Shares of Indian Energy Exchange remained in focus after the company told the Electricity Appellate Tribunal (APTEL) that the parameters relied upon by the regulator to issue the market coupling directive are incorrect and fundamentally flawed.
During the hearing, IEX argued that the Central Electricity Regulatory Commission (CERC) based its July 2025 market coupling direction on assumptions and benchmarks that do not accurately reflect the functioning of the day-ahead market (DAM). The exchange contended that the methodology adopted by the regulator does not establish any tangible consumer benefit and instead risks disrupting an already efficient market structure.
IEX maintained that the parameters cited by CERC fail to demonstrate how market coupling would improve price discovery, liquidity, or overall market efficiency. The company also submitted that the regulator had not conducted a detailed cost-benefit analysis or stakeholder consultation before issuing the directive.
Further, IEX reiterated that market coupling cannot be introduced through a directive alone and must be supported by a clearly defined regulatory framework. The exchange pointed out that without notified regulations, implementing such a structural change would be arbitrary and contrary to principles of natural justice.
The tribunal took note of the submissions and continued to examine whether the regulator followed due process while issuing the directive. Earlier, APTEL had observed that market coupling would not be implemented until formal regulations are in place, while also allowing CERC to continue its regulatory exercise.
The matter remains under consideration, with market participants closely watching the outcome, as any decision on market coupling could have a significant impact on power trading volumes, exchange competition, and price discovery mechanisms in India’s electricity market.
