**Executive Summary**
This document is a response to Unstarred Question No. 133, answered on January 29, 2026, in the Lok Sabha, concerning the procurement of electricity via energy exchanges in India. It provides details on the mechanism of power trading, average power purchase prices through major exchanges over the last five years, and considerations for special incentives or tariffs for emerging industries. Details and data for the last 5 years up to Dec 2025 are contained in the annexures.
**Key Points / Main Content**
* **Power Exchange Mechanism:**
* Power Exchanges are electronic platforms for electricity sale and purchase.
* They operate in a transparent, competitive, and regulated manner.
* The Central Electricity Regulatory Commission (CERC) regulates Power Exchanges.
* CERC Power Market Regulations, 2021, govern price discovery.
* FY 2024-25 electricity procured through these exchanges was 143.75 Billion Units.
* Trading involves different contracts and price discovery processes.
* **Average Power Purchase Prices:**
* Weighted average power purchase prices through Indian Energy Exchange Ltd. (IEX), Power Exchange India Limited (PXIL) and Hindustan Power Exchange Ltd. (HPX) for the last five years are included.
* Separate price breakdowns for peak and non-peak hours.
* **Tariffs and Incentives:**
* State Electricity Regulatory Commissions (SERCs) determine tariffs for consumers.
* Tariffs consider consumer interests and the cost of electricity.
* State Governments can grant subsidies to reduce electricity costs for consumers as per Section 65 of the Electricity Act, 2003.
**Impact Analysis**
**Key Stakeholders:**
**Power Exchanges (IEX, PXIL, HPX)**
* **Impact:** Requires them to operate under CERC regulations and facilitate power trading via electronic platforms.
* **Action Required:** Adherence to CERC guidelines for price discovery and transparent trading practices.
**Electricity Consumers (including emerging industries like homestays, hospitality units, and MSMEs)**
* **Impact:** Affected by the tariffs set by SERCs and potential subsidies provided by State Governments.
* **Action Required:** Monitor tariff changes and available subsidy programs to manage energy costs.
**State Electricity Regulatory Commissions (SERCs)**
* **Impact:** Responsible for setting tariffs that balance consumer interests and the cost of electricity.
* **Action Required:** Consider relevant factors when determining tariffs, including the impact on different consumer categories.
**State Governments**
* **Impact:** Empowered to grant subsidies to reduce electricity costs for consumers.
* **Action Required:** Evaluate and implement subsidy programs based on the needs of different consumer groups.
Key Entities Referenced
Electricity Act, 2003: Governs the determination of tariffs and subsidies for electricity consumers.
Central Electricity Regulatory Commission (CERC): Regulates power exchanges and governs price discovery in India's electricity market.
State Electricity Regulatory Commissions (SERCs): Determines tariffs for various categories of electricity consumers within their respective states.
CERC Power Market Regulations, 2021: Sets the principles governing price discovery for various types of contracts in power exchanges.
Power Exchanges: Electronic platforms for transparent sale and purchase of electricity, including IEX, PXIL and HPX.
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.133
ANSWERED ON 29.01.2026
PROCUREMENT OF ELECTRICITY VIA ENERGY EXCHANGES
133. SHRI DUSHYANT SINGH:
Will the Minister of POWER
be pleased to state:
(a) the details of the mechanism through which power is traded via exchanges in the
country along with the process followed for price discovery and the total volume of
electricity procured through power exchanges;
(b) the details of the average price at which power has been purchased through
major power exchanges such as Indian Energy Exchange Ltd. (IEX), Power Exchange
India Limited (PXIL) and Hindustan Power Exchange Ltd. (HPX) during the last five years,
along with a breakdown for both day-time and night-time rates; and
(c) whether the Government has envisaged any special incentives, concessional
tariffs or schemes to support emerging industries such as homestays, hospitality units
and MSMEs with the objective of reducing their energy costs and if so, the details
thereof?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a) : Power Exchanges are electronic platforms that facilitate sale and purchase of
electricity in transparent, competitive, and regulated manner. Power Exchanges are
regulated by the Central Electricity Regulatory Commission (CERC), and the principles
governing price discovery for various types of contracts are laid down in the CERC
Power Market Regulations, 2021 as amended from time to time. During FY 2024-25, the
total electricity procured through these exchanges was 143.75 Billion Units. The trading
on exchanges is done by using different types of contracts using various mechanisms
and price discovery processes. Details of the mechanism through which power is traded
in exchanges in India, along with the process followed for price discovery, are given at
Annexure-I.
