New Delhi, 26 July (IANS). National Stock Exchange (NSE) Chief Business Development Officer Shriram Krishnan said on Thursday that the Electricity Futures Contract will help control the cost of electricity.
Talking to the news agency IANS, Shri Ram Krishnan said that with the help of electricity futures contract, you can buy further futures today, this will fix your cost. At the same time, if the cost is higher at the spot, then you will get a difference from the cash-set Monthly Electricity Futures Contract.
This can help in controlling the cost of electricity to business and others.
Talking to IANS, Krishnan said that as the ESG (Environmental, Social and Governance) is increasing in the world. The reason for this is affected by the cost of electricity.
Giving examples, he said that if solar energy starts to produce everywhere, then the cost of electricity can be reduced, but if more electricity demand comes from our plan, prices can increase. In such a situation, electricity futures contracts are quite important.
On the question of electricity trading from electricity futures, Krishnan said that it is not for betting, but for real hedging. The country can benefit from 60,000 units and more, which is consumed. If you can benefit from this in a large number of electricity in your business profit and loss account.
In the middle of this month, NSE had said that it has received approval to launch a monthly Electricity Futures Contracts from the Security and Exchange Board of India (SEBI).
The purpose of launching a monthly electricity futures contracts from the NSE is to provide a good hedging tool to the market partners against the fluctuations in the prices of electricity. Also, electrification is to encourage capital investment in value-chain such as generation, transmission, distribution and retail.
-IANS
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