Power Exchanges in IndiaPower Exchanges in India

Legal FrameworkLegal FrameworkNational Electricity Policy mandates the National Electricity Policy mandates the

creation of a Power Exchange -Para 5.7.1 (d) creation of a Power Exchange -Para 5.7.1 (d) "Development of power market would need to "Development of power market would need to be undertaken by the Appropriate Commission be undertaken by the Appropriate Commission in consultation with all concerned".in consultation with all concerned".

Electricity Act, 2003Electricity Act, 2003 - -"Section 66. The "Section 66. The Appropriate Commission shall endeavour to Appropriate Commission shall endeavour to promote the development of a market (including promote the development of a market (including trading) in power in such manner as may be trading) in power in such manner as may be specified and shall be guided by the National specified and shall be guided by the National Electricity Policy referred to in Section 3 in this Electricity Policy referred to in Section 3 in this regard."regard."

Cardinal EventsCardinal Events Delicensed generation.Delicensed generation. Non-discriminatory open access in transmission Non-discriminatory open access in transmission

mandated. mandated. Single buyer model dispensed with for the distribution Single buyer model dispensed with for the distribution

utilities. utilities. Provision for open access in distribution is to be Provision for open access in distribution is to be

implemented in phases.implemented in phases. Provision for multiple distribution licensees in the same Provision for multiple distribution licensees in the same

area of supply has been incorporated. area of supply has been incorporated. Electricity trading is recognized as a distinct licensed Electricity trading is recognized as a distinct licensed

activity. activity. Development of market (including trading) in electricity Development of market (including trading) in electricity

made the responsibility of the Regulatory Commission. made the responsibility of the Regulatory Commission. Provision for reorganization of the State Electricity Provision for reorganization of the State Electricity

Boards.Boards.

Sequence of EventsSequence of Events Development of the Power Market Development of the Power Market

Section 66, IE Act 2003Section 66, IE Act 2003 National Electricity Policy, 12-Feb-2005, Para 5.7.1(d)National Electricity Policy, 12-Feb-2005, Para 5.7.1(d)

Implementation of Inter-State ABT : 2002-03Implementation of Inter-State ABT : 2002-03 Metering, Scheduling and SettlementMetering, Scheduling and Settlement

Introduction of Open Access in Inter State Transmission : May 2004Introduction of Open Access in Inter State Transmission : May 2004 Development of PXDevelopment of PX

Staff paper by CERC : July 2006Staff paper by CERC : July 2006 Public hearing : December 2006Public hearing : December 2006 Guidelines for setting up PX : February 2007Guidelines for setting up PX : February 2007 Approval for setting up first PX : MCX, August 2007Approval for setting up first PX : MCX, August 2007 One PX (Indian Energy exchange) started functioningOne PX (Indian Energy exchange) started functioning Approval given for 2Approval given for 2ndnd power exchange by Hon’bleCERC power exchange by Hon’bleCERC

DefinitionDefinition

An Exchange is essential to a market-An Exchange is essential to a market-driven economy where prices are decided driven economy where prices are decided by the forces of demand and supply. by the forces of demand and supply.

These forces are contradictory: e.g., the These forces are contradictory: e.g., the seller wants high prices while the buyer seller wants high prices while the buyer wants low prices. These conflicting forces wants low prices. These conflicting forces determine the correct price of a commodity determine the correct price of a commodity at a given time in a market-driven at a given time in a market-driven economy.economy.

What is Power Exchange ?What is Power Exchange ?An electronic Power ExchangeAn electronic Power ExchangeProvides a level playing field for Faceless Provides a level playing field for Faceless

and anonymous players by discovery of and anonymous players by discovery of price. price.

Anonymous Buyers/Sellers from a large Anonymous Buyers/Sellers from a large geographical spread converge geographical spread converge

Market manipulation is thwarted Market manipulation is thwarted Enables true-market driven power Enables true-market driven power

economyeconomyDriven by the genuine market forces of Driven by the genuine market forces of

demand and supply, and not by any of demand and supply, and not by any of vested interest.vested interest.

Power ExchangePower Exchange A Power exchange facilitates equitable, A Power exchange facilitates equitable,

transparent and efficient trading of power. transparent and efficient trading of power.

