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Maximum rate of traded power now fixed at Rs 8 per unit

Providing a major relief to the power-starved state utilities, the Central Electricity Regulatory Commission (CERC) has capped the rate of power traded in power exchanges and through bilateral agreements at Rs 8 per unit. This order is applicable to power traded on a day ahead basis and will remain in force till October 26.

Earlier, the CERC in an interim order had capped the power rates at Rs 11 per unit. Alarmed by a sharp increase in rates of power traded on a day ahead basis, the commission had taken suo motu cognisance of the disturbing trend and issued an interim order in August.

On account of unforeseen bad monsoons and drought-like conditions, the prices and volatility had risen significantly. Such abnormally high prices, even for a short period, was not only harmful to the consumers but would also erode the buyer’s confidence in the market’s credibility, the order stated.