CERC gives in-principle nod for power exchange

Mumbai: Power Exchange India Ltd (PXI), a joint venture of National Stock Exchange of India (NSE) and National Commodity & Derivatives Exchange (NCDEX), has obtained the in-principle approval of the Central Electricity Regulatory Commission (CERC) to set up and operate a power exchange.

The company hopes to start operations as soon as possible, a news release from NSE said.

PXI would function as a nationwide spot exchange for power and will initially trade only day-ahead contracts, said the statement.

Short term trades in power have shown tremendous growth over the past few years because of the constant need of the generating/distribution entities to balance their long term portfolios with volatility of short term demand.

PXI would follow a demutualised organisation structure.

Open market:

It will provide an open market place for all stakeholders in the power sector including generators, distribution companies, independent power producers, captive power producers, traders, etc. who can participate either by becoming members of PXI or be becoming constituents of the members.
The membership would be thrown open very soon.

The management of PXI will be led by Ms Rupa Devi Singh who has been recently appointed as its Chief Executive Officer.

Ms Singh brings along with her a very strong experience of over 25 years in the power and financial sectors by virtue of having worked earlier with SBI and CRISIL.