Shares of Indian Energy Exchange remained in focus on Monday as fresh observations emerged from the Electricity Appellate Tribunal (APTEL) hearing on the market coupling issue.
During the proceedings, Electricity Appellate Tribunal observed that the Central Electricity Regulatory Commission’s (CERC) counsel clarified market coupling will not be implemented without a proper regulatory framework in place. The tribunal noted that any such structural reform must be backed by notified regulations and cannot be executed merely through directions.
In another key observation, APTEL remarked that the “regulator’s house must be in order and must be above suspicion,” underlining the need for transparency and procedural fairness in the regulatory process.
The hearing relates to IEX’s petition challenging Central Electricity Regulatory Commission’s July 2025 directive proposing market coupling in the day-ahead market (DAM). IEX has argued that the directive was issued without due process and that market coupling, if implemented without regulations, could disrupt existing market structures.
Earlier, the tribunal had indicated that market coupling cannot be enforced until a formal regulatory framework is notified, even as it allowed CERC to continue the process of framing regulations. Monday’s observations reiterate that position and provide interim relief clarity to the exchange.
The case continues to be closely tracked by market participants, as any regulatory change to the power trading mechanism could have a direct impact on volumes, price discovery, and the competitive landscape of electricity exchanges in India.
