What is an open electricity market?
The reason for opening the electricity market is to allow competition in as many parts of the electricity supply chain as possible. The opening of the market will create new opportunities for market participants and encourage competition in electricity production and trading, but at the same time network infrastructure and system functions will remain under monopoly control.
As the electricity market opens, the trading price of electricity will not be regulated but will be set by supply and demand in market competition. The electricity price will be kept transparent by the power exchange, which will provide a forum for buying and selling electricity beyond bilateral agreements.
The market will give producers a place to sell the energy they produce. A fully functioning market with transparent pricing will in turn give investors and producers a basis for their long-term investment decisions.
The market will allow consumers to buy electricity not only with bilateral contracts but also from the power exchange. As a rule, individual consumers do not go directly to the power exchange to trade but use the services of brokers. The main significance of the market opening for us is that it allows us to use market-based solutions for our system services such as regulation and purchase of reserves.
”Towards a India Energy Markets”
Electricity Act 2003 has distinguished “Power Trading” as a separate licensed activity with the objective of developing power market in India to maximize resource utilization by promoting healthy competition among power players. For this reason, Power Trading is referred to as “purchase of electricity for resale thereof”. CERC/SERCs have prescribed stringent non discriminatory open access regulations and have also granted Inter-State Trading Licensees to 45 companies (as on July 2009). CTU/STUs have also defined detailed open access procedures to promote power trading operations in the country. The demand supply gap among various utilities during day and month provides opportunities for power trading. With tightening of grid discipline by CERC regulation, the utilities are persuaded to plan their demand supply gap in advance. This provides power trading a huge potential for growth.
Balaji e_Trading provides solution for sale and purchase of power from CPPs, IPPs and State Utilities/ Discoms on Intra Day, Day Ahead, Week Ahead and Month Ahead basis. Balaji e_Trading facilitates open access through SLDC/RLDC and communicates with all concerned. Commercial settlement is done through established practices involving weekly provisional bills and monthly bills based on Regional Energy Account (REA) prepared by Regional Power Committees (RPC).
Balaji e_Trading ensures timely payment for every transaction including energy and transmission charges as per the contract terms. Our payment track record shows our commitment for transparency and timely settlement of accounts.
Balaji e_Trading has carved a niche for itself in the short duration of its operations in India dynamic power market. Balaji e_Trading takes active interest in establishing a sound business relationship with its clientele for sale of its surplus power and to provide assistance in case of particular power requirement need during any time of the day. Balaji e_Trading is adept at providing a wide range of services to its clients vide Sale/Purchase of power through Short/medium term trades, bilateral contracts, Banking/Swap method and through Power Exchanges
”Presenting the future of Energy Markets.”
