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CERC extends price cap on power exchanges for 3 months till Dec 31

CERC extends price cap on power exchanges for 3 months till Dec 31

CERC extends price cap on power exchanges for 3 months till Dec 31
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By Anand Singha  Sept 29, 2022 6:22 PM IST (Updated)

The power supply situation has improved in recent months, but the rising trend of demand due to the upcoming festivals may put pressure on market prices again without a corresponding rise in supply in the power exchange market.

The Central Electricity Regulatory Commission (CERC) announced on Thursday, September 29, that the price cap on power exchanges has been extended for three months until December 31 in order to protect consumer interests.

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CERC noted that increased power demand from both residential and commercial customers is expected despite a drop in temperature, .
The power supply situation has improved in recent months, but the rising trend of demand may put pressure on market prices again without a corresponding rise in supply in the power exchange market.
The order said, based on the assessment of demand-supply position in the power sector, the demand is expected to be high because of the festive season, in addition to pressure from lighting and heating loads, with agricultural load predicted to remain high over the following several months due to the harvesting of kharif crops and the sowing of winter crops.
According to CERC, the domestic coal stock from October to December appears to be well-positioned, compared to the same period last year. This will be handy when wind and hydro power generation declines, as anticipated for October, placing a strain on coal supply.
CERC said it has reviewed the situation in the power market, as well as other variables influencing demand and supply. While analysing the past trend, it observed that peak demand has been fluctuating and touched 199 GW on September 7.
It said the expected morning and evening peaks demand will be substantial in winter owing to lighting and heating load. Peaks are anticipated to become steeper during winter season.
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