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The Central Electricity Authority (CEA) has endorsed the Central Electricity Regulatory Commission’s (CERC) draft order, which addresses issues related to price discovery, market liquidity, and contract structuring on power exchanges. The draft proposes the removal of intraday contracts due to their low liquidity, as well as the growing popularity of the real-time market as an alternative. CEA believes this move will help consolidate and streamline the fragmented market. The Term Ahead Market (TAM) allows for short-term power procurement for delivery periods ranging from T+2 to T+90 days. CEA’s review of this market revealed irregular trading patterns, such as limited transactions and last-minute bids, raising concerns over possible market manipulation. CEA proposes extending the bidding window to curb last-minute activity and suggests limiting trading days for monthly and weekly contracts to improve liquidity. Additionally, CEA has proposed capping the number of daily contract deliveries to six days per trading session, allowing greater standardization and competition in the market. The DAC market, which operates from 13:00 to 23:30, faces similar liquidity issues, exacerbated by a long trading window and the ability for participants to submit customised delivery bids. CEA recommends restructuring the DAC into three sessions: 13:00-15:00, 17:00-19:00, and 21:00-23:00, to improve liquidity and cater to late-day contingencies. The CEA also suggests eliminating the non-standard DAC Dynamic product and prioritising national-level bids to address transmission congestion. The draft order outlines timelines for ADSS contracts but only sets maximum time limits for key stages like the bid-receiving period and IPO auction. CEA recommends introducing minimum time limits for better transparency and competition, as well as restricting the reverse auction to regular business hours. These recommendations aim to streamline the power trading market, enhance liquidity, and promote competitive bidding, ultimately supporting the growth of a more efficient and transparent power sector. (Mercom)