The entire concept of power trading in India is at a nascent stage of development. Power trading essentially involves the dual modes of wholesale and retail markets. The domestic power market is undergoing a transformation with regard to the fact that consumers want prices to come down in the wholesale power market. In India, power generation plants owned by the union and state governments as well as the state electricity boards draw up contracts between themselves as a dominant feature of bulk power trading. However, a very small percentage of the overall power generated is actually subject to negotiations or brokered by power traders. This leads to lack of competitive pricing which proves detrimental for consumers at the end of the supply chain. Hide this