If If everything goes well, electricity consumers across the country can get big relief soon. Yes, electricity prices are likely to fall in the near future. Actually, the Central Electricity Regulatory Commission (CERC) is considering rationalizing the transaction fees charged on power trading exchanges. The aim of this initiative of CERC is to potentially reduce electricity prices. These reforms will be helpful in increasing efficiency, strengthening liquidity position and rationalizing prices across different exchanges.
Will start in a phased manner in January 2026
This move by the Central Electricity Regulatory Commission may reduce the overall cost for power buyers over time. Market consolidation was approved by CERC in July this year after deliberations lasting more than two years. It is proposed to be implemented in a phased manner, starting from January 2026. Market consolidation means combining the buying and selling of electricity in different exchanges into a single system, so that a single price is fixed.
Central Electricity Regulatory Commission is investigating many aspects
CERC has finalized a term paper on review of transaction fees to be charged by power exchanges in December 2025, an official said. The official, speaking on condition of anonymity, said the Central Electricity Regulatory Commission is examining whether the current transaction fee structure, which is capped at two paise per unit, is appropriate for a market where trading volumes have grown rapidly and which is moving towards an integrated price discovery system.
These options are being discussed
The options being considered include a fixed transaction fee of 1.5 paise per unit for most trading segments. Under the current framework, power exchanges generally charge close to the prescribed limit. Another proposal being considered is a lower fee of 1.25 paise per unit for Term-Ahead Market (TAM) contracts, reflecting their longer tenor and comparatively lower operational intensity.
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