Power trading by PTC: 18,000 MUs targeted for FY 2010-11

Considering the uncertainty of the short-term electricity trading market and reduced availability of surplus power from Bhutan, PTC has targeted to trade a total of 18,000 million units (MU) during the current fiscal of 2010-11. Out of the total, shares of long-term, short-term and cross-border trades are estimated to be 2,000 MUs, 11,000 MUs and 5,000 MUs, respectively. The realization of this target will imply a 1.29% decline over the actual trade of 18,236 MUs in FY 2009-10. 

Further, the utility has estimated that it will generate a profit before tax (PBT) of Rs 86.45 crore for the current fiscal, including Rs 83.5 crore from its power trading business. Over the course of the year, PTC expects to generate revenues worth Rs 7,620.40 crore, whereas the utility is likely to spend a sum of Rs 7,533.96 crore over the same period. The contribution of its power trading business to the utility's revenue generation and expenditure for the fiscal will be of the order of 7,580.40 crore and Rs 7,496.91 crore, in that order. Significantly, the power trader has set itself a target of realizing a weighted average trading margin of 4.8 paisa/kWH this fiscal, a 50% surge over the last year's realization of 3.2 paisa/kWH.
Pertinently, incorporated in 1999, PTC is the leading provider of power trading solutions in India, focusing primarily on the development of a commercially vibrant power market in the country. The utility seeks to provide holistic services that address the sustainability of a power market model, including intermediation for long-term supply of power from identified domestic and cross-border power projects, financial services like providing equity support to projects in the energy value chain, advisory services and foray into providing fuel linkages to power plants of various utilities / generators participating in the power market.