Last Updated:
Shares of Indian Energy Exchange Ltd (IEX) hit the 10% lower circuit on Thursday, July 24; Key points for investors
IEX Shares Hit Lower Circuit
Shares of Indian Energy Exchange Ltd (IEX) hit the 10% lower circuit on Thursday, July 24, following reports that the Central Electricity Regulatory Commission (CERC) has approved the implementation of market coupling in the Day-Ahead Market (DAM).
As part of the first phase of these new regulations, DAM will be coupled by January 2026. Under this model, various power exchanges will rotate as Market Coupling Operators (MCOs) through a round-robin mechanism.
What Is Market Coupling?
Market coupling is a process that aggregates buy and sell bids from all power exchanges in the country to arrive at a single, uniform market clearing price (MCP). This means electricity traded across all exchanges will follow one uniform price point at any given time. While the change won’t have an immediate impact on end consumers, it could eventually lead to lower power tariffs.
Impact on Power Exchanges
Once implemented, power exchanges will primarily act as platforms to receive bids and dispatch power, reducing their role in price discovery. The move aims to enhance transparency and efficiency in the power market.
Policy Push to Reduce Long-Term Contracts
One of the government’s key objectives with market coupling is to boost the share of electricity traded through exchanges, as opposed to long-term power purchase agreements (PPAs), which often last up to 25 years. By improving liquidity and transparency in spot markets, the Centre hopes to modernise power trading in India.
IEX Share Price History
At 9:15 a.m., IEX shares were down 10% at ₹169.1 on the NSE. Over the past year, IEX shares have gained nearly 7%, outperforming the Nifty 50, which has risen around 3.3% in the same period.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
view comments
- First Published:
