New Delhi: The Power Ministry is likely to come out with competitive bidding guidelines for short-term procurement of electricity by distribution entities soon.

The new norms, for procurement period of less than one year, would be framed to ensure better transparency in the process and also to bring down the overall power cost for the consumers.

"We have discussed the proposed norms for short-term procurement of power with concerned entities. We expect to finalise the guidelines for the same soon," a senior Power Ministry official said.

Apart from increasing transparency, the competitive bidding guidelines would also help in standardising the whole process, he said.

Currently, the short-term power market comprises about 10 percent of the total electricity procured in the country.

At present, the per unit electricity tariff through short term procurement is around Rs 4.

State-run Power Finance Corporation (PFC) had come out with draft guidelines for short term power procurement by distribution licensees through tariff-based bidding process. Power exchanges are not included in the same.

As per the draft norms, the minimum time-frame of ten days should be given for completion of the bidding process.

However, an official of a leading power trading company opined that standard norms could restrict short term power market and is unlikely to bring down tariffs.

Going by trends, the short term power procurement rate is around Rs 4 per unit and has come down from Rs 6-7 range in the past few years, the official added.