Indian Energy Exchange gets regulatory clearance

27 June 2008

Mumbai: Indian Energy Exchange Ltd (IEX), the country's first power bourse, is all set to commence operations at the Multi Commodity Exchange of India (MCX), after it received regulatory clearance from the Central Electricity Regulatory Commission (CERC).

IEX, the country's first national level demutualised power exchange, is promoted by MCX parent company Financial Technologies along with power trading firm PTC India Ltd.

Other stakeholders include Tata Power, Reliance Energy Ltd, Infrastructure Development Finance Co Ltd, Lanco Infratech, state-run Rural Electrification Corp and Adani Enterprises Ltd.

The energy exchange will act as a trading platform for electricity where electricity generators, distribution licensees at the national level can trade for smaller quantities and smaller number of hours without additional overloads.

Price of electricity on the IEX, a spot exchange, will be decided on the basis of actual demand/supply of energy and will be determined on the basis of bids and offers during the transaction period.

While commodity exchanges trade in futures IEX will trade only in spot electricity transactions that will settle with delivery of electricity.