Bridges the demand supply mismatch by Bridges the demand supply mismatch by

bringing larger players together for buying and bringing larger players together for buying and

selling in an auction based system. selling in an auction based system.

While maintaining complete anonymity, resolves While maintaining complete anonymity, resolves

the constraints in the earlier formats, Viz. search the constraints in the earlier formats, Viz. search

costs, transaction costs, and counter-party risks.costs, transaction costs, and counter-party risks.

Power ExchangePower Exchange

Presently CERC has allowed only Day ahead MarketPresently CERC has allowed only Day ahead Market

At present CERC has allowed only National level At present CERC has allowed only National level

operated Power exchanges. In due course if need arises operated Power exchanges. In due course if need arises

Regional level operated exchanges might come.Regional level operated exchanges might come.

In power exchanges, as per CERC norms the price In power exchanges, as per CERC norms the price

discovery is through Double sided closed auction.discovery is through Double sided closed auction.

Collective transaction means a set of transactions Collective transaction means a set of transactions

discovered in power exchange through anonymous, discovered in power exchange through anonymous,

simultaneous competitive bidding by buyers and sellerssimultaneous competitive bidding by buyers and sellers

For Power Exchange transactions the Nodal agency will For Power Exchange transactions the Nodal agency will

be National Load Despatch Centre (NLDC).be National Load Despatch Centre (NLDC).

Power Power ExchangeExchange Generally the ATC declaration is done by NLDC on its web Generally the ATC declaration is done by NLDC on its web

site every day.site every day.

Depending on the corridor availabilities the solution is Depending on the corridor availabilities the solution is

found out by the power exchanges and the allowed trades found out by the power exchanges and the allowed trades

will be intimated to NLDC.will be intimated to NLDC.

If there is no congestion NLDC will accept the trades and If there is no congestion NLDC will accept the trades and

issue the schedules to the power exchange and the same issue the schedules to the power exchange and the same

will be implemented in RLDC schedules. will be implemented in RLDC schedules.

In Power Exchange transactions both buyer and seller In Power Exchange transactions both buyer and seller

have to pay the Transmission and operating charges have to pay the Transmission and operating charges

separately.separately.

The transmission losses also have to be borne by the The transmission losses also have to be borne by the

buyer and seller separately.buyer and seller separately.

Some basicsSome basics

    Market Volume Profile   Market Volume Profile        Market Clearing Price   Market Clearing Price          Market Clearing Volume   Market Clearing Volume       Unconstrained Report Unconstrained Report

Power Exchanges in India as on Power Exchanges in India as on datedate

Indian Energy ExchangeIndian Energy ExchangePower Exchange India Limited (PXI)Power Exchange India Limited (PXI)

Indian Energy ExchangeIndian Energy Exchange

27th June 2008 27th June 2008 promoted by Financial Technologies -Multi promoted by Financial Technologies -Multi

Commodity Exchange of India Ltd (MCX), Commodity Exchange of India Ltd (MCX), co-promoters co-promoters

PTC India Ltd PTC India Ltd IDFC, IDFC, Adani Enterprises,Adani Enterprises, Reliance Energy, Reliance Energy, Lanco Infratech, Lanco Infratech, Rural Electrification Corporation (REC), Rural Electrification Corporation (REC), Tata Power Company. Tata Power Company.

Power Exchange India Limited (PXI),Power Exchange India Limited (PXI),

22nd October 2008. 22nd October 2008. promoted by NSE & National Commodities promoted by NSE & National Commodities

& Derivatives Exchange Ltd (NCDEX). & Derivatives Exchange Ltd (NCDEX). co-promoters co-promoters

Power Finance Corporation, Power Finance Corporation, Gujarat Urja Vikas Nigam, Gujarat Urja Vikas Nigam, JSW Energy, JSW Energy, GMR Energy, GMR Energy, Jindal Steel & Power Jindal Steel & Power

Various options for allocation b/w Various options for allocation b/w two Exchangestwo Exchanges

Priority, based on pre-defined rules: Priority, based on pre-defined rules: Lowest MCP Lowest MCP Highest MCV Highest MCV Highest MCP X MCV Highest MCP X MCV Maximisation of social welfare, consumer Maximisation of social welfare, consumer

surplus, etc. surplus, etc. Pro-Rata Pro-Rata Explicit auctioning Explicit auctioning Merging the bids obtained by each PX and then Merging the bids obtained by each PX and then

finding a fresh solution honouring the constraints finding a fresh solution honouring the constraints declared. declared.

