Latest news with #market coupling
Reuters
7 days ago
- Business
- Reuters
Indian Energy Exchange sinks 30% on fears of rising competition from new pricing rules
July 24 (Reuters) - Shares of Indian Energy Exchange (IEX) ( opens new tab fell nearly 30% on Thursday, as investors grew concerned that a planned overhaul of electricity pricing could increase competition and erode the bourse's market dominance. IEX, currently India's leading platform for spot electricity price discovery, faces pressure following the power regulator's announcement on Wednesday of a phased rollout of market coupling starting in January. Under the new system, other power exchanges will also act as market couplers, challenging IEX's central role. The stock ended lower for a seventh consecutive session and logged its worst intraday single-day performance since listing in 2017. Market coupling is an economic model used in energy markets to create a single, uniform price for electricity across different trading platforms or exchanges. IEX "is currently undertaking a detailed impact assessment of the implications of this regulatory change," it said in an exchange filing on Thursday. The order is "worse" than "what we have built in", and IEX is likely to feel the impact on its market share, says Bernstein. The brokerage, which maintains a "market perform" rating on the stock, cut its target price to 122 rupees from 160 rupees to "reflect (the) full impact of market coupling". On average, IEX shares are rated "buy" with a median target price of 215 rupees, per data compiled by LSEG. The company's shares closed down 29.6% at 132.32 rupees, swinging to a year-to-date loss of 27.2%.
Reuters
24-07-2025
- Business
- Reuters
Indian Energy Exchange falls on fears of rising competition from new pricing rules
July 24 (Reuters) - Shares of Indian Energy Exchange (IEX) ( opens new tab fell as much as 15% on Thursday, as investors grew concerned that a planned overhaul of electricity pricing could increase competition and erode the bourse's market dominance. IEX, currently India's leading platform for spot electricity price discovery, faces pressure as the power regulator prepares to introduce market coupling from January in a phased rollout. Under the new system, other power exchanges will also act as market couplers, challenging IEX's central role. The stock was on track for its seventh consecutive session of losses and logged its worst intraday single-day performance since listing in 2017. Market coupling is an economic model used in energy markets to create a single, uniform price for electricity across different trading platforms or exchanges. The order is "worse" than "what we have built in" and IEX is likely to feel the impact on its market share, says Bernstein. The brokerage, which maintains a "market perform" rating on the stock, has cut its target price to 122 rupees from 160 rupees to "reflect full impact of market coupling". On an average, IEX shares are rated "buy" with median target price of 215 rupees, per data compiled by LSEG. Shares of the company were trading down 15% at 159.7 rupees as of 1019 local time.
Reuters
23-07-2025
- Business
- Reuters
India to start market coupling for power exchanges from January
July 23 (Reuters) - India's power regulator on Wednesday said it had decided to begin implementing market coupling in a phased manner for electricity trading from January. Market coupling is an economic model used in energy markets to create a single, uniform price for electricity across different trading platforms or exchanges. The regulator's move is aimed at improving price discovery and system efficiency. The Central Electricity Regulatory Commission (CERC) said in an order that the day-ahead market segment of all power exchanges will be coupled using a common system. Under the new system, power exchanges will take turns acting as the market coupling operator. Grid-India will serve as a backup and audit operator. The CERC said it would consider coupling the real-time market and other segments like the term-ahead market at a later stage, after more pilot runs and consultations. All power exchanges have been directed to share data with Grid-India and the CERC to support the rollout, the regulator said. The CERC said it would issue further orders based on the progress of implementation. Currently, the Indian Energy Exchange ( opens new tab is the country's most prominent platform for electricity spot price discovery. However, with the introduction of market coupling, other power exchanges will also act as market couplers. Analysts say this could reduce the IEX's dominance in price discovery and affect its market share.
