IEX shares fall after market coupling hearing at APTEL likely deferred to November 28

Shares of Indian Energy Exchange Ltd. (IEX) are recovering from the lows of the day on Thursday, October 30, after the Electricity Appellate Tribunal (APTEL) has deferred the hearing of the company's plea challenging the CERC directions for market coupling.

APTEL noted in its statement that IEX is the biggest power exchange and it claims that its market share will be impacted. Members of the tribunal recused from hearing IEX's plea against the CERC order.

The next hearing is likely to now take place on November 28.

IEX had moved the APTEL, challenging the CERC order from July, directing for market coupling of leading electricity exchanges. During the previous hearing on October 13, IEX was asked to file a revised plea by Appellate Tribunal, adding more parties as respondents.

New parties added in the plea are Grid Corporation of India, which was responsible for pilot studies and test run for market coupling and the competitors of IEX, Power Exchange of India and Hindustan Power Exchange.

The Tribunal had asked IEX to file revised plea in a week after October 13 and new parties were asked to file the response before today’s hearing.

Shares of IEX had declined 30% in July this year after the Central Electricity Regulatory Commission (CERC

) had approved the implementation of the market coupling norms, with the Day Ahead Market (DAM), in line with the Power Market Regulations, 2021.

IEX is seeking setting aside of the CERC order on market coupling, and till the case is decided, it is seeking a stay on the order.

The IEX petition claims that the CERC order is arbitrary, and violates the principles of natural justice. It also claims that the coupling order will only lead to loss of market share, without any conceivable benefits.

IEX also added in its petition that the CERC order disrupts regulatory framework which has evolved over the last 17 years.

Shares of IEX are trading above the levels of July 24 that they had tanked to after the market coupling news. Brokerage firm Jefferies had maintained its "underperform" rating on the stock, expecting it to fall to ₹105. The stock though, reversed from those levels of around ₹130.

Shares of IEX are trading 2.8% lower after the delay at ₹144.43, after making an intraday low of ₹140. The stock is still down 20% year-to-date.

(With Inputs From Ashmit Kumar.)