“Under the leadership of the Ministry of Power and with the contribution of all key stakeholders spanning various arms of the Government of India, Regulatory bodies like CERC and SEBI and organizations like PXIL and others, a ten year old regulatory jurisdiction issue regarding power markets has now been fully clarified and resolved. It is a significant achievement by the Ministry of Power in bringing together all the stakeholders and in a cooperative manner lead the resolution of this hitherto intractable issue.
This paves the way for introduction of various delivery-based contracts with longer duration on PXIL. distribution companies and other large consumers would be able to utilise such contracts to better plan their portfolio requirements in a more efficient and transparent manner. Such contracts effected through the power exchange would ensure payment timeliness and guarantees.
Financial contracts including electricity derivatives can also now be launched by exchanges regulated by SEBI, thus paving the way for suppliers and consumers to hedge their power transaction risks effectively. This is a major inflection point for the power sector and especially the power markets in our country and we look forward to serving all power consumers in the most efficient manner.”
Prabhajit Kumar Sarkar expressed this view shortly after the Supreme Court order of October 7, 2021, that settled the long-pending dispute between SEBI and CERC on the issue of regulatory jurisdiction of electricity derivatives. (Read background story)
Also Read: Exclusive T&D India interview with Prabhajit Kumar Sakar (July 2021)
