NEW DELHI, Jan 20, 2026, 13:02 IST
- IEX shares dropped Monday after the power minister confirmed there was no shift in market coupling policy.
- APTEL will review IEX’s appeal against CERC’s July 2025 order on day-ahead market coupling.
- Regulators warn that coupling would consolidate power price-setting into one cleared price, sparking concerns about disrupting competition between exchanges.
Shares of Indian Energy Exchange (IEX) fell on Monday following the power minister’s reaffirmation that the government’s position on market coupling remains unchanged, just before a key hearing at the Electricity Appellate Tribunal.
The stock dropped 1.47% to 137.1 rupees on the BSE, fluctuating between 133.65 and 141.90 rupees. Its market capitalization stood near 123.2 billion rupees. The planned reform, set for January 2026, would have Grid-India consolidate bids in the day-ahead market — where power is traded for next-day delivery — and release a single cleared price instead of separate prices across platforms. 1
This is crucial because it strikes at the heart of how the short-term power market establishes its benchmark price. Remove the separate auctions, and you lose one key factor driving buyers and sellers to favor one exchange over another.
IEX leads the day-ahead and real-time markets, insisting that moving price discovery away from exchanges would damage competition. On the flip side, smaller players like Power Exchange of India and Hindustan Power Exchange represent the opposing view.
APTEL is scheduled to consider IEX’s request to withdraw the Central Electricity Regulatory Commission’s (CERC) July 2025 directive on day-ahead market coupling. Just before the hearing, CERC circulated a note clarifying that its July communication should be seen as a “direction” rather than an “order,” according to Angel One. The report also noted that CERC’s counsel had previously told the tribunal the regulator was willing to accept instructions to retract the directive, and the tribunal suggested the case could be resolved swiftly if that intention is formally confirmed. 2
IEX has escalated its legal challenge, telling the tribunal the criteria used to approve the coupling order were “fundamentally wrong,” according to ScanX. The tribunal emphasized that regulators’ house “must be in order” and “must be above suspicion,” ScanX reported. Meanwhile, CERC’s counsel insisted the commission won’t proceed with coupling until proper regulations are established. ScanX also noted IEX cited a market regulator report alleging insider trading by certain CERC officials, with illegal gains totaling 173 crore rupees. 3
The minister’s comment on Monday shows the policy push is still active, despite ongoing debates among lawyers over process, wording, and control of the machinery. This clash—politics versus tribunal procedure—is what keeps the stock swinging unpredictably.
Still, plenty could derail the process. Should the tribunal uphold CERC’s directive and the government push forward, the market might swiftly shift to a single-price setup. But if the case stalls or the rulebook takes longer than planned, investors could remain stuck with the same overhang and headline-driven swings.
Traders are keeping a close eye for signs on whether the directive will stay intact, be scaled back, or return to regulators for revision. In a market driven by daily auctions, even minor changes in who determines the clearing price can have a big impact.
