The new market structure, which has evolved over the last five years, provides distribution utilities with avenues to optimise their power purchase portfolios and reduce their overall power purchase costs. There has been a shift of the consumers from long to short term markets which has increased the necessity of forecasting and predicting the statistics and economics well before time. After analyzing the exchange price trend for over 5 years and considering other factors like demand-supply gap, weather, festivities, Industrial GDP etc we developed an algorithm in “Exchange Price Forecasting” tool that provides a virtual image of the exchange market to help our clients in taking informed decisions and making the right choices.