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 Day Ahead Contingency
PXIL got the permission to trade in DAC Market from August 31,2009 (allowed by The Hon’ble Commission) and PXIL started off its operations from September 15, 2009. Under DAC, Members can trade for delivery of electricity for the 24 hours of the next day. Member can bid for each hourly trades or for block of hours as suitable. Some salient features of DAC Market are:

  • Day-Ahead Contingency auction for all the 24 hours, subdivided into hourly contracts.

    1. Allows Sell bids regionwise for the first hour of trade followed by Buy bids.
    2. Buyers would be allowed to see price and the region of the Seller but the seller identity will not be revealed. Buyer can bid for any
        region that is feasible for him.
    3. Auction mechanism is used with Differential pricing. Highest Buy bid is matched with Lowest Sell bid at the mid-point of the Buy
        and Sell price.
    4. Bids matched are included in the day-ahead schedules.

  • Under this mechanism too, buy trades are settled at or below the quoted price and Sell trades are settled at or above the quoted price, ensuring maximum benefits to both buyers and sellers of electricity.

    1. There is complete anonymity of the bids between members.
    2. There is a Bilateral contract between Buyers and Sellers.
    3. Financial settlement and clearing is done by the exchange.

  • Though the DAC Market appears similar to DAS Market there are subtle differences in the functioning of both. Some noticeable differences being:

    1. DAS market comes under Collective transactions as per CTU whereas DAC market comes under the Bilateral Transactions.
    2. DAS market uses Uniform Clearing Price whereas DAC market used Differential Pricing mechanism.
    3. DAS markets precedes the DAC market so that any trades which are not cleared in the DAS market can be traded in DAC.
    4. Scheduling procedure is handled by NLDC in case of DAS market whereas the same is taken care by Nodal RLDC (Buyers region
        RLDC) in case of DAC.
    5. Members in DAS market are not aware as to which party they are dealing with whereas in DAC, since it is a Bilateral transaction,
        members know who is their counterparty.
    6. Congestion in case of DAS is managed by Market Splitting whereas in case of DAC, the trade is curtailed or re-routed as per the
        instruction of Nodal RLDC or SLDC.

For Contract Specification - Refer Annexure IB of the Business Rules for the Physical Market Segment - Click here