LUCKNOW: An audit report submitted on May 30 has drawn attention to Uttar Pradesh Power Corporation Limited’s (UPPCL) transactions on the Indian Energy Exchange (IEX), highlighting a difference between the average prices at which electricity was purchased and sold during 2025-26 and recommending improvements in power scheduling.According to the audit report, UPPCL purchased 1,619.56 million units (MUs) of electricity through the exchange at an average price of Rs 6.52 per unit, while it sold 6,060.29 MUs at an average price of Rs 3.77 per unit. The auditors also observed that on some occasions power was bought and sold on the same day.Based on these findings, the report stated that the average sale price was “abnormally lower” than the average purchase price and suggested that greater efforts be made in scheduling power procurement and sale to avoid avoidable increases in power costs.The audit, commissioned by UPPCL, did not quantify the financial impact of these transactions but flagged the issue as an area requiring closer attention.Responding to the observations, UPPCL Director (Corporate Planning) Deepak Raizada told TOI, that the figures reflected the way electricity markets function rather than any anomaly in power trading.He explained that electricity prices on power exchanges vary widely across the day depending on demand and supply conditions.According to Raizada, daytime prices often remain low because of abundant solar power generation, with rates typically ranging between Rs 2 and Rs 3 per unit. In contrast, prices during evening peak hours can rise to Rs 8-10 per unit as demand increases and solar generation declines. He said UPPCL generally sells surplus power during periods of lower demand and purchases power later when additional supply is needed to meet peak consumption.Raizada added that short-term purchases are usually more expensive because they are made during periods of higher demand. He said comparing annual average purchase and sale prices without considering the timing of transactions may not fully capture the operational realities of power system management.The audit observations have also prompted a response from the Uttar Pradesh Rajya Vidyut Upbhokta Parishad (UPRVUP). The consumer body has sought a review of power exchange transactions and raised concerns about the impact of price fluctuations on consumers. UPRVUP chairman Avadhesh Kumar Verma has written to union power minister Manohar Lal Khattar seeking reforms in electricity trading and greater scrutiny of power exchange operations.The consumer body has called for a review of instances where power was bought and sold on the same day, greater transparency in exchange transactions and measures to ensure that consumers are protected from avoidable costs arising from power procurement decisions.
