Shares of Indian Energy Exchange (IEX) fell sharply on Tuesday, plunging 9.74% to Rs 189.56 on the NSE following news that the Power Ministry will begin stakeholder consultations on market coupling — a structural change that could reshape power trading in India.
The stock witnessed a steep intraday fall from above Rs 210 to below Rs 197 after CNBC-TV18 reported that the Power Minister would apprise stakeholders about the benefits of market coupling. Government sources confirmed that the process would be carried out via a broad bid rather than an internal mechanism, a move seen as potentially dilutive to IEX’s standalone market power.
The development revives market concerns from earlier this year, when the Power Secretary indicated that both the Ministry and the Central Electricity Regulatory Commission (CERC) were reviewing a Grid Controller report on market coupling.
Market coupling refers to integrating multiple electricity exchanges to determine a single uniform market clearing price. Analysts believe such a shift may weaken IEX’s pricing independence and could trigger structural changes in its current business model.
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