How Information Disclosure Affects Electricity Markets

Flipping the Switch: How Regulatory Institutions Can Improve Power Deals Through Transparency and Standardization In this piece, published by the The Energy for Growth Hub, Rushaiya Ibrahim-Tanko Esq. and I argue that one of the surest ways of reducing the high cost of power generation is through the deliberate commitment to transparency of power purchase agreements. The Waste and inefficiencies that lead to high electricity cost are passed on to consumers through high tariffs or taxes. Undisclosed contracts undermine public trust, reduce efficiency, lead to unsustainable power sector debt levels, and deter reputable investors from entering the market. When Ghana’s public utility regulator first disclosed electricity contract information on its Power Purchase Agreement Register, it was hailed as a pioneering step for the continent, especially given the lack of data norms in many countries. However, Ghana’s approach is not unique — several countries already maintain electricity contract registers that offer both citizens and investors valuable insights into their power markets.............. https://lnkd.in/gKhxW_y7

"A confidential pricing agreement that Eskom has fought to keep secret until now reveals that the Hillside smelter, owned by the JSE-listed South32, received a sweetheart deal from the electricity utility potentially worth R92bn over 10 years. This emerges from an analysis of the full unredacted "negotiated pricing agreement" (NPA) which Open Secrets has finally managed to obtain, despite the fact that Eskom initially rejected an access to information request submitted in March 2024. The secretive pricing agreement was struck between South32 and Eskom in 2021 for the supply of electricity to the largest aluminium smelter in the southern hemisphere, South32's Hillside smelter in Richards Bay. This transaction has major repercussions for Eskom's fiscal stability, as Hillside consumes nearly 6% of Eskom's electricity. Yet Eskom refused to release the details, arguing that "disclosure … could disadvantage Eskom in other [pricing] negotiations with potential applicants, as insight to the redacted information … is likely to create an expectation of the same treatment". This refusal was remarkable, given that a 2013 Supreme Court of Appeal judgment had forced it to release the previous version of the agreement with South32's forerunner, BHP Billiton, because of the "undoubtable … public interest in the information". When that first agreement was made public, it sparked widespread anger as it revealed that BHP was paying only 15% the tariff ordinary consumers were paying. Yet, in a surprising move a few weeks back, Eskom sent the full unredacted NPA to Open Secrets without explanation. It turns out that Eskom’s decision followed behind-the-scenes wrangling between the information regulator and the utility, prompted by an Open Secrets complaint to the regulator regarding Eskom's refusal." https://lnkd.in/dw6E_N7N

IEX Insider Trading Scandal What happened? In July 2025, SEBI uncovered that senior officials at the Central Electricity Regulatory Commission (CERC) allegedly leaked confidential details of the Market Coupling directive before public release which was bound to have a significant impact on the listed securities of IEX. The senior officials then misused the information to trade in IEX shares. As per SEBI’s order dated October 2025, the eight individuals collectively made illegal gains totalling Rs 173.14 crore through trades in IEX shares. The largest gains were attributed to Bhoovan Singh, who profited Rs 72.03 crore, followed by his father Amar Jit Singh Soran with Rs 22.65 crore, and his mother Amita Soran with Rs 31.59 crore. Anita, the aunt of Bhoovan Singh earned Rs 3.09 crore, while Narender Kumar made Rs 34.53 crore, Bindu Sharma Rs 2.18 crore, and Virender Singh Rs 7.04 crore. The Evidence • Draft directives & internal minutes shared on WhatsApp • A clear UPSI trail • Traders front-ran the policy using put options The Damage • Illegal gains: ₹173 crore • Retail investors blindsided • IEX stock crashed ~30% in one day (₹169 → ₹132) Why this matters: This isn’t just about IEX. It’s about: • Trust in regulators • Fairness for retail investors • The future structure of India’s power markets When policy-making itself comes under the insider-trading scanner, the credibility of the system is at stake. #SEBI #insidertrading #IEX #CERC

When electricity policy moves markets! In October, SEBI called CERC’s market-coupling order unpublished price-sensitive information (UPSI), impounding about ₹173 crore in trades. Two weeks later, CERC launched its own suo-motu probe under the Electricity Act. For the first time, India’s capital and power regulators are examining the same event through different lenses - securities law and market conduct. At Comm'fident, we see this as more than a compliance episode; it’s a communications test: how timing, access and disclosure now shape trust in India’s evolving power market. In our latest #collab article, Nishant Saxena and I unpack this rare cross-regulatory moment, its legal and market implications, and why information governance is emerging as India’s newest infrastructure. → Read the full article here and let us know your thoughts.