in 1992 a two-part tariff formula for NTPC stations based on
540-402: The nation's first power exchange. Since its development on 9 June 2008, IEX had recorded 37.4 million transactions, the same month that electricity prices on the exchange hit a record low 13 paisa/KWh. In November 2009, IEX won Best E-Enabled Customer Platform at the second annual India Power Awards for developing what was described as "a robust platform for energy trading. IEX was envisioned as
567-530: The power to set the tariffs without having to enact separate state laws. Mr.S.L.Rao was the first Chairman of CERC (1998–2001). During March 2004, Indian Institute of Management Ahmedabad (IIM-A) called for the merger of the Central Electricity Authority (CEA) and Central Electricity Regulatory Commission (CERC) on the grounds that technical and economic regulatory functions need to be carried out in close coordination. Even though
SECTION 20
#1732797155165594-519: The purpose tariff determination. Central Electricity Regulatory Commission (CERC) has issued the Power Market Regulations, 2010 which will govern transactions related to ‘'Energy trading'’ by companies like Indian Energy Exchange (IEX) , Power Exchange India (PXI) , National Power Exchange (NPX) in various contracts related to electricity. The regulations have been issued by the CERC in exercise of its powers under section 66 of
621-478: The recommendations of the KP Rao Committee. Recognizing that there would be no motivation on the part of NTPC (Central generating stations) to maintain a high level of efficiency and availability if it was paid the full fixed cost irrespective of level of generation and variable cost for the quantum of energy actually generated, the K.P. Rao Committee had recommended a scheme of incentive/disincentive, as
648-601: The tariffs of central generating stations as well as for all interstate generation, transmission and supply of power. Whereas SERC's primary function was to determine bulk and retail tariffs to be charged to customers, regulate the operations of intrastate transmission, including those of the State Load Despatch Center (SLDC). During Parliamentary Standing Committee on Energy in the year 2001, SERC being established in states, for formulating standards relating to quality, continuity and reliability of service for
675-628: The total energy scheduled to be supplied to such beneficiary with fuel and limestone price adjustment Appellate Tribunal for Electricity has been established by Central Government for those who are not satisfied with the Central Electricity Regulatory Commission order or with a state. The Tribunal has the authority to overrule or amend that order, just like the Income-Tax tribunal or the Central Administrative Tribunal. The tribunal has to be approached within 45 days of
702-594: The year 1994, M/s ECC of USA were commissioned under a grant from the Asian Development Bank to undertake a comprehensive study of the Indian power system and recommend a suitable tariff structure. ECC submitted their report in February, 1994, recommending Availability Tariff for generating stations, which was accepted in principle by GOI in November, 1994. A National Task Force (NTF) was constituted by
729-495: Was instituted primarily to regulate the tariff of power generating companies owned or controlled by the Government of India , and any other generating company which has a composite scheme for power generation and interstate transmission of energy , including tariffs of generating companies. On 2 July 1998, recognizing the needs for reforms in the electricity sector nationwide, the Government of India moved forward to enact
#164835