The APTEL has asked IEX to add the Grid Corporation of India, Power Exchange of India (PXIL), and Hindustan Power Exchange (HPX) as additional respondents
Indian Energy Exchange (IEX) shares ended 1% lower on Tuesday due to a new plea request from the electricity tribunal regarding market coupling, which is impacting power exchange dynamics. The Appellate Tribunal for Electricity (APTEL) has reportedly instructed IEX to file a revised petition in the ongoing market coupling case.
The APTEL has asked IEX to add the Grid Corporation of India, Power Exchange of India (PXIL), and Hindustan Power Exchange (HPX) as additional respondents, according to a report by CNBCTV18.
IEX has been granted one week to submit the amended plea, while the respondents must file their responses before the next hearing on October 30.
What is Market Coupling?
India has three power exchanges: IEX, PXIL, and HPX. Each discovers its own market-clearing price (MCP) based on separate buy and sell bids. As a result, electricity prices differ slightly across exchanges.
Market coupling aims to streamline this system by aggregating all bids nationwide and setting one standard market price for electricity. Once implemented, exchanges will no longer set prices independently but instead act as platforms for trade.
What Is The Issue?
The current case stems from IEX’s challenge to the Central Electricity Regulatory Commission’s (CERC) July 23 directive mandating a phased rollout of market coupling across India’s electricity exchanges.
The regulator proposed starting with the Day-Ahead Market (DAM) in January 2026 and then expanding to the Real-Time Market once sufficient operational experience is gained. The order had also sparked a sharp market reaction, with IEX shares tumbling nearly 30% after its announcement.
IEX contended that the CERC order was “arbitrary” and violated established market principles and natural justice norms.
Analyst’s Take
IEX has sought CERC’s approval to introduce Peak Power and Green Power markets, enabling power trading during high-demand hours and from renewable sources. These initiatives could enhance market depth, support renewable integration, and diversify IEX’s revenue streams, said SEBI-registered Front Wave Research.
CERC has proposed implementing a market coupling mechanism, which could potentially reduce IEX’s pricing dominance. In response to this, IEX requested flexibility in trading regulations to align with new electricity norms and modernize transactions.
IEX Strengths and Weaknesses
IEX has very high EBITDA margins and a debt-free balance sheet, consistently returning over 60% of profits to shareholders. However, pressure on net realizations, rising dependence on volatile investment income, and regulatory uncertainty over market coupling loom large.
With CERC’s final decision expected in January 2026, investors should watch for trends in revenue realization and operational profitability, they added.
Stock Watch
IEX shares closed 0.6% lower at ₹136.2 on Tuesday.
Retail sentiment on Stocktwits shifted to ‘neutral’ from ‘bearish’ last week.
Year-to-date, the stock has shed over 25%.
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