Power prices expected to see moderation

The latest data obtained from the Central Water Commission (CWC) shows that country’s power availability is expected to improve in the next couple of months due to increase in water levels in various reservoirs following the resumption of monsoon.

The water storage at the 81 reservoirs across the country, accounting for 14% of the total capacity of 151 billion cubic metres (bcm) of the reservoirs, have risen to 11% of the total capacity last week.

With this pleasant development, the country’s daily hydro power generation has also increased by nearly 12% in the last one month to touch around 310 million units currently. On the similar lines, with improving hydro power situation, the average price of power traded on the exchanges has also started subsiding back to normal levels.

The Indian Energy Exchange (IEX) data shows that the average price of electricity being traded has slipped to Rs 4.89 per kilowatt hour (one kilo watt hour is one unit) in the current month, as compared to Rs 6.19 per kilowatt hour last month when the reservoir levels were due to delayed monsoon, over 20% higher than the current level..

India’s first power exchange IEX has said that the prices are expected to come down further. The temperance in power prices on monsoon resumption is expected to lower the subsidy burden of state governments which otherwise would have to cough out more to procure power to tackle the electricity crisis.