The volume of electricity transacted through trading licensees under bilateral transactions and through power exchanges has considerably increased. While the volume of electricity transacted through inter-state trading licensees and power exchanges was 24.69 BU in 2008-09, it has increased to 59.66 BU in 2012-13. most of this electricity was traded through short term transactions and the share of short term transactions was about 60.30% in 2012-13). Most of the short term electricity trading is happening through the power exchanges. It may be noted that short term electricity trading rates has considerably fallen in last year and the trading at exchanges is taking place at less than Rs. 4/kWh.It can be observed from the above figure that the price of electricity transacted through trading licensees was relatively high when compared with the price of electricity transacted through power exchanges and UI during the period August 2012 to March 2013. The trends in price of electricity transacted by trading licensees during RTC, Peak and Off-peak periods are shown in below Figure. It can be observed from the figure that the price of electricity during peak period is high in all the months from April to November 2012 when compared with the price during RTC and off peak periods.