CERC rejects HPX plea for PTC stake dilution extension

The Central Electricity Regulatory Commission (CERC) has rejected a petition filed by Hindustan Power Exchange Limited (HPX) seeking a three-year extension for PTC India Limited to reduce its shareholding in the exchange from 22.62% to 5% after becoming a trader member.

The Commission also dismissed an intervention application filed by Indian Energy Exchange (IEX), holding that it was neither a necessary nor a proper party to the proceedings.

Background

HPX was granted registration as a power exchange on May 12, 2021, and commenced operations on July 6, 2022. At the time of registration, PTC held a 22.62% stake in HPX.

During the registration process, concerns were raised regarding PTC’s shareholding exceeding the limit prescribed for exchange members. HPX had then undertaken that if PTC became a trading member of the exchange, it would reduce its shareholding to 5%. This undertaking was recorded in CERC’s May 12, 2021 order.

However, PTC continued to hold a 22.62% stake as of September 30, 2025. In August 2025, it expressed its intention to become a trader member and sought a three-year period to complete the dilution.

Commission’s findings

CERC noted that HPX had been operating for more than three years, providing adequate time for PTC to reduce its shareholding if it intended to become a trader member.

The Commission observed that Regulation 15(1)(b) of the CERC (Power Market) Regulations, 2021 clearly restricts a member or client of a power exchange from holding more than 5% shareholding in the exchange.

CERC also distinguished the case from earlier extensions granted to Power Exchange India Limited (PXIL). It noted that the entities involved in those cases held 6.84% stakes each, whereas PTC is a Category-I inter-State trading licensee with a significant presence in the electricity trading market.

According to the order, PTC traded around 51,095.64 MUs during FY 2024-25, accounting for about 31.80% of the total bilateral electricity volume transacted through licensed traders in India.

The Commission held that permitting such a large trader to become a member while retaining a 22.62% stake in the exchange would not be in the public interest and could create an unlevel playing field.

IEX intervention rejected

CERC rejected IEX’s intervention application, stating that no relief had been sought against the exchange and that an effective order could be passed without its participation.

The Commission further observed that a competing power exchange cannot claim a right to be heard solely on the basis of potential commercial impact.

Order

CERC ruled that if PTC wishes to become a trader member of HPX, it must first reduce its shareholding in the exchange to 5% in accordance with Regulation 15(1)(b) of the Power Market Regulations, 2021.

The petition and the related interlocutory application were disposed of accordingly.

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