IEX shares gain 4% after CERC notifies regulatory framework for Carbon Credit Certificates trading

Shares of Indian Energy Exchange Ltd. (IEX) gained as much as 4% on Wednesday, March 11, as the Central Electricity Regulatory Commission (CERC) has notified regulatory framework for governing the purchase and sale of carbon credit certificates (CCCs).These exchanges are the primary venue for the trading of CCCs. It creates distinct compliance and offset market segments for obligated and non-obligated entities.

It also designates the Grid Controller of India as the registry. The Bureau of Energy Efficiency (BEE) would act as the administrator responsible for the procedures, registrations, monitoring and dissemination of market information.
This is said to be a long-term positive for IEX and power exchanges.
On another note, around a month ago, the Appellate Tribunal for Electricity (APTEL) dismissed IEX’s plea against the CERC’s market coupling direction and it allowed the latter to proceed with the framing of regulations.APTEL stated that if IEX had fresh grievances regarding the regulations, it could move a new plea to challenge them. Click here to read all about the case and its timeline.

IEX reported a 11% increase in its net profit for the third quarter at ₹119 crore, while its revenue was up 10% at ₹146 crore from ₹132 core in the previous year.

Its earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter increased 8% to ₹122.3 crore from ₹113.4 crore in the previous year. EBITDA margins remained stable at 84% from 85.9% in the year-ago period.

IEX shares were up 3.6% higher at ₹125.48 apiece around 9.30 am on Wednesday.

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