There are two power exchanges in India - Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL), where electricity is being traded. The electricity prices are discovered on Day Ahead Market (DAM) of these power exchanges in every 15 minutes time block. These prices fluctuate in every time block, leading to fluctuations in a day, depending upon the electricity demand and supply position in the market at any given point in time.
The share of electricity traded through power exchanges is only about 3% of the total electricity being consumed in the country. Hence, the impact of any short term fluctuations, during 2 to 3 time blocks of 15 minutes each out of total 96 time blocks in a day, in electricity prices, in the power exchange would have insignificant effect to the consumers.
However, through appropriate Regulations, Central Electricity Regulatory Commission (CERC) ensures fair, neutral, efficient and robust functioning of power exchanges in India.