IEX shares jump 13% on media reports of withdrawal of market coupling regulation

Shares of Indian Energy Exchange (IEX) closed 8.8% higher after a CNBC TV-18 news report cited, withdrawal of the market coupling order by CERC. The shares closed rallied as much as 13% intraday, but later closed 8.8% higher at ₹146 apiece on the NSE.

The CNBC TV18 report stated, a lawyer representing the Central Electricity Regulatory Commission (CERC) told the Electricity Appellate Tribunal that they are ready to take instructions on withdrawing the July 23 market coupling order.

Following the order on market coupling, the shares of IEX slumped over 30% in two trading sessions. The report also added, “CERC told APTEL it will have to consult and seek instructions on withdrawal of the order. It said it wanted to make the coupling order more consultative, fair and transparent. It said it will take up the issue with CERC members, will take instructions on withdrawal of the coupling order.”

In other news, IEX also reported robust Q3 business updates. The total electricity trade volume at the Indian Energy Exchange (IEX) in October-December rose 11.9% to 34.08 billion units. During the quarter, the exchange traded 18.63 lakh renewable energy certificates (RECs), recording a 29.8% YoY decline.

Day-ahead market volume decreased 2.8% to 16,250 million units (MU) during the quarter from 16,712 MU in the same period last year. The real-time electricity market achieved a quarterly volume of 12,650 MU in December compared to 9,322 MU a year ago, a rise of 35.7%.

IEX Green Market, comprising the green day-ahead and green term-ahead market segments, achieved 2,647 MU volume in the December quarter, up 7.2% against 2,470 MU in the third quarter of the ongoing fiscal year.

The shares are down 14% in 12 months, accommodating major volatile events and headwinds. The company reported a 9.3% YoY jump in revenue at ₹152 crore as against ₹139 crore in the same period last year. Similarly, the net profit jumped 15% YoY to ₹122 crore