Latest news with #power regulator
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%.
Bloomberg
7 days ago
- Business
- Bloomberg
Indian Energy Shares Tumble After Regulator's Power Price Reform
Shares in Indian Energy Exchange Ltd., the country's largest power trading bourse, tumbled the most on record following the federal power regulator's decision to synchronize pricing across exchanges. The stock plunged 23% at 11:25a.m. local time, the biggest ever intra-day decline in its history.
Reuters
7 days ago
- 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.
