Indian Energy Exchange’s share price surged roughly by 7% to an intra-day high of Rs 160.29 per equity share, but soon lost all ground and has slumped 7% in the afternoon session. Absence of clarity from the Central Electricity Regulatory Commission (CERC) regarding the retraction of the coupling order is impacting the share price. The hearing has been rescheduled to January 19 now.
IEX: Concerns with regard to market coupling
However, a day ahead of the hearing, CERC clarified that the July 2025 order shall be read as directions. “The expression ‘Order’ in the heading below the above-stated subject matter and in the footer, in the publication dated 23.7.2025 in Petition No. 8/SM/2025, shall be read as ‘Directions’,” read the corrigendum to the order.
IEX has been seeking a withdrawal of the CERC’s July 2025 order on day-ahead market (DAM) coupling.
“The Commission, vide Order dated 6.2.2024 in Petition No. 1/SM/2024 (Suo-Motu), had decided to implement a Shadow Pilot on Power System and Cost Optimisation through Market Coupling. The Commission, inter alia, directed the Grid Controller of India (GridIndia) to implement the following on a shadow pilot basis: (a) coupling of the RTM of the three power exchanges; (b) separately coupling of the RTM at the three power exchanges along with SCED; and (c) coupling of DAM of the three power exchanges,” read CERC order.
The IEX petition claims that the CERC order is arbitrary and violates the principles of natural justice. It claims that the coupling order will only lead to the loss of market share without any conceivable benefits.
What is market coupling?
Market coupling is a regulatory reform in the Indian power sector, which is designed to create a single, uniform price for electricity across all trading platforms. As of now, India has three power exchanges, namely the Indian Energy Exchange (IEX), Power Exchange India (PXIL), and Hindustan Power Exchange (HPX). Each exchange operates independently, meaning the price of electricity can differ slightly between them based on their specific buy and sell bids. Market coupling aims to end this fragmentation.
IEX: Competition worries
Market coupling is seen as a massive drawback for IEX because it directly challenges its business moat. Since prices will be the same across all exchanges, IEX loses its edge as the definitive price-setter. Competitors HPX and PXIL may lure users away by offering lower transaction fees or better services.
IEX share performance
The share price of IEX has risen over 11% in the last five trading sessions. The stock has surged 6.3% over the past one month. However, it has erased investors’ wealth by 28% over the last six months. IEX’s stock price has fallen 13% in the previous 12 months.
Apart from all this, the National Stock Exchange has sought clarification from the Indian Energy Exchange with respect to a recent news item captioned NSE, IGX in talks to launch India’s first natural gas futures contract. The response from the company is awaited.