The Central Government has amended the rules regarding late payment surcharges in the power sector. These amendments likely aim to address issues related to delayed payments by DISCOMs to power generators.
The amendments now allow long-term power generators to sell power in the short-term market. This provision offers flexibility to power generators to explore additional avenues for selling their generated power beyond their long-term contracts.
With the increased liquidity resulting from the amendments, the volume outlook for power exchanges such as IEX is expected to improve. IEX shares were trading 1.41% up on BSE around 12.40 pm.
More participants may be attracted to the exchanges due to enhanced trading opportunities and liquidity, leading to higher trading volumes.
Generally, long-term power generators are permitted to sell power in the short-term market under specific conditions. For example, if they do not receive the schedule from DISCOMs within a certain timeframe.
DISCOMs are mandated to provide their schedule to power generators within a stipulated timeframe. Specifically, they must give their schedule to power generators two hours before the day-ahead market starts.
If power generators do not receive the schedule from DISCOMs within the specified timeframe, they have the option to sell their power in the real-time market.
