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Informist, Monday, Jul. 27, 2026

 

--Will issue market coupling norms soon, CERC tells SC on IEX plea 

--SC: No interim order being passed on IEX plea in market coupling case

 

NEW DELHI – The Supreme Court Monday said that no interim order was being passed on Indian Energy Exchange Ltd.'s plea against the Central Electricity Regulatory Commission's order to implement market coupling for the day-ahead market and amend regulations accordingly, and the case needs to be heard and would be listed soon. The Central Electricity Regulatory Commission told the apex court that the regulator would issue power market norms, which include a framework for market coupling, soon.

 

Indian Energy Exchange had sought withdrawal of the Central Electricity Regulatory Commission's July 2025 order on day-ahead market coupling. The order was to be implemented only after necessary regulations were made. The Central Electricity Regulatory Commission's order had adopted a round-robin model, where Indian Energy Exchange, Power Exchange India Ltd. and Hindustan Power Exchange would take turns acting as the market coupling operator. Grid-India was to act as a standby body and oversee audits, ensuring transparency.

 

According to the order, from January 2026, the Grid Controller Of India was to aggregate energy prices across all power trading platforms and publish a single price. This process was called day-ahead market coupling. Indian Energy Exchange dominates the electricity trading market with an overall share of about 85% and near-total presence in key segments such as the day-ahead market and real-time market. Since bids are placed independently on separate energy exchanges, price discovery across the platforms differs. With market coupling, a single market-clearing price will be used on all exchanges, erasing benefits for traders on the largest energy exchange platform.  

 

Indian Energy had argued that the commission's order was arbitrary and violated principles of natural justice. It claimed that the coupling order would only lead to loss of market share without any conceivable benefit. Appearing for Indian Energy, advocate Mukul Rohatgi had earlier said that the company had a freedom of enterprise, adding, "Can you merge NSE (National Stock Exchange) and BSE together?" 

 

In April, the Central Electricity Regulatory Commission released a draft notification on power market norms for public comments, which included a framework for market coupling. The Central Electricity Regulatory Commission had said that it had come out with draft rules on market coupling and dropped the round robin method, which was the objection raised by Indian Energy, and now the petitioner has to challenge the new draft.

 

In October, SEBI said officials at the electricity regulatory commission had traded in IEX derivatives and shares ahead of the market coupling decision that was likely to affect the company. The power regulator argued that SEBI's interim order against its officers did not contain any material allegation against its processes or proved mala fide in the issuance of the market coupling order.

 

On Feb. 13, the Appellate Tribunal for Electricity rejected Indian Energy Exchange's plea and said it was satisfied that the commission's proceedings would fall within the ambit of the expression "order" in section 111(1) of the Electricity Act, 2003, but held that Indian Energy was not "a person aggrieved" by the power regulator's order and so was not entitled to any relief.  

 

To protect the petitioner's rights, the appellate tribunal said its verdict would not prevent the company challenging the power regulator's order in the appropriate legal forum after the latter had drawn up the regulations. It also directed the commission to ensure that till the proceedings initiated by it and the Securities and Exchange Board of India against the former's officers who allegedly indulged in insider trading were concluded, those officers be kept away from the regulation-making exercise.

 

At 1314 IST, shares of Indian Energy Exchange Ltd. were up 1.8% at INR 126.48 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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