Merging the bids received by multiple PX and then Merging the bids received by multiple PX and then finding a combined solution.finding a combined solution.

Features of PxFeatures of Px Nationwide, Online and Electronic platform Nationwide, Online and Electronic platform Voluntary participation. Voluntary participation. Neutral, Unbiased and Transparent Neutral, Unbiased and Transparent Offer Day-Ahead Market(DAM) Offer Day-Ahead Market(DAM) Exchange time-line consistent with time-line Exchange time-line consistent with time-line

of Load Despatch Centres of Load Despatch Centres Activities of the Exchange will be carried out Activities of the Exchange will be carried out

in accordance with the in accordance with the ““CERC (Open Access in inter-State CERC (Open Access in inter-State

Transmission) Regulations, 2008”, dated Transmission) Regulations, 2008”, dated 25.01.2008, 25.01.2008,

Procedure for scheduling of collective transaction Procedure for scheduling of collective transaction issued by the Central Transmission Utility issued by the Central Transmission Utility (PGCIL) (PGCIL)

Bye-Laws, Rules and Business Rules of the Bye-Laws, Rules and Business Rules of the Exchange. Exchange.

Benefits of PxBenefits of Px Transparency:Transparency: Px offers a transparent, national-level platform for trading electricity in India leading to Px offers a transparent, national-level platform for trading electricity in India leading to

a vibrant power market.  a vibrant power market.   Access a diversified portfolio:Access a diversified portfolio:

Px offers a broader choice to generators and distribution licensees at the national-Px offers a broader choice to generators and distribution licensees at the national-level so that they can trade in smaller quantities and smaller number of hours without level so that they can trade in smaller quantities and smaller number of hours without additional overheadsadditional overheads. .

Payment security:Payment security: Px stand in as the counter-party for all trades; so participants need not be concerned Px stand in as the counter-party for all trades; so participants need not be concerned

about the risk-profile of the other party.  about the risk-profile of the other party.         Minimal transaction overheads/charges:Minimal transaction overheads/charges:

All charges are displayed on the Px trading terminals; so there is no room for All charges are displayed on the Px trading terminals; so there is no room for negotiation. The cost of transactions through Px is much less than any other mode of negotiation. The cost of transactions through Px is much less than any other mode of transaction.transaction.

Efficient portfolio management:Efficient portfolio management: Px enables participants to precisely adjust their portfolio as a function of consumption Px enables participants to precisely adjust their portfolio as a function of consumption

or generation. Participants, especially distribution licensees, are enabled to precisely or generation. Participants, especially distribution licensees, are enabled to precisely manage their consumption and generation pattern.manage their consumption and generation pattern.       

Hedging UI risks:Hedging UI risks: Px provides a tool to hedge against adverse movements in electricity prices. Thus, Px provides a tool to hedge against adverse movements in electricity prices. Thus,

price risks are minimised.price risks are minimised. Market development:Market development:

Px has plans to launch a range of products to facilitate development of power markets Px has plans to launch a range of products to facilitate development of power markets in India in such a way that investment in capacity enhancement is encouragedin India in such a way that investment in capacity enhancement is encouraged.   .   

Price discoveryPrice discovery

Price discovery would be through double Price discovery would be through double side bidding and buyers and suppliers side bidding and buyers and suppliers shall pay/receive uniform price. shall pay/receive uniform price.

double side closed auction double side closed auction

Bid accumulation period (Bidding phase)Bid accumulation period (Bidding phase) 10.00 AM and will end at 12.00 Noon During the auction sessions on each Trading Day, bids 10.00 AM and will end at 12.00 Noon During the auction sessions on each Trading Day, bids entered by Members on the IEX Trading Platform are automatically stored in the Central Order entered by Members on the IEX Trading Platform are automatically stored in the Central Order Book without giving rise to Contracts. During this phase, bids entered can be revised or Book without giving rise to Contracts. During this phase, bids entered can be revised or cancelled. cancelled.

