Power utilities, exchanges against capping of electricity prices - Central Electricity Regulatory Commission keeping an eye on movement of prices

Most power companies and exchanges are opposed to the Central Electricity Regulatory Commission's (CERC's) proposal to cap electricity prices. They feel the move may affect competitive rates being discovered in tariff-based bidding.The country's nodal power regulatory agency, in a discussion paper, argued that the Electricity Act, 2003, empowers it to regulate rates in case of shortages to ensure reasonable prices. CERC is also mandated to develop competitive power markets, including trading. CERC also observed that there were instances wherein power sellers made abnormal profits without undertaking much risk. CERC admitted prices were declining, though they were still on the higher side. Internationally, prices were in the range of Rs 2.50-3.50 per unit, while currently prices on exchanges were at Rs 3.50 to Rs 4.85 per unit.