Trading volume at IEX declines y-o-y by 11% in September quarter

21 Oct 2022 , 04:14 PM

Due to supply-side restrictions, the Indian Energy Exchange’s (IEX) trading volume decreased by almost 11% to 23.1 billion units in the July—September quarter compared to the same period last year. According to a corporate release, IEX traded 26 billion units (BU) in the period from July to September 2021.

It stated: “During the quarter, the Exchange traded 23.1 BU more electricity than it did in Q1 FY’23 (23.4 BU). The volume included 19.7 BU for conventional power, 1.5 BU for green power, and 19.14 lakh Certificates, or 1.9 BU, for the market for renewable energy certificates (RECs).”

In comparison to Q2FY’22, the volumes during the quarter decreased by 11% YoY (year over year). However, it noted that the volumes somewhat decreased by 2% YoY during H1FY23 (April to September 2022). Due to supply-side restrictions, the volumes were impacted, with e-auction coal, imported coal, and gas all commanding high prices. In comparison to Q2 FY22, the average Day Ahead Market price climbed to Rs 5.40 per unit in Q2 FY23.

However, it said that during Q1 FY23, the average Day Ahead Market price was Rs 7.76 per unit. Going forward, with supply-side constraints easing and demand decreasing during the upcoming winter season, more liquidity on the exchange platform is likely to lead to price drops, giving discoms the chance to optimize their power procurement and commercial and industrial consumers the chance to buy power at a lower cost, it was stated.

The IEX offered new products during the quarter, including daily contracts with terms up to 90 days, weekly contracts with terms up to 12 weeks, and monthly contracts with terms up to 3 months.

On the gas market front, despite price increases, the Indian Gas Exchange (IGX) transacted 5.9 million MMBTU in terms of volume during the quarter, and the profit after tax was recorded at Rs2.42 crore, an increase of 111% on a quarter-over-quarter basis, it claimed.

In comparison to a year ago, the IEX stated on Thursday that its consolidated net profit fell by over 7% to Rs71.20 crore. In a BSE filing, the company reported that its combined net profit for the three months ended September 30, 2021, was Rs77.38 crore. From Rs122.30 crore in the same quarter last year, total income decreased to Rs113.77 crore in the quarter under review.

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