APTEL hearing on CERC market coupling order records key statements

A hearing before the Appellate Tribunal for Electricity (APTEL) on January 6, regarding the Central Electricity Regulatory Commission’s (CERC) controversial power market order, saw important submissions from the tribunal and the regulator’s legal counsel.

The CERC’s lawyer informed APTEL that the commission is prepared to take instructions from the tribunal on the possible withdrawal of its order dated July 23, 2025. The order relates to market coupling in power exchanges and had earlier led to a sharp fall in the share price of Indian Energy Exchange Limited (IEX). APTEL indicated that if the CERC officially communicates its intent to withdraw the July 2025 order, the tribunal may close the matter as early as Friday, January 9.

The CERC counsel stated that the commission will need internal discussion and instructions on the matter, while stressing that any future market coupling framework would be more consultative, fair, and transparent. The counsel added that the issue will be taken up with the full commission.

During the proceedings, APTEL made critical remarks about the original order. The tribunal recorded submissions that the market coupling regulations were framed “only for some officers to make money” and noted that it had seen “a lot of theatrics” in how the regulations were brought in. It observed that the regulation “could have been done quietly by CERC,” adding that such theatrics were a concern.

The tribunal also underlined that it expects the CERC to function independently and remain “above suspicion like Caesar’s wife.” It said that if any procedural impropriety was involved, it would want to examine the matter to ensure such issues do not recur.

IEX, which has challenged the order, argued that even without any findings from the Securities and Exchange Board of India (SEBI) on insider trading, the coupling order is inherently flawed. The exchange submitted that the order is arbitrary, violates principles of natural justice, and could cause loss of market share without clear benefits. IEX has sought a stay on the order until the final resolution of the case.

The matter has been adjourned, and the next hearing is scheduled for January 9.

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