Auction periodAuction periodAt the end of the bidding session, the IEX Trading Platform will seek to match bids for each At the end of the bidding session, the IEX Trading Platform will seek to match bids for each hourly contract. After the price determination phase is concluded, the Members, whose bids hourly contract. After the price determination phase is concluded, the Members, whose bids have been partially or fully executed, will be provided all relevant trade information regarding have been partially or fully executed, will be provided all relevant trade information regarding each contract traded on the IEX Trading Platform.each contract traded on the IEX Trading Platform.

Price Determination Process (Provisional)Price Determination Process (Provisional)All purchase bids and sale offers will be aggregated in the unconstrained scenario. The All purchase bids and sale offers will be aggregated in the unconstrained scenario. The aggregate supply and demand curves will be drawn on Price-Quantity axes. The intersection aggregate supply and demand curves will be drawn on Price-Quantity axes. The intersection point of the two curves will give Market Clearing Price (MCP) and Market Clearing Volume point of the two curves will give Market Clearing Price (MCP) and Market Clearing Volume (MCV) corresponding to price and quantity of the intersection point. Results from the process will (MCV) corresponding to price and quantity of the intersection point. Results from the process will be preliminary results. Based on these results the Exchange will work out provisional obligation be preliminary results. Based on these results the Exchange will work out provisional obligation and provisional power flow. Funds available in the settlement account of the Members shall be and provisional power flow. Funds available in the settlement account of the Members shall be checked with the Clearing Banks and also requisition for capacity allocation shall be sent to the checked with the Clearing Banks and also requisition for capacity allocation shall be sent to the NLDC. In case sufficient funds are not available in the settlement account of the Member then NLDC. In case sufficient funds are not available in the settlement account of the Member then his bid (s) will be deleted from further evaluation procedure.his bid (s) will be deleted from further evaluation procedure.

Price Determination Process (Final)Price Determination Process (Final)Based on the transmission capacity reserved for the Exchange by the NLDC on day ahead basis Based on the transmission capacity reserved for the Exchange by the NLDC on day ahead basis by 2.00 PM, fresh iteration shall be run at 2.30 PM and final Market Clearing Price and Volume by 2.00 PM, fresh iteration shall be run at 2.30 PM and final Market Clearing Price and Volume as well as Area Clearing Price and Volume shall be determined. These Area Clearing Prices as well as Area Clearing Price and Volume shall be determined. These Area Clearing Prices shall be used for settlement of the contracts.shall be used for settlement of the contracts.

SettlementSettlementOn receipt of final results, obligations shall be sent to Banks for Pay In from buying Members at On receipt of final results, obligations shall be sent to Banks for Pay In from buying Members at 2.30 PM and will take confirmation of the same from the Bank. At 3.00 PM final results will be 2.30 PM and will take confirmation of the same from the Bank. At 3.00 PM final results will be sent to NLDC / SLDCs for incorporating in final schedules. Once a transaction is scheduled it sent to NLDC / SLDCs for incorporating in final schedules. Once a transaction is scheduled it shall be considered as deemed delivery.shall be considered as deemed delivery.

Procedure for Scheduling of Procedure for Scheduling of Collective TransactionCollective Transaction

•Submission/processing of of application - Time frame for various activities•Scheduling •Treatment of losses•Congestion management•Commercial conditions•Disbursal of payments

Day-Ahead Market hourly contract Day-Ahead Market hourly contract specifications:-specifications:-

Product definitionProduct definition

24 separate hour periods throughout the following 24 separate hour periods throughout the following delivery day (D). delivery day (D).

Trading system Trading system IEX /PEX (Leased Line)IEX /PEX (Leased Line)

When to place ordersWhen to place orders 10:00 AM to 12:00 PM of previous day (D-1) 10:00 AM to 12:00 PM of previous day (D-1)

Fixing times Fixing times 15:00 hrs of D-1 (dispute settlement period: 30 min.) 15:00 hrs of D-1 (dispute settlement period: 30 min.)

