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Hindustan Power Exchange gets CERC’s nod for High Price Contracts; Move aimed at further deepening p

Hindustan Power Exchange Limited (HPX), India’s new age power exchange promoted by PTC India Ltd, Bombay Stock Exchange, and ICICI Bank, has got approval from the Central Electricity Regulatory Commission (CERC) for the introduction of high price contracts in three key markets: High Price Day Ahead Market (HP-DAM), High Price Term Ahead Market (HP-TAM), and High Price Contingency Contracts.

As a part of this development, HPX will now offer these contracts in the High Price Day Ahead Market and High Price Term Ahead Market segments. The move comes as a part of the Commission’s efforts to further enhance market dynamics, deepen the market, and provide more opportunities for members to manage their risk and optimize their energy portfolios. The High Price Contingency Contracts will provide added stability to the energy market during periods of volatility.

The HP-DAM pricing has been established with a floor price of zero to mitigate any adverse impact on the integration of renewable energy in the national grid. Simultaneously, the forbearance price has been set at ?20/kWh as per the Commission’s order dated 31.03.2023 in Petition 4/SM/2023 (Suo-Motu).

With the fresh alternative of HP-TAM these high price generators can plan for sale of their power to interested beneficiaries under longer term contracts of upto 90 days. This would give them an opportunity to secure fuel supply in advance and plan their operations basis the underlying contracts, moving away from the sole dependency on clearance in the DAM segment.

Commenting on the development, Mr. Naveen Singh, Vice President & Head, Business Development, Hindustan Power Exchange, said, ” With the CERC nod to introduce High Price contracts on HPX, we have been successful in delivering two new products for the Power Market within a short time-span of just one year of starting our business operations in July last year. Till date these high-price generators had just one option to sell power, that is through participation in the HP-DAM segment. With these new segments the generators can plan their power sale to interested buyers for up to 90 days, giving HP-generators sufficient clarity to plan their fuel procurement, logistics etc. This also ensures a level playing field across different market segments, gives more choice to the consumers and promotes competition.”

About Hindustan Power Exchange

Hindustan Power Exchange (HPX), formerly known as Pranurja Solutions Ltd, is a recently launched electricity exchange in India. It has commenced operations from 6th July 2022. Currently, the exchange is offering electricity trade in Term Ahead Contracts (Daily, Weekly, Monthly and up to 90 days), Contingency Contracts, Green Contingency Contracts, Renewable Energy Certificates, ESCerts and Real Time Market; and gradually electricity trading in other market segments will be rolled out.  Backed by technology from Europe and world’s fastest exchange (BSE), HPX promises better price discovery and an unmatched user experience to its market participants. The exchange has executed trades of over 6.5BUs within 12 months of its operations.

HPX promoters – BSE, PTC and ICICI are the leading institutions in their respective field and such combination represents unique blend of expertise and skillset. Apart from the three promoters, several esteemed power sector entities including Government utilities, Independent Power Producers (IPPs), Power Traders, Distribution Utilities, sector consultants and others have reposed faith in the company through their investments in HPX. Having a strong portfolio, a team of dynamic power sector professionals with a zest for innovation, HPX is going to give a thrust in spot trading market of electricity.


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