According to reports, to ensure optimum utilisation of electricity, Chief of the power exchange, IEX, Jayant Deo has suggested different pricing of power depending on the needs of consumers.
Deo stepped down on Friday as Managing Director and CEO of Indian Energy Exchange after being at the helm since its inception nearly four years ago. He would remain as advisor to the bourse.
According to him, supply of electricity to consumers could be classified into three broad categories – essential services, living needs and luxury and commercial needs.
“All three should have different pricing (of electricity) and cheap power could be kept for essential use,” Deo told PTI.
Such a system could help in ensuring optimal utilisation of electricity, amid the country grappling with severe power shortage.
With a market share of around 95 per cent, IEX – part of Financial Technologies group – is the country’s largest power exchange. The bourse went live in June 2008.
Deo said at present, only about two per cent of total electricity generated in the country is coming to power exchanges.
“The market is evolving…,” Deo said in response to a query about the performance of Indian power exchanges market.
“The exchange’s business depends on volumes and number of participants and they were less than a dozen when we started four years back. Today, we are 600 plus participants.
“Earlier, we were doing small volumes, now it is about 60 to 65 million units (of electricity) every day,” he said.
India has two power bourses – IEX and Power Exchange India Ltd (PXIL). On these exchanges, the prices of electricity are discovered on a day-ahead-market basis. The price is discovered every 15 minutes.