Minimum volume Minimum volume 10 MW (Minimum allowable quantity for buy/sell in the 10 MW (Minimum allowable quantity for buy/sell in the

standing clearance, it should not be less than this standing clearance, it should not be less than this quantity)quantity)

Minimum volume stepMinimum volume step 0.1 MW 0.1 MW

Minimum quotation step Minimum quotation step Rs. 1 per MWhRs. 1 per MWh

Day-Ahead Market hourly Day-Ahead Market hourly contract specifications:-contract specifications:-

Quotation Quotation methodmethod    

Closed auction (Market Clearing Price and Market Clearing Volume calculation) Closed auction (Market Clearing Price and Market Clearing Volume calculation) by linear interpolation by linear interpolation

Order wordingOrder wording Trader's ID, instrument, quantity/price combinationTrader's ID, instrument, quantity/price combination

Delivery pointDelivery point Periphery of Regional Transmission System in which the grid-connected Periphery of Regional Transmission System in which the grid-connected exchange entity, is located. exchange entity, is located.

SettlementSettlement Daily settlement at ACP* Volume traded. Final settlement adjusted for any force Daily settlement at ACP* Volume traded. Final settlement adjusted for any force majeure deviations. majeure deviations.

Transmission Transmission chargescharges

Regional Transmission System:Regional Transmission System:As Per Central Electricity Regulatory Commission (Open Access in inter-State As Per Central Electricity Regulatory Commission (Open Access in inter-State Transmission) Regulations, 2008. Transmission) Regulations, 2008.

Transmission Transmission losseslosses

State Transmission System:State Transmission System:As per the concerned State Electricity Regulatory Commission’s As per the concerned State Electricity Regulatory Commission’s Regulations/ CERC (Open access) Regulations, 2008. Regulations/ CERC (Open access) Regulations, 2008.

Time tableTime table   TRADING DAYTRADING DAY

   TimeTime ActionAction

1)1) 10AM-12 10AM-12 PMPM

Participants submit Bid to IEX for purchase /sale of electricity on next day.Participants submit Bid to IEX for purchase /sale of electricity on next day.

2)2) 11:00 AM11:00 AM NLDC communicates to IEX the list of interfaces/control areas/regional NLDC communicates to IEX the list of interfaces/control areas/regional transmission system(s) on which unconstrained flows are required transmission system(s) on which unconstrained flows are required to be to be advised by PXadvised by PX

3)3) 1:00 PM1:00 PM IEX communicates to NLDC the interchange on various interfaces/control IEX communicates to NLDC the interchange on various interfaces/control areas/regional transmission systems as intimated by NLDC areas/regional transmission systems as intimated by NLDC NLDC check for NLDC check for congestion.congestion.

4)4) 2:00 PM2:00 PM In case of Congestion,NLDC communicates to IEX the period of congestion In case of Congestion,NLDC communicates to IEX the period of congestion & available limit for scheduling on respective interfaces/control & available limit for scheduling on respective interfaces/control areas/transmission system(s)areas/transmission system(s)

IEX Day-Ahead Market Timeline for Actual Delivery of Power on Next Day

Time tableTime table   TRADING DAYTRADING DAY

   TimeTime ActionAction

5)5) 3:00 PM3:00 PM IEX submits application for scheduling of Collective TransactionIEX submits application for scheduling of Collective Transaction Power Exchange(s) ensure the scheduling Request is within the limit as Power Exchange(s) ensure the scheduling Request is within the limit as per the Standing Clearance /No objection certificate by Utilities.Details of per the Standing Clearance /No objection certificate by Utilities.Details of scheduling Request by Power Exchange(s) to NLDC (format-PX-III) by scheduling Request by Power Exchange(s) to NLDC (format-PX-III) by Clubbing of all Buyers /Sellers within a state for scheduling by RLDC.Clubbing of all Buyers /Sellers within a state for scheduling by RLDC.

Details of scheduling RequestDetails of scheduling Request by Power Exchange(s) to NLDC by Power Exchange(s) to NLDC ((format-PX-IIIformat-PX-III) by Clubbing of all Buyers /Sellers within a state for ) by Clubbing of all Buyers /Sellers within a state for scheduling by RLDC.scheduling by RLDC.

