Kerala Regulator Asks KSEB to Study Power Futures
The Kerala State Electricity Regulatory Commission has directed KSEB to set up a team to explore an electricity futures market. The aim is to hedge, to some extent, the volatility and price risks of the short-term market, including through exchanges.
Context
Electricity futures are contracts that fix a price for power in advance, which can protect buyers from sudden price swings. India already has power exchanges that trade short-term electricity, so this is a step toward managing those risks.
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