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The Central Electricity Regulatory Commission (CERC) has found Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL) violating power market regulations.
In an order dated June 10, 2016, the CERC said transparency had been compromised and sought explanations from the exchanges.
Power market regulations empower the CERC to direct investigations into the affairs of any electricity trader or exchange or member of exchange. The CERC engaged Deloitte Touche Tohmatsu and KPMG Advisory Services to review the performance of IEX and PXIL, respectively. The investigators submitted their reports last month and the CERC asked the exchanges to reply to the review and comply with the recommendations.
The exchanges have been asked to specify timelines for complying with the recommendations made in the reports. As per the power market regulations, the exchanges are supposed to ensure fair, efficient and robust price discovery and design standardised power trading contracts and work towards increasing liquidity in such contracts. IEX declined to comment on the issue. PXIL could not be reached for comments.
