Power Systems Corporation (Posoco) on August 18, 2022, has reportedly instructed the three power exchanges in the country to restrict select discoms from trading on the exchanges’ platform.
It is learnt that Posoco has formally written to the three power exchanges – Indian Energy Exchange (IEX), Power Exchange of India (PXIL) and Hindustan Power Exchange (HPX) – to restrict 27 discoms across 13 states from trading on the platform of these exchanges. The directive has been issued in the wake of non-payment of dues by discoms to generation companies.
The debarred states/UTs include Telangana, Tamil Nadu, Rajasthan, UT of Jammu & Kashmir Andhra Pradesh, Maharashtra and Karnataka. The total outstanding dues of these aforementioned states/UTs is Rs.4,761 crore, out of a total of Rs.5,085 crore.
It is further learnt that states, Telangana for instance, will challenge Posoco’s move in court while others like Andhra Pradesh have already announced plans to start clearing their dues.
Trading by state discoms usually takes place in the day-ahead market (DAM) and it is estimated that discoms together account for around 7 per cent of the total trading volume.
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Incidentally, IEX reported that trading volumes on its DAM platform, at 3517 MU (million units or million kwh), were 17 per cent lower over those in June 2022. The market clearing price also fell 17 per cent to Rs.5.41 per kwh in July 2022 from Rs.6.49 per kwh in June 2022.
