Distribution licensees will now have to procure short-term power (less than or equal to one year) through competitive bidding say the draft guidelines of the Power Finance Corporation (PFC). This is expected to reduce the overall cost of procurement of power. The short-term power market presently comprises 10 per cent of the total electricity procured in India. PFC has convened a meeting with the representatives of distribution licensees on February 10 to discuss the modalities. Currently, the per unit rate of short-term power procurement stands at Rs 3.80 to Rs 4.