Archive · 28 Dec 2025
CERC Considers Lowering Power Trading Fees
The Central Electricity Regulatory Commission (CERC) is thinking about changing the fees for buying and selling electricity on power trading exchanges.
This change is part of a bigger plan called 'market coupling,' which will start in January 2026.
The goal is to make electricity prices lower and more fair.
Right now, the fee is up to 2 paise per unit, but they might lower it to 1.5 paise or even 1.25 paise for longer-term deals.
This could help people and companies buy electricity at better prices.
The Indian Energy Exchange is the biggest player in this market, with 90% of the trading volume.
The CERC wants to make sure the changes are fair and good for everyone before making a final decision.
CERC is considering lowering transaction fees on power trading exchanges to reduce electricity prices.
Market coupling, approved in July 2025, will start in January 2026, aggregating bids across exchanges for a single market-clearing price.
Proposed transaction fees include a fixed 1.5 paise per unit or 1.25 paise for term-ahead market contracts.
India's exchange-based power market has grown significantly, with traded volumes crossing 120 billion units in 2023-24.
Indian Energy Exchange dominates the market with nearly 90% of trading volumes.
- Who
- Central Electricity Regulatory Commission (CERC)
- What
- Considering rationalizing transaction fees on power trading exchanges
- When
- Implementation of market coupling to start in January 2026
- Where
- India
- Why
- To potentially lower electricity prices and improve market efficiency
- Regulator
- Central Electricity Regulatory Commission (CERC)
- Proposed Mechanism
- Market Coupling
- Implementation Start Date
- January 2026
- Current Transaction Fee Cap
- 2 paise per unit
- Proposed Fixed Fee
- 1.5 paise per unit
- Proposed TAM Fee
- 1.25 paise per unit
- Total Traded Volumes (2023-24)
- 120 billion units
- Major Exchange
- Indian Energy Exchange (90% market share)
