Market coupling is said to have the potential to reduce market fragmentation, increase economic surplus and lead to uniform price discovery by definition. However, the staff paper points out several areas of ambiguity and potential risks in coupling the power exchanges. Structural changes to the most mature and efficient segment of the power exchanges can be irreversible and disruptive. Therefore, we need more discussions and clarity on the issues before proceeding. Until we have clarity on many aspects, market coupling should not be introduced and the three exchanges should be allowed to operate independently.

In the meantime, it is important to deepen and broaden short-term transactions on the power exchanges. To increase liquidity, we suggest that: