IEX shares showed good recovery on 25 July. Later in the afternoon, this stock was showing a jump of about 12 per cent. This provides great relief to IEX investors. On July 24, there was a big decline in this stock. The reason for this is an order of July 23 of the Central Electricity Regulatory Authority (CERC). CERC has announced the use of market coupling method to fix energy prices. This method will affect IX’s business.
Rohit Bajaj, Joint Managing Director of IEX, told several things about the performance of the company on 25 July and the possible impact of market coupling. He also spoke about the possibility of CERC’s order challenging in court. He said that it is too early to tell about whether the company will challenge the CERC order in the court. Following the order of CERC, the company said that it was still studying the order.
He said that the coupling in real time markets will be later. The current process is only for the Day-Ahead Market (DAM). However, he admitted that CERC’s move would have an impact on IEX. He said that due to the possibility of increasing competition, the contribution incident of day-market Ahed in IX has started. However, he did not reveal how much of Market Coupling will affect IEX business.
Bajaj said that the CERC order will be applicable from January next year. Therefore, it is difficult to tell how much it will affect IEX’s business. He spoke about the possible ways of dealing with it in the event of increasing competition. He said that IEX would reduce the transaction charge to face the situation. This will help him to stay in competition.
CERC says that market coupling will help in price discovery. This will provide a similar market clearing price for real time market or day-side. With this, transmission infrastructure will be used more and more. It is seen as large reforms in energy exchanges. It is believed that this will have the same price of electricity on different trading platforms.
Bids and offers in market coupling are collected before all power exchanges. It is then agreed. This leads to a clearing price for de -ego or real time market. Currently, Spot Electricity Price is the first platform of India for Discovery. CERC has ordered four months after the pilot program. The pilot project was carried out between December 2024 to March 2025.