The IPPAI said the Ministry of Power needs to address issues by taking into account the observations and comments of all the stakeholders involved. (Agencies)
In his presentation at the round table to discuss the issues in short-term power market, IPPAI Director General Harry Dhaul said, “At this stage, the short-term power market needs no new regulation or changes.”
The Power Ministry has proposed to bring in certain changes in the ambit of short-term power market and has requested for comments on the proposal and model agreement documents.
Dhaul said the short-term power market is commonly understood to be a platform where a buyer and a seller meet their power requirements, which may have arisen due to any uncertainty.
"At present, the price in the short-term market is determined by a process of competitive bidding and the successful bidder is allotted to sell power in the market to tentative buyers," he said in his presentation.
"Bringing in two part tariff structure is not feasible. It may eliminate the small generators," he said.
Two-part tariff is the tariff, which separates the fixed cost and the variable cost.
Restriction on use of concessional fuel may hamper the interest of procurers by way of increased tariff. Strict qualification criteria would mean that small players are almost negated.
The present draft will make the whole process very lengthy, he said.
The IPPAI said the Ministry of Power needs to address issues by taking into account the observations and comments of all the stakeholders involved.