IEX Shares Crash 26% After Power Market Coupling Gets Green Light
Shares of Indian Energy Exchange Ltd (IEX) dropped sharply by 26% on July 24, hitting the lower circuit on the NSE. The sudden crash came after reports confirmed that the Central Electricity Regulatory Commission (CERC) had approved the implementation of market coupling in the Day-Ahead Market (DAM).
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What Is Market Coupling and Why It Matters
Under the new model, all buy and sell bids across different power exchanges will be collected and matched to discover a single, uniform price for electricity at any given point. This will be done using a round-robin system, where different exchanges take turns acting as the Market Coupling Operator (MCO).
Uniform Power Price to Be Introduced by January 2026
The CERC plans to roll out the first phase of this power market transformation by January 2026. Once implemented, this means there will be only one price at which electricity is traded across all exchanges, aiming for better efficiency and price discovery.
How This Will Impact Exchanges and Consumers
Post-implementation, power exchanges like IEX will only act as bidding platforms, without influencing price setting. While there’s no immediate impact on end-users, experts suggest it may lead to lower electricity prices in the long run, thanks to transparent and competitive pricing.
Government’s Broader Goal Behind Market Coupling
The Centre is pushing for market coupling not just for price discovery but also to shift away from traditional long-term power purchase agreements (PPAs), which often span 25 years. The government wants to increase the share of electricity traded via power exchanges, promoting open, competitive markets.
Stock Update: IEX Shares Slide to ₹139.02
At 12:00 p.m. on July 24, IEX stock was trading at ₹139.02, down by 26% on the National Stock Exchange. Investors reacted strongly to the regulatory shift, fearing reduced revenue and operational control for the exchange in a coupled market.
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