NEW DELHI: Since its launch in June 2008, the Indian Energy Exchange (IEX) has made all out efforts to woo NTPC, the country's largest power generator, to trade electricity on its platform. But the public sector giant has always stayed away, selling all its electricity through long-term agreements with various consumers, especially distribution companies such as Reliance-controlled BSES Rajdhani and BSES Yamuna.

On Friday, however, NTPC made an unusual move. A team of senior officials from NTPC landed up at the IEX office in Delhi, seeking to understand how its platform worked, how to obtain its membership and wanting to sell power. The move was surprising, but by Saturday it became clear why NTPC might want to sell power through IEX.

On Saturday, NTPC served notice on the two Reliance-run power distribution companies of the capital — BSES Rajdhani and BSES Yamuna — threatening to suspend electricity supply to them from February 11 due to payment defaults.

The unusual move of NTPC to explore the possibility of IEX membership is being seen as an indication that the company could be serious this time in carrying out its threat. And if it carries through with the threat of suspending power supply to the two Delhi distribution companies, then 18.5 lakh customers of BSES Rajdhani in south and west Delhi as well as 13.5 lakh customers of BSES Yamuna in central and east Delhi could be in for tough times.

Sources said NTPC has sought details from IEX about historic pricing, details of other sellers and buyers and legal necessities involved in enrolling in the exchange. By Wednesday, NTPC was yet to enrol in the exchange to sell power. "It looks that NTPC is serious about selling power in the open market," said sources aware of the NTPC move.

NTPC stations supply over 1200 mw to BSES Rajdhani and over 800 mw to BSES Yamuna.

Historically, NTPC has sold all the power it produces through long-term agreements, and has had issues with various distribution companies over payments. However, it has always tided over such issues through negotiation.

IEX now has over 2,600 participants across utilities from 27 states, 5 Union Territories, over 500 private generators and more than 2,300 buyers. India has two such power exchanges — the other being Power Exchange of India (PXIL) — but IEX dominates the exchange trade. Both are regulated entities under the Central Electricity Regulatory Commission.