6)6) 4:00 PM4:00 PM NLDC sends the details(scheduling request of Collective Transaction) to all NLDC sends the details(scheduling request of Collective Transaction) to all the concerned RLDCs the concerned RLDCs for final checking and incorporating in for final checking and incorporating in SchedulingScheduling

7)7) 5:30 PM5:30 PM NLDC /RLDCs shall confirm the accepted schedule to IEXNLDC /RLDCs shall confirm the accepted schedule to IEX

8)8) 6:00 PM6:00 PM RLDC issues scheduleRLDC issues schedule

IEX Day-Ahead Market Timeline for Actual Delivery of Power on Next Day

Scheduling Scheduling

RLDCs schedules the Collective Transaction at the respectiveRLDCs schedules the Collective Transaction at the respective

periphery of the Regional Entities.periphery of the Regional Entities.

RLDCs incorporate all buyers within a State (clubbed together as oneRLDCs incorporate all buyers within a State (clubbed together as one

group) and all sellers within a State (clubbed together as another group), group) and all sellers within a State (clubbed together as another group),

inin

the schedules of the Collective Transactions.the schedules of the Collective Transactions.

The individual transactions for State Utilities/intra-State Entities will beThe individual transactions for State Utilities/intra-State Entities will be

scheduled by the respective SLDCs. Power Exchange(s) shall send thescheduled by the respective SLDCs. Power Exchange(s) shall send the

detailed breakup of each point of injection and each point of drawal withindetailed breakup of each point of injection and each point of drawal within

the State to respective SLDCs by 18:00 Hrs. after receipt of acceptancethe State to respective SLDCs by 18:00 Hrs. after receipt of acceptance

from NLDC. The details for Scheduling Request for Collectivefrom NLDC. The details for Scheduling Request for Collective

Transaction shall be submitted by Power Exchange (s) to the respectiveTransaction shall be submitted by Power Exchange (s) to the respective

SLDCs SLDCs

TREATMENT OF LOSSESTREATMENT OF LOSSES

Inter-State transmission losses would be applied Inter-State transmission losses would be applied separately on Buyers as well as Sellers of Collective separately on Buyers as well as Sellers of Collective Transaction, for arriving at the Schedules.Transaction, for arriving at the Schedules.

To compensate for losses in the inter-State To compensate for losses in the inter-State transmission system, the Sellers in the Collective transmission system, the Sellers in the Collective Transaction shall inject extra power (MW), in addition to the Transaction shall inject extra power (MW), in addition to the contracted power.contracted power.

To compensate for the losses in the inter-State To compensate for the losses in the inter-State transmission system, the transmission system, the Buyers in the Collective Buyers in the Collective transaction shall draw less power (MW) than contracted transaction shall draw less power (MW) than contracted power.power.

The average transmission losses of the respective Region The average transmission losses of the respective Region would be applied would be applied along with additional losses (if any), along with additional losses (if any),

Congestion managementCongestion management Market-splitting methodology adopted for congestion management.Market-splitting methodology adopted for congestion management.

Grid bottlenecks are relieved by comparison of the calculated Grid bottlenecks are relieved by comparison of the calculated contractual flow with the transmission capacity available for spot contractual flow with the transmission capacity available for spot trading, and if the flow exceeds the capacity, the prices are adjusted trading, and if the flow exceeds the capacity, the prices are adjusted on both sides of the bottleneck so that the flow equals the capacity. If on both sides of the bottleneck so that the flow equals the capacity. If the flow does not exceed the capacity, a common price is established the flow does not exceed the capacity, a common price is established for the whole area.for the whole area.

