Power trading exchange work on the anvil: CERC

Work on the much awaited power trading exchange may start soon with the Central Electricity Regulatory Commission recommending that the exchange be a counter party to all trades, provide payment security to suppliers and adopt the marginal pricing principle.

In a consultation paper, the commission has also proposed that the exchange follow the market-splitting model.

The commission (CERC) has asked for suggestions on this by August 31. After that, it plans to hold open consultations with stakeholders.

"The development of an electricity market and power exchange are responsibilities assigned to us under the Electricity Act and the government policies. The staff paper should be a good start for getting suggestions from all stakeholders. The timing has to be discussed as we have to move ahead," AK Basu, chairman, CERC told Buisness Standard.