Is market coupling a threat for IEX?
More than 90% of the buyers and sellers solely depend on the IEX platform for exchange of electricity, but the introduction of market coupling could change this. Market coupling would mean somebody from a different exchange will also be able to buy electricity from a seller on IEX because the orders will be matched by a government-appointed authority. In other words, it doesn’t matter which platform the buyers and the sellers are on. They would get the same price irrespective of which exchange they use.
IEX will lose its authority to determine prices, leading to a potential loss of market share. This will create an opportunity for the other two exchanges to gain a larger market share.
Industry insiders are talking about another theory which is apparently doing the rounds in the government circles – that since NTPC has acquired a 5% equity stake in PXIL, which hardly has any volumes and market share, the introduction of market coupling will benefit the two.
Subscribe To Our Free Newsletter |