CERC draft regulations on mkt coupling do not serve consumer interest: IEX

IEX says proposed market coupling norms may not benefit consumers or deepen markets, as CERC designates Grid India to centrally manage price discovery

Days after the Central Electricity Regulatory Commission (CERC) proposed market coupling for centralised power market price discovery through draft regulations, a senior official at India Energy Exchange said that the move does not serve consumer interest, while adding that it does not meaningfully enhance market depth.

 

“In the present form, the draft does not serve any interest of consumers and does not meaningfully enhance market depth,” said Rohit Bajaj, joint managing director, Indian Energy Exchange.

 

In the draft amendment to the CERC (Power Market) Regulations, 2021, the regulator has designated Grid India as the market coupling operator (MCO) to centrally manage the price discovery process by combining buy and sell bids from all power exchanges into a single pool.

 

“The draft regulations are presently only at a consultative stage and will be finalised post stakeholder comments. It is yet to be seen if the final regulations will impact present exchange businesses,” he added.

 

Market coupling is a mechanism to improve the efficiency and integration of multiple interconnected markets.