Call us at : 09816280608
EXECUTIVE MBA
(POWER)
SEMESTER IV
YEAR: 2013 SESSION:
JULY
ASSIGNMENT – 2
FOR
Power Trading
(MDSP 841D)
(TO BE FILLED BY THE
STUDENT)
NAME: _______________________
SAP NO/REGN NO: _______________________
Section A (20 Marks)
Write short notes on any four of the following:
1. Contract for
Differences
Answer : A contract for
difference (CFD) is essentially a contract between an investor and an
investment bank or a spread-betting firm. At the end of the contract, the
parties exchange the difference between the opening and closing prices of a
specified financial instrument, including shares or commodities.
CFDs do not carry votes like
ordinary stock but enable investors to gain economic exposure to a listed
company for a fraction of the cost of buying shares. They also escape stamp
duty and can be bought in size without triggering obligations to disclose the
holding. A form of synthetic dividend is normally also payable.
2. Transmission Rights
Answer : While transmission
rights (TRs) are primarily designed to provide a financial hedge for traders
whose intertie trading represents a financial risk, participation in the TR
market is open to any company that chooses to join the IESO-administered
market.
Transmission rights are sold for
specific intertie paths through auctions. Prospective TR owners submit bids to
purchase the TRs, which are based on historic TR prices. Archived data is
available in the TR reports on the FTP site. Previous TR bids are not made
public, and neither are the various TR participants.
Transmission rights owners make
money when the intertie zone price is different from the Ontario marginal
clearing price (MCP).
3. Bidding strategies
Answer : Strategy is a word we
associate with long-term political aims, war and general ship the art of
imposing upon the enemy the place and time and conditions of fighting preferred
by oneself', or more simply, the art of winning wars; unlike tactics, which is
about winning battles; or logistics, the third of the military arts, which is
concerned with the provision and deployment of resources.; 'The calling is
strategy; the play is tactics.. Strategic decisions of this kind should be a
major concern of directors; deciding what things are to be done - concentrating
upon the desired ends, not means which should be the preoccupation of
4. Fundamentals of new legislation in the Electricity Act
Answer :
5. Deregulation plan
Answer : Deregulation has taken
place in many states and provinces throughout North America. It has allowed
competitive energy suppliers, such as Just Energy, to enter the markets and
offer their energy supply products to consumers. Energy prices are not
regulated in these areas and consumers are not forced to receive supply from
their utility. In deregulated markets, consumers can choose their supplier,
similar to other common household service providers. The marketing of these
services is still regulated.
Why is deregulation important?
Deregulation gives consumers
choice - the power of the buyer. A deregulated market allows you to choose your
commodity supplier. It also motivates retailers to differentiate their products
from the utility and those of competitors by
Section B (30 marks)
(Attempt any three)
1. Elaborate the key
issues and challenges in electricity market.
Answer : Beyond the poverty of
politics in India, three problems loom large: the narrow fault that caused the
blackouts; the wider crisis in India’s power sector; and the shoddy state of
the country’s infrastructure, from roads to power stations, which is a brake on
economic development.
On the first, the technical
glitch, the best explanation is that some states used more than their quota of
power from the national transmission network that links up India’s five
regional grids. The extra demand may have reflected a disappointing monsoon
that forced farmers to pump more water for their fields. In any case, it
overburdened the system, causing a cascade of failures. To cut the burden,
power plants were shut down, some automatically.
2. Discuss the
regulatory framework of Indian power sector.
Answer : The development of grid
interactive renewable power took off with the coming into force of the
Electricity Act 2003 (EA 2003), which, among other things, provides for
regulatory interventions for promotion of renewable energy (RE) sources through
a) determination of tariff; b) specifying renewable purchase obligation (RPO);
c) facilitating grid connectivity; and d) promotion of development of market.
The National Tariff Policy (NTP)
2006 requires the State Electricity Regulatory Commissions (SERCs) to fix a
minimum percentage of Renewable Purchase
3. What are the recent
policies and challenges of Electricity Act?
Answer : The Electricity Act, 2003
The Electricity Bill, 2001
was introduced in Lok Sabha on 30th August, 2001 and
was subsequently referred
to the Standing
Committee on Energy
for examination and report. The Standing Committee submitted its report
on 19th December, 2002. Based on
the recommendations of the Standing Committee on Energy, the Government of
India moved certain amendments. The Electricity Bill, 2001 along with these amendments, was passed
by Lok Sabha on 9th April, 2003.
The Bill
as passed by
Lok Sabha was
considered and passed
by Rajya Sabha on 5th May, 2003.
The Electricity Bill,
2003 as passed
by both Houses
of the Parliament received President’s
assent on 26th May,
2003 and was
4. What are the
differences between previous legislation and new legislation in the electricity
Act.?
Answer :
Call us at : 09816280608
No comments:
Post a Comment