Indian Energy Exchange (IEX) shares crashed 10% on July 24 after big news shook the power market. The electricity regulator has now approved power market coupling for the Day-Ahead Market (DAM), sending shockwaves through the stock.
IEX shares were stuck at the lower circuit on NSE, trading at ₹169.1, down 10%. This sudden fall came right after reports said the Central Electricity Regulatory Commission (CERC) had cleared the new rule for market coupling.
So, what’s really happening?
What Is Power Market Coupling?
Power market coupling is a system where all buy and sell bids across different power exchanges are brought together. These bids are then matched to set a single market clearing price (MCP) across all platforms.
Simply put, no matter which exchange you buy from, the price of electricity will be the same for everyone. That means no exchange will have a price advantage anymore.
This new system is set to roll out in phases. In the first phase, the Day-Ahead Market (DAM) will be coupled by January 2026.
Why Did IEX Share Price Crash?
Right now, IEX has a strong grip in the power trading space. But with market coupling, its monopoly is likely to reduce. All power exchanges will now just act as platforms to collect bids. The final price will be decided by a central Market Coupling Operator (MCO) in a round-robin system.
This change reduces the influence IEX has on setting prices or attracting more trades. That’s why IEX shares fell sharply, with investors fearing lower revenues and reduced control.
What Does It Mean for You and the Market?
As a regular power consumer, you won’t feel any big change right away. But in the long run, experts believe market coupling could lead to lower power tariffs.
Also, this move is part of the government’s larger plan to push for short-term electricity trading. Right now, most of India’s electricity is sold through long-term contracts (PPAs) which last for 25 years or more. The Centre wants to change that.
By building a transparent, one-price market, the idea is to boost competition and make pricing more efficient.
IEX Share Price: A Quick Recap
- Current Price (July 24): ₹169.1 (-10%)
- Reason: Regulator clears market coupling rules
- Timeline: DAM to be coupled by Jan 2026
- Impact: Single power price across exchanges, reduced dominance of IEX
Disclaimer:
This article is for informational purposes only and is not financial advice. Please consult a certified advisor before making investment decisions.
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