IEX Shares Fall 10% After Power Market Rule Change
Shares of Indian Energy Exchange (IEX) dropped by 10% on Thursday, July 24, after reports said that the Central Electricity Regulatory Commission (CERC) has approved a major change in how electricity will be traded in the future.
This change involves something called “market coupling” in the Day-Ahead Market (DAM), and it’s expected to begin by January 2026.
What is Market Coupling?
In simple terms, market coupling means that all power exchanges in India will work together to find a single electricity price every day. Right now, different exchanges might have different prices, but with market coupling, all buy and sell orders will be combined, and there will be one uniform market price.
Each power exchange will take turns managing the system, using a round-robin method. This is expected to make trading more efficient and transparent.
How Will This Affect IEX?
Currently, IEX is a leading power trading platform, but with market coupling, its role will change. It will no longer set electricity prices on its own. Instead, it will just act as a platform for bids and offers.
While this change won’t immediately affect consumers, experts say it could lower power prices in the long run.
The government supports this move because it wants to increase power trading through exchanges rather than long-term power agreements, which usually last for 25 years.
Market Reaction
At 9:15 a.m., IEX shares were trading at Rs 169.1, which is 10% lower on the NSE.
Despite today’s drop, IEX shares have gained around 7% over the past year. In comparison, the Nifty 50 index has gone up by about 3.3% during the same time.
ALSO READ | Aditya Mangla appointed as CEO of Zomato Delivery