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Unseasonal Rains and Surplus Supply Crash Real-Time Power Prices on IEX

Power prices on the Indian Energy Exchange's (IEX) Real-Time Market (RTM) hit record lows in May 2025 due to a combination of unseasonal rains and increased electricity supply. Peak power demand fell to 215 GW on May 24, down from earlier levels of over 220 GW, as cooler temperatures reduced the use of air conditioners and other cooling devices. On May 22, RTM prices dipped as low as 2 paise/unit—the lowest on record—before recovering slightly.

The average RTM price dropped by 22% year-on-year to Rs3.69/unit for the May 1–21 period. This decline was driven by a 2% YoY fall in electricity consumption and increased generation from hydro, wind, and thermal sources. While the RTM comprises only a small portion of total electricity traded, prolonged low prices may influence power tariffs in the next fiscal year.

Experts note that if distribution companies (discoms) spend less than their projected power purchase budgets due to cheaper RTM prices, regulatory authorities might consider tariff reductions in future orders. This potential adjustment could benefit consumers through lower electricity bills.