Indian Energy Exchange (IEX)

Thanks Amnesiac for your response.

So, your comment, “So in this scenario, all transactions occur on MCO while the role of IEX will be primarily of price discovery.” suggests that price discovery would happen on IEX. This is in contrast to the above reply from Amey or what is in general being proposed. Hence wanted to confirm. Was there a typo in your comment or did you really mean to say that price discovery would happen on IEX. Because if it is the latter, then isn’t it better for IEX? Since if price discovery happens on IEX, then it will attract more bidders and hence greater volume?

And now about IEX being reduced to just a broker, would it be still fair to compare it with other stock market brokers? I am asking this because, (a) there are many many stock market brokers but just 3 power exchanges and opening of new power exchanges doesn’t look so viable near term at least.
And (b) With greater uncertainties on fuel supply side and pricing on one hand and push towards renewables and operations optimization on the other hand, isn’t there a natural unidirectional unobstructed push towards power exchange business which, for stock market brokers, is not so unidirectional considering alternate options of investments?
And therefore, shouldn’t exchanges command higher multiples?

Again, sorry for the counter argumentation. But I feel that there isn’t as much threat to the long term business model of IEX as was projected in the media.

Please let me know your views.

Disc: Invested, could be biased.