Friday, December 26
Shares of Indian Energy Exchange (IEX) fell over 4% in Friday’s session, trading near Rs 134, after a report indicated a potential revision in transaction fees charged by power exchanges in India.
According to a report by The Economic Times, citing sources, the Central Electricity Regulatory Commission (CERC) is considering a lower, uniform transaction fee of around 1.5 paise per kilowatt hour (kWh) per side for most trading segments. Currently, power exchanges charge 2 paise per kWh on both the buying and selling sides, resulting in a total transaction fee of nearly 4 paise per kWh.
The report further noted that for longer-duration contracts, such as those under the Term-Ahead Market (TAM), transaction fees could be reduced further to around 1.25 paise per kWh. This has raised concerns among investors about a potential impact on exchange-level revenues, especially for market leaders like IEX that derive a significant portion of their income from transaction charges.
However, the report also clarified that discussions are still at a preliminary stage, and no final decision has been taken by the regulator yet.
Despite the lack of formal confirmation, the possibility of a fee cut has weighed on sentiment, leading to selling pressure in Indian Energy Exchange shares. The stock was among the top losers in early trade, reflecting market sensitivity to regulatory developments in the power trading space.
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