If the flow exceeds the capacity at the common price for the whole If the flow exceeds the capacity at the common price for the whole market area, it is split in a surplus part and a deficit part. The price is market area, it is split in a surplus part and a deficit part. The price is reduced in the surplus area (sale > purchase) and increased in the reduced in the surplus area (sale > purchase) and increased in the deficit area (purchase > sale). This will reduce the sale and increase deficit area (purchase > sale). This will reduce the sale and increase the purchase in the surplus area. In the same way, it will reduce the the purchase in the surplus area. In the same way, it will reduce the purchase and increase the sale in the deficit area. Thus, the needed purchase and increase the sale in the deficit area. Thus, the needed flow is reduced to match the available transfer capability. This flow is reduced to match the available transfer capability. This method of managing congestion is also known as market-splitting. method of managing congestion is also known as market-splitting. Initially, the electrical regions are defined as bid areas since inter-Initially, the electrical regions are defined as bid areas since inter-regional links are most likely to be congested, however, each regional links are most likely to be congested, however, each electrical region of the country has been divided in two bid-areas so electrical region of the country has been divided in two bid-areas so as to accommodate any exigencies of congestion in intra-regional as to accommodate any exigencies of congestion in intra-regional transmission system.transmission system.

Treatment of Congestion RevenueTreatment of Congestion Revenue

The area prices shall differ in each region The area prices shall differ in each region after splitting the market. The Members in after splitting the market. The Members in different bid areas shall pay different area different bid areas shall pay different area prices. The funds collected due to prices. The funds collected due to differential in area prices shall be kept in differential in area prices shall be kept in separate fund. These funds will be utilized separate fund. These funds will be utilized as directed by CERC.as directed by CERC.

HoursHours Delivery Date : 15/12/2008Delivery Date : 15/12/2008

Buy BidBuy Bid(MWh)(MWh)

Sell Bid Sell Bid (MWh)(MWh)

MCPMCP (INR/MWh)(INR/MWh)

MCV (MWh)MCV (MWh)

00:00-01:0000:00-01:00 00 150150 3750.003750.00 00

01:00-02:0001:00-02:00 00 150150 3750.003750.00 00

02:00-03:0002:00-03:00 00 150150 3750.003750.00 00

03:00-04:0003:00-04:00 00 150150 3750.003750.00 00

04:00-05:0004:00-05:00 5050 150150 4500.004500.00 00

05:00-06:0005:00-06:00 100100 150150 4500.004500.00 167167

06:00-07:0006:00-07:00 5050 00 6500.006500.00 00

07:00-08:0007:00-08:00 5050 00 6500.006500.00 00

08:00-09:0008:00-09:00 5050 00 6500.006500.00 00

09:00-10:0009:00-10:00 5050 00 6500.006500.00 00

10:00-11:0010:00-11:00 5050 00 6500.006500.00 00

11:00-12:0011:00-12:00 5050 00 6500.006500.00 00

11:00-12:0011:00-12:00 5050 00 6500.006500.00 00

12:00-13:0012:00-13:00 5050 00 6500.006500.00 00

13:00-14:0013:00-14:00 5050 00 6500.006500.00 00

14:00-15:0014:00-15:00 5050 00 6500.006500.00 00

15:00-16:0015:00-16:00 5050 00 5000.005000.00 00

16:00-17:0016:00-17:00 5050 00 5000.005000.00 00

17:00-18:0017:00-18:00 5050 00 7000.007000.00 00

18:00-19:0018:00-19:00 5050 00 7000.007000.00 00

19:00-20:0019:00-20:00 5050 00 7000.007000.00 00

20:00-21:0020:00-21:00 5050 150150 7050.007050.00 00

21:00-22:0021:00-22:00 5050 150150 7050.007050.00 00

22:00-23:0022:00-23:00 5050 00 5000.005000.00 00

23:00-00:0023:00-00:00 00 00 0.000.00 00

TotalTotal 10001000 12001200 ---- 167167

Typical Auction data for 15-12-08 in PXI

Regulation 2008 of CERC RegulationsRegulation 2008 of CERC Regulationson on CollectiveCollective Transactions Transactions

NLDC ChargesNLDC Charges Collective Transactions:Collective Transactions:a.a. Application fee – Rs. 5000/-Application fee – Rs. 5000/-b.b.Transmission charges Transmission charges

-Rs 30/MWh for each point of injection and -Rs 30/MWh for each point of injection and drawaldrawal

c. Scheduling Charges c. Scheduling Charges – – Rs. 5000/day to NLDC for each entity involved ;Rs. 5000/day to NLDC for each entity involved ; -NLDC to Share with RLDCs-NLDC to Share with RLDCsd. All buyers within a state :clubbed into one groupd. All buyers within a state :clubbed into one group

