IEX shares crash as CERC plans to unify electricity pricing
IEX shares took a big 30% hit after the power regulator (CERC) said all electricity exchanges in India will soon use a single, unified system to set prices.
This new rule, coming by January 2026, could break IEX's current monopoly on how day-ahead electricity is priced.
IEX could see its profits halved
With market coupling, IEX could lose its edge—less control over prices means lower transaction fees, which make up most of its earnings.
Analysts warn profits might drop by nearly half as competition heats up and margins shrink.
Plus, with big investors holding lots of shares, there's extra pressure on IEX's value.
Why is the CERC making this move?
The goal here is to make electricity trading fairer and more efficient across India—no more price gaps between regions.
By combining all bids and clearing them centrally, the system aims for transparency and a level playing field for everyone involved.