CERC Approves Standardized Time Slots For Power Trading Across Indian Exchanges

In a significant move aimed at improving transparency and efficiency in India’s electricity trading system, the Central Electricity Regulatory Commission (CERC) has issued a joint order concerning petitions filed by the country’s leading power exchanges, including Indian Energy Exchange Limited (IEX), Power Exchange India Limited (PXIL), and Hindustan Power Exchange Limited (HPX). The order, dated May 21, 2026, introduces standardized and pre-specified time slots for electricity trading contracts across exchange platforms.

The decision represents the final implementation phase of a regulatory reform process that began with a Suo-motu order issued by CERC in April 2025. Through that earlier directive, the commission instructed all power exchanges to discontinue customized and user-defined hourly time slots in the Term Ahead Market (TAM), Green Term Ahead Market (GTAM), and High Price Term Ahead Market (HP-TAM). The regulator believed that allowing customized trading windows was leading to fragmented market participation and reduced liquidity. By replacing these flexible slots with uniform trading blocks, CERC aims to create a more streamlined and transparent electricity market structure.

During the consultation process, all three power exchanges submitted proposed frameworks for the new time-slot structure after discussions with utilities, grid operators, and other stakeholders. One of the major issues raised during the proceedings was the possibility of aligning electricity trading slots with regional peak demand hours. However, Grid India informed the commission that electricity demand patterns differ widely across India because of varying weather conditions and regional consumption trends.

According to Grid India, northern states generally experience peak electricity demand during evening hours, while some other regions witness demand spikes in the early morning or late-night periods. The grid operator cautioned that adopting a single national peak-hour definition could disrupt procurement planning for many states. At the same time, introducing separate regional peak-hour slots could divide market participation and weaken liquidity on power exchanges.

Another operational challenge highlighted was that Regional Load Despatch Centres declare peak demand periods only one month in advance, whereas TAM contracts permit electricity procurement for up to 90 days ahead. Because of this mismatch, stakeholders agreed that a standardized national framework would be more practical for exchange-based power trading.

Based on these discussions, CERC approved a uniform daily block structure for TAM, HP-TAM, and GTAM-Hydro contracts across all exchanges. Under the new system, the Evening Peak slot will run from 18:00 to 24:00 hours, while the Night Off-Peak slot will cover 00:00 to 06:00 hours. The Morning Peak block has been fixed from 06:00 to 09:00 hours, and the Day Off-Peak slot will operate between 09:00 and 18:00 hours. In addition, a Round-the-Clock (RTC) contract covering all 24 hours will continue to remain available for buyers seeking uninterrupted supply.

The order also introduces separate categories for solar and non-solar power trading. Solar contracts will operate between 06:00 and 18:00 hours, while non-solar trading will be conducted from 00:00 to 06:00 hours and 18:00 to 24:00 hours. For GTAM segments other than hydro, exchanges will continue to allow customized daily profiles within a 24-hour delivery period to support renewable energy variability. All power exchanges have now been directed to amend their business bylaws to implement the newly approved trading structure.