Power utilities: Tight supply yields limited earnings benefit

It has been a remarkable quarter for electricity producers. Prices in the short-term power market perked up and thermal power generation has noticeably risen as hydro and renewable power generation lagged. Total power generation was up 5.3%, compared with 1.4% in the year ago quarter. Utilization also noticeably improved. But plant shutdowns and higher costs mean the benefits are not openly visible in earnings. Generation at JSW Energy Ltd, which is most exposed to the short-term power market among large firms, was down 2.5%. Still, thanks to better merchant realizations, higher other income and savings in operation and maintenance costs, operating profit before exceptional items rose 4%.The financial numbers of NTPC Ltd and Tata Power Co. .....