ENA Sectors 2026-04-21 15:57:30 <p><span style="font-size:14px"><strong>New Delhi, Apr 21 (KNN)</strong> The Central Electricity Regulatory Commission (CERC) has proposed a major overhaul of Indias electricity market, introducing a framework for a single, centrally discovered power price across exchanges through market coupling.<br /> <br /> The Draft (Power Market) (Second Amendment) Regulations, 2026, issued on April 17, aim to aggregate bids from all power exchanges to determine a uniform market clearing price, replacing the current system where exchanges independently discover prices.<br /> <br /> <strong>Grid India to lead price discovery</strong><br /> <br /> Under the proposal, Grid Controller of India Ltd will act as the Market Coupling Operator (MCO), responsible for aggregating bids and determining prices, reported Financial Express.<br /> <br /> Price discovery shall be done by the Market Coupling Operator, the draft stated, adding that until formal notification, exchanges will continue to handle price discovery.<br /> <br /> <strong>Shift from decentralised pricing</strong><br /> <br /> The move marks a shift from the existing decentralised model, which often results in multiple prices for electricity across exchanges. <br /> <br /> The new mechanism will use a standardised bid format, with exchanges transmitting data to the MCO for centralised price determination based on maximisation of economic surplus.<br /> <br /> A uniform price will apply under normal conditions, while market splitting will allow regional price differences in case of transmission congestion.<br /> <br /> <strong>Phased rollout and operational framework</strong><br /> <br /> The reform will initially cover the Day-Ahead Market (DAM) and Real-Time Market (RTM), with plans to extend it to other segments in phases. <br /> <br /> Grid India has been tasked with developing a detailed Power Market Coupling Procedure (PMCP) within six months, outlining bid formats, algorithms and settlement processes.<br /> <br /> <strong>Impact on power exchanges</strong><br /> <br /> The proposal is expected to significantly alter the role of power exchanges such as Indian Energy Exchange and Power Exchange India Ltd, as pricing control shifts to a central operator.<br /> <br /> The move is expected to impact revenue models, as exchanges transition from price discovery to platform-based services. Market analysts noted that the change may also intensify competition among trading platforms.<br /> <br /> Reflecting investor sentiment, shares of Indian Energy Exchange declined sharply following the announcement.<br /> <br /> <strong>Towards a unified electricity market</strong><br /> <br /> According to the regulator, market coupling is expected to improve transmission utilisation, enhance liquidity, and enable efficient price discovery by consolidating bids into a single pool.<br /> <br /> Indias short-term power market has been expanding steadily, reaching 218.22 billion units in 2023-24, highlighting the scale of the proposed reform.<br /> <br /> CERC has invited stakeholder comments on the draft framework by May 16, 2026, after which the final regulations will be issued, paving the way for a unified national electricity market with a single price benchmark.<br /> <br /> <em><strong>(KNN Bureau)</strong></em></span></p> 45867 https://knnindia.co.in/news/newsdetails/sectors/cerc-draft-norms-aim-for-uniform-power-pricing-via-market-coupling 2026-04-21 15:57:30 knnindia.co.in