(b) : Details of the weighted average power purchase prices through Power
Exchanges, along with the corresponding total volumes for the last five years, including
a separate break-up of prices for peak and non-peak hours, are provided at Annexure-II.
(c) : As per the provisions of the Electricity Act, 2003, the determination of tariffs for
various categories of consumers vests with the respective State Electricity Regulatory
Commissions (SERCs). Tariffs are determined after due consideration of relevant
factors, including the protection of consumer interests and the reasonable recovery of
the cost of electricity. Further, in accordance with Section 65 of the Electricity Act,
2003, State Governments are empowered to grant subsidies to any class of consumers,
to reduce cost of electricity for such consumers.
************ANNEXURE-I
ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO.
133 ANSWERED IN THE LOK SABHA ON 29.01.2026
*************
The price discovery process for different types of Contracts are as follows:
Contract Type Matching Mechanism for Price
Discovery
Integrated-Day Ahead Market Double-Sided Closed Auction with
Real-Time Market Uniform Price
Intra-Day Continuous Matching
Day Ahead Contingency
Term Ahead Market* - Daily Uniform Price Step Auction
Term Ahead Market* – Weekly
Term Ahead Market* – Monthly
Term Ahead Market* – Any Day Single Sided Reverse Auction
Contracts (ADSS)
*Including Green & High Price Term Ahead Market
*****************ANNEXURE-II
ANNEXURE REFERRED IN REPLY TO PART (b) OF UNSTARRED QUESTION NO.
133 ANSWERED IN THE LOK SABHA ON 29.01.2026
*************
i. Details of Price (in Rs. per kWh) in different market segments with total volume for
all 3 Power Exchanges (During the Day (24 Hrs.))
Year Day Green High Real Term Green High Total
Ahead Day Price Time Ahead Term Price Volume
Market Ahead Day Market Market Ahead Term (in
Market Ahead Market Ahead Billion
Market Market Units)
2021-22 4.39 5.29 - 4.19 4.48 4.65 -
101.45
2022-23 5.96 6.50 - 5.66 6.91 6.28 -
102.95
2023-24 5.25 5.81 14.41 5.05 7.04 5.56 14.70
121.49
2024-25 4.48 4.09 8.81 4.25 7.15 4.78 15.97
143.75
2025-26 3.89 3.57 13.15 3.58 6.01 5.03 15.44 124.10
(up to
Dec-
2025)
ii. Details of Price (in Rs. per kWh) in different market segments for all 3 Power
Exchanges (During the Peak Hours)
Year Day Green High Real Term Green High Price
Ahead Day Price Day Time Ahead Term Term
Market Ahead Ahead Market Market Ahead Ahead
Market Market Market Market
2021- 5.76 6.55 - 5.40 4.55 4.89 -
22*
2022- 7.74 8.29 - 7.06 7.52 6.33 -
23*
2023- 6.81 7.36 14.34 6.39 7.67 5.72 15.09
24*
2024- 6.74 6.93 8.57 6.06 7.88 5.75 16.17
25#
2025- 6.77 7.17 14.40 5.66 7.13 5.86 15.46
26# (up
to
Dec-
2025)
*Peak hours: 17:00 to 23:00 hrs
#Peak hours: 18:00 to 23:00 hrsiii. Details of Price (in Rs. per kWh) in different market segments for all 3 Power
Exchanges (During the Non-Peak Hours)
Year Day Green High Real Term Green High Price
Ahead Day Price Day Time Ahead Term Term
Market Ahead Ahead Market Market Ahead Ahead
Market Market Market Market
2021-22* 3.93 4.87 - 3.78 4.17 4.52 -
2022-23* 5.36 5.90 - 5.19 6.55 5.98 -
2023-24* 4.73 5.29 14.69 4.60 6.90 5.58 14.35
2024-25# 3.88 3.70 8.69 3.83 6.69 4.60 15.77
2025-26# 3.11 3.03 13.81 3.04 5.40 6.16 16.36
(up to
Dec-2025)
*Non-peak hours: 00:00 to 17:00 hrs and 23:00 to 24:00 hrs
#Non-peak hours: 00:00 to 18:00 hrs and 23:00 to 24:00 hrs
*************