New Delhi, Aug. 24 -- Power prices on exchanges have softened in August, with the day-ahead market (DAM) and the real-time market (RTM) rates edging lower than a year ago as heavy monsoon rains lifted supply, while cooler weather kept the demand subdued.

Data from the Indian Energy Exchange showed that the market clearing price (MCP) of power in DAM, where most of the exchange trading takes place was 11% lower at Rs.4.17 per unit as of 22nd August, compared with Rs.4.68 in the year ago period. Similarly, the price in RTM was 6% lower at Rs.3.57 per unit.

According to experts, the fall in prices can largely attributed to an increase in sell bids or supplies on the exchange. There has been a 51% increase in sell bids on DAM at 10,378.37 G...