IEX stock stumbles as market coupling gets CERC approval

The Central Electricity Regulatory Commission (CERC) late on Wednesday said it has decided to implement market coupling in a phased manner for electricity trading from January.

- Arunima Bharadwaj

The Central Electricity Regulatory Commission (CERC) late on Wednesday said it has decided to implement market coupling in a phased manner for electricity trading from January. To begin with, the CERC will implement the coupling of the day ahead market (DAM).

The move is aimed at improving price discovery and system efficiency.

Following the development, shares of the Indian Energy Exchange (IEX) on Thursday crashed 29.5% as investors apprehended that the IEX could lose market share. Of the country's three power exchanges—IEX, Power Exchange India (PXIL), and Hindustan Power Exchange, IEX has the largest market share.

Market coupling is an economic model used in energy markets to create a single, uniform price for electricity across different trading platforms or exchanges.