Energy regulator Central Electrical energy Regulatory Fee (CERC) is contemplating rationalising transaction charges charged by energy buying and selling exchanges, a transfer that would doubtlessly decrease electrical energy prices for consumers because the sector prepares for the rollout of market coupling.
The event comes as CERC advances with market coupling, a key reform aimed toward bettering effectivity, deepening liquidity and selling value convergence throughout energy exchanges. Over time, the adjustments are anticipated to scale back the general value of energy procurement for distribution corporations and enormous shoppers.
Market coupling, permitted by the regulator in July after greater than two years of deliberations, is proposed to be launched in a phased method, beginning with the day-ahead market (DAM) from January 2026, as per a PTI report. Underneath the mechanism, purchase and promote bids throughout all energy exchanges might be aggregated to find a single market-clearing value, changing the present system of a number of costs throughout platforms.
An official informed PTI that CERC has finalised a employees paper titled ‘Evaluation of Transaction Charge charged by the Energy Exchanges’ in December 2025. Talking on situation of anonymity, the official mentioned the regulator is analyzing whether or not the prevailing transaction charge framework — at present capped at 2 paise per unit — stays applicable in a market that has witnessed a pointy rise in buying and selling volumes and is transitioning to a unified value discovery system.
Among the many proposals into consideration is a hard and fast transaction charge of round 1.5 paise per unit for many buying and selling segments. At current, exchanges sometimes cost charges near the regulatory ceiling, the PTI report added. One other suggestion is to scale back the transaction charge to 1.25 paise per unit for term-ahead market (TAM) contracts, given their longer tenure and comparatively decrease operational depth in comparison with short-term trades.
India’s exchange-based energy market has expanded considerably over the previous decade. Electrical energy traded on exchanges has elevated over 16 instances since 2009-10, with whole traded volumes crossing 120 billion items in 2023-24. Whereas the day-ahead market earlier accounted for almost your complete traded quantity, real-time, intra-day and term-ahead segments now represent a rising share.
Trade specialists say market coupling is anticipated to slender value variations throughout exchanges, enhance utilisation of technology capability and allow consumers to entry energy at extra environment friendly charges. Indian Power Alternate (IEX) at present accounts for almost 90% of exchange-based energy buying and selling volumes, whereas Energy Alternate India Ltd (PXIL) and Hindustan Energy Alternate Ltd (HPX) comprise the rest. Underneath the permitted framework, all three exchanges will perform as Market Coupling Operators on a rotational foundation, with Grid-India appearing as a backup and audit operator to make sure system integrity.
Officers famous that transaction charge design will assume larger significance as soon as exchanges stop competing on value discovery. With transaction charges contributing over 95% of revenues for established exchanges, any recalibration is anticipated to have a cloth influence on the sector.
The PTI report added that discussions on transaction charges are nonetheless at a preliminary stage, and any last determination would comply with stakeholder consultations and align with CERC’s broader goal of enhancing effectivity, transparency and affordability in India’s energy markets.
