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.