Shares of Indian Energy Exchange (IEX) witnessed a sharp decline of 4% on January 9, as the market reacted to the postponement of a key hearing on market coupling regulations by the Electricity Appellate Tribunal (APTEL). Traders and investors saw a volatile session as the tribunal directed IEX to submit an affidavit on the amendments sought in the coupling norms by January 19.
At 12:35 pm, IEX shares were trading at Rs 144.19 apiece, reflecting a 4% drop for the day, signaling caution among participants in the stock market today.
Market Performance Snapshot
- IEX share price (Jan 9): Rs 144.19
- Intraday movement: Fell 4% amid volatile trade
- Trigger: Hearing on market coupling norms deferred to January 19
The postponement came after the Central Electricity Regulatory Commission (CERC) sought more time to respond regarding the withdrawal of its coupling order, indicating ongoing deliberations on how the energy market should be structured.
Key Update from APTEL
During the hearing, APTEL expressed concerns over the formulation of market coupling rules. Observations included:
- The tribunal questioned whether CERC acted independently while drafting the coupling framework.
- Remarks highlighted potential procedural issues, with the bench stating the need for transparency and fairness in the regulatory process.
- APTEL directed IEX to file an affidavit by January 19, which will clarify the exchange’s position and the proposed amendments.
These developments have drawn attention to how market coupling could reshape electricity trading in India.
Understanding CERC Coupling Norms
The Central Electricity Regulatory Commission (CERC) first introduced market coupling in July 2025, aiming to unify electricity prices across various exchanges. The mechanism intends to:
- Aggregate energy prices from all power trading platforms.
- Publish a single day-ahead market (DAM) price, replacing multiple price discovery points.
- Improve market efficiency and strengthen confidence in exchange operations.
Currently, power trading is conducted across three main platforms:
- IEX – dominating with around 85% market share, especially in DAM and real-time market (RTM).
- Power Exchange of India
- Hindustan Power Exchange of India
Under market coupling, a single clearing price applies to all exchanges, removing IEX’s pricing advantage and creating a level playing field. Bidders would no longer gain from trading exclusively on the dominant exchange, as all platforms will now follow a unified price mechanism.
Company Details: Indian Energy Exchange (IEX)
IEX has long held a leadership position in India’s electricity trading sector, particularly in day-ahead and real-time markets. The exchange facilitates transparent, competitive price discovery for electricity buyers and sellers, contributing to overall market stability.
- Market share: ~85% in key segments
- Trading model: DAM and RTM
- Competitors: Power Exchange of India, Hindustan Power Exchange
The introduction of market coupling marks a significant structural change for IEX, potentially reshaping trading patterns across the country.
Summary
The IEX share price drop of 4% on January 9 reflects market caution amid regulatory uncertainty. With APTEL deferring the hearing on market coupling norms to January 19, investors are closely monitoring how CERC’s regulations and tribunal directions will impact trading dynamics.
Market participants are particularly attentive because market coupling could alter the pricing landscape, leveling the field across all power exchanges and affecting IEX’s dominant position.
- IEX shares trading today: Rs 144.19
- Immediate focus: Filing of affidavit by January 19 and subsequent tribunal hearings
- Long-term impact: Unified pricing could influence market volumes and competitive positioning
As the stock market today navigates this uncertainty, IEX remains a key player to watch, especially given the potential shift toward a single unified price model in electricity trading.
Source: Moneycontrol
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