CERC Allows HPX To Introduce HP-DAM, HP-TAM & HP Contingency

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The Central Electricity Regulatory Commission (CERC), in its latest order, allowed a petition by the Hindustan Power Exchange (HPX) to introduce High Price (HP) Day-Ahead Market (DAM), HP-TAM (Term-Ahead Market) and HP Contingency. HPX is one of India’s three operational power exchanges besides IEX and PXIL.

Earlier, the CERC had approved the pleas of IEX and PXIL, seeking permission to introduce HP-DAM. The HPX, however, sought the central authority’s permission to introduce HP-TAM and HP Contingency contracts, too, in addition to HP-DAM. 

After hearing the petitioner’s plea and other stakeholders’ submissions, the central authority allowed the power exchange firm to introduce the three electricity market solutions. It, however, has asked the Grid Controller of India to review the performance of the HP-TAM and HP Contingency contracts after three months. 

“In light of the above analysis and decision on the various issues arising out of the proposal for the introduction of high-price contracts at the Petitioner’s power exchange, we hereby approve the proposal of the Petitioner to introduce HP-DAM segment in the Integrated DAM, and also HP-TAM and HP-Contingency contracts, subject to compliance of the directions stated above,” the order said. 

It also added, “The Petitioner is directed to incorporate appropriate provisions in its Bye-laws, Rules and Business Rules with respect to the introduction of these contracts in line with the above directions and submit to the Commission for records within 15 days from the date of this order. Needless to mention, if any discrepancy is noticed or if it appears that the revised Business Rules, Rules and Bye-Laws do not conform to the Regulations and/or to this order in any respect, necessary directions may be issued for such compliance.”

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The Ministry of Power, earlier on August 1, 2022, proposed introducing the HP-DAM within the existing integrated DAM (I-DAM) and issued a detailed note. The Commission has already approved IEX for introducing HP-DAM on February 16, 2023. PXIL received the approval from CERC on April 11, 2023. 

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“As regards the Petitioner’s proposal for the introduction of HP-TAM and HP-Contingency contracts, we feel that the introduction of these contracts may help in increasing competition, provide more avenues to eligible sellers who have not been able to participate in TAM and Contingency contracts due to the existing price ceiling of Rs.10/kWh, and create a level playing field across different market segments,” the CERC order said. 

HPX was granted registration by the Commission to establish and operate a Power Exchange in 2021. It started its operations on July 7, 2022, in Contingency (Day-Ahead and Intraday), Green Contingency (Day-Ahead and Intra-Day) contracts, in Renewable Energy Certificates (RECs) and IDAM and Real Time Market (RTM).