All sellers within a state :clubbed into one groupAll sellers within a state :clubbed into one groupe.e. Payment of Tr and op charges by PX to NLDC by next working dayPayment of Tr and op charges by PX to NLDC by next working dayf.f. Tr and op charges for SLDCs shall be directly settled by PX with respective Tr and op charges for SLDCs shall be directly settled by PX with respective

SLDC SLDC

Congestion Management Congestion Management Collective: - NLDC in coordination with Collective: - NLDC in coordination with

PxPx

(From (From 01.04.2008)01.04.2008)

REAL TIME CONGESTION MANAGEMENTREAL TIME CONGESTION MANAGEMENT

In case of transmission constraint or threat to In case of transmission constraint or threat to grid security, the scheduled transactions may be grid security, the scheduled transactions may be curtailed in the manner as decided by the curtailed in the manner as decided by the NLDC /RLDCs / SLDCs to relieve the NLDC /RLDCs / SLDCs to relieve the transmission constraint/ to improve grid security.transmission constraint/ to improve grid security.

Collective Transaction through Power Collective Transaction through Power Exchange(s) would normally be curtailed Exchange(s) would normally be curtailed subsequent to the Short-Term Bilateral subsequent to the Short-Term Bilateral Transaction(s).Transaction(s).

……contdcontd RLDCs would curtail a Transaction at the periphery of the RegionalRLDCs would curtail a Transaction at the periphery of the Regional

Entities. SLDC(s) shall further incorporate the inter-se curtailment ofEntities. SLDC(s) shall further incorporate the inter-se curtailment ofintra-State Entities to implement the curtailment.intra-State Entities to implement the curtailment.

In case of curtailment of a Transaction caused by transmission In case of curtailment of a Transaction caused by transmission constraintsconstraints/ threat to grid security, the Transmission Charges in respect of such/ threat to grid security, the Transmission Charges in respect of such

Transaction shall be payable on pro-rata basis in accordance with Transaction shall be payable on pro-rata basis in accordance with the finally Implemented Schedules. Operating Charges shall not be the finally Implemented Schedules. Operating Charges shall not be revised in case of curtailment.revised in case of curtailment.Power Exchange (s) shall be responsible for the settlement on Power Exchange (s) shall be responsible for the settlement on account of curtailment, directly with its participants.account of curtailment, directly with its participants.

NLDC/RLDCs/SLDCs shall NLDC/RLDCs/SLDCs shall interact only with the respective Power interact only with the respective Power Exchange(s), for the same Exchange(s), for the same

MCP FOR 300109MCP FOR 300109

MCV FOR 300109MCV FOR 300109

Intra/Inter-Regional exchanges through IEX. Intra/Inter-Regional exchanges through IEX.

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ER-SR WR-SR SR-ER SR-WR

Inter regional exchange --->

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Jun '08 July '08 Aug '08 Sep '08

Intra/Inter-Regional exchanges through IEX. Intra/Inter-Regional exchanges through IEX. - SR- SR

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AP KAR KER TN

Exchange by States ---->

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Jun '08 July '08 Aug '08 Sep '08

Toal Energy Exchange – SRToal Energy Exchange – SR

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Jun '08 July '08 Aug '08 Sep '08

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ALL INDIA LEVELALL INDIA LEVEL

Energy Traded through PX:Energy Traded through PX:June 08June 08 :0.4 MU:0.4 MUJuly 08July 08 :75 MU:75 MUAugust 08August 08 :290 MU:290 MUSept 08Sept 08 :278 MU:278 MU

Future Future Proposal to offer products for different Proposal to offer products for different

time horizons institution. time horizons institution. Proposal to add variety in terms of Proposal to add variety in terms of

products offered and products offered and method of bid-matching process method of bid-matching process

Evolve corresponding Evolve corresponding rules,rules, bye-laws for clearing, bye-laws for clearing, settlement, settlement, margins,margins, deposits, deposits, market surveillance etc.market surveillance etc.