MCX may roll out electricity futures
Resolution of the jurisdiction issue between market regulator Sebi and electricity regulator CERC, will further deepen the power market and pave the way for the introduction of longer duration delivery-based contracts on exchanges, the Power Ministry said on Thursday.
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New Delhi: Resolution of the jurisdiction issue between market regulator Sebi and electricity regulator CERC, will further deepen the power market and pave the way for the introduction of longer duration delivery-based contracts on exchanges, the Power Ministry said on Thursday.
The statement came a day after the Supreme Court disposed of the long-pending matter between the Sebi and the CERC regarding regulatory jurisdiction of electricity derivatives.
This has opened the gate for introduction of longer duration delivery-based contracts on the power exchanges which has been currently restricted to only 11 days due to the pendency of the case, the ministry informed.
This will enable discoms and other large consumers to plan their short-term power procurement more efficiently.
Similarly, the commodity exchanges viz. MCX, etc., can now introduce financial products viz. electricity futures etc. which will enable discoms and other large consumers to effectively hedge their risks of power procurement, it stated.
