CERC passes suo motu order in the matter of revised trading and contract design for power markets

The Central Electricity Regulatory Commission (CERC) has passed a suo motu order titled the CERC (Power Market) (Revised Trading and Contract Design) Order, 2025, to standardise short-term electricity contracts and improve efficiency in power trading across exchanges. In the day ahead contingency segment, exchanges must now use a uniform price step auction mechanism instead of continuous matching, enhancing transparency and preventing price manipulation.