Tariff-based bidding for power procurement-V: IEX, PXIL attain modicum of competitiveness

The two power exchanges in India finally seem to have settled on average tariffs that can compete in the Indian economy. After a long period of exceedingly high tariffs, in fact causing the CERC to fix price ceilings, both Indian Energy Exchange (IEX) and Power Exchange Corporation of India (PXIL) are offering palatable prices for power. From a weighted average tariff of Rs 10.10/kWh in April 2009, IEX finished the 2009-10 fiscal with an average tariff of Rs 5.33/kWh. The same trend was observed for PXIL, which witnessed a corresponding fall, from Rs 10.18/kWh, to Rs 6.47/kWh over the same period.

 IEX is India’s first, nationwide, automated, and online electricity trading platform. It was promoted by Financial Technologies India Limited and PTC India Limited, with Tata Power Company, Reliance Energy, Lanco Infratech, Adani Enterprises, Infrastructure Development Finance Company (IDFC) and Rural Electrification Corporation (REC) as key stakeholders. It commenced operations on June 27, 2008. Subsequently, PXIL was promoted by National Stock Exchange of India Limited (NSE) and the National Commodity & Derivatives Exchange Limited (NCDEX), as the country`s first institutionally promoted power exchange that provides innovative and credible solutions to transform the Indian power markets.The other stakeholders of PXIL include Power Finance Corporation Limited, Gujarat Urja Vikas Nigam Limited, West Bengal State Electricity Distribution Company Limited, Madhya Pradesh Power Trading Company Limited, JSW Energy limited, GMR Energy Limited and Tata Power Trading Company Limited.  PXIL started its operations on October 22, 2008.