Friday, December 26
Shares of Indian Energy Exchange (IEX) fell over 4% in Friday’s sessiontrading near Rs 134after a report indicated a potential revision in transaction fees charged by power exchanges in India.
According to a report by The Economic Timesciting sources, the Central Electricity Regulatory Commission (CERC) is considering a lower, uniform transaction fee of around 1.5 paise per kilowatt hour (kWh) per side for most trading segments. Currently, power exchanges charge 2 paise per kWh on both the buying and selling sidesresulting in a total transaction fee of nearly 4 paise per kWh.
The report further noted that for longer-duration contractssuch as those under the Term-Ahead Market (TAM)transaction fees could be reduced further to around 1.25 paise per kWh. This has raised concerns among investors about a potential impact on exchange-level revenuesespecially for market leaders like IEX that derive a significant portion of their income from transaction charges.
However, the report also clarified that discussions are still at a preliminary stageand no final decision has been taken by the regulator yet.
Despite the lack of formal confirmation, the possibility of a fee cut has weighed on sentiment, leading to selling pressure in Indian Energy Exchange shares. The stock was among the top losers in early trade, reflecting market sensitivity to regulatory developments in the power trading space.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
Comments are closed.