Power Ministry orders CERC to expedite process regarding IEX share
The Indian Energy Exchange or IEX shares have been experiencing a massive sell-off lately. Intraday trading alone has seen a drop of up to 15%. The cause behind this decline is the central electricity regulator’s order to initiate the market coupling process for all power exchanges in the country.
But what is market coupling? In essence, it means that there will no longer be separate price discovery in different power exchanges. All buy and sell orders in every exchange will be combined through the Market Coupling Operator (MCO), and a single price will be determined for each bidding zone.
Currently, different exchanges have different buy and sell orders, and price discovery is different in each exchange. Determining power tariffs is a complex process. At present, there are 288 price discoveries in three power exchanges.
To address this issue, the Power Market Regulation, 2021 has made necessary provisions for market coupling. The Ministry of Power has now ordered the Central Electricity Regulatory Commission (CERC) to expedite the process regarding IEX shares. After consultation with relevant parties, the final guidelines will be issued soon.
In summary:
– The Indian Energy Exchange or IEX shares are experiencing a massive sell-off.
– The central electricity regulator has ordered the market coupling process for all power exchanges in the country.
– Market coupling means that all buy and sell orders in every exchange will be combined through the Market Coupling Operator (MCO), and a single price will be determined for each bidding zone.
– The Power Market Regulation, 2021 has made necessary provisions for market coupling.
– The Ministry of Power has ordered the Central Electricity Regulatory Commission (CERC) to expedite the process regarding IEX shares.
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