CERC Eyes Transaction Fee Overhaul in Power Market

The Central Electricity Regulatory Commission is considering changes to transaction fees on power trading exchanges. This move aims to potentially lower electricity prices as the power sector enters market coupling, aiming at efficiency, deeper liquidity, and price convergence across exchanges, beginning with the day-ahead market from January 2026.

The Central Electricity Regulatory Commission (CERC) is contemplating a revision of transaction fees on power exchanges, with expectations of lowering electricity prices. This initiative follows efforts to implement market coupling, a reform designed to enhance efficiency and foster price convergence across various trading platforms.

Having been approved after extensive deliberations, market coupling is set to be introduced through phases starting January 2026. Its implementation in the day-ahead market will amalgamate buy and sell bids to establish a single market-clearing price, instead of multiple prices across different exchanges.

Experts believe this could reduce power costs and improve capacity utilization, benefiting both distribution companies and large consumers. Any fee adjustments await further stakeholder consultations, aiming to boost transparency and affordability in India's power sector.