Dues of power distribution companies to power producers come down from Rs 5,085 crore to Rs 713 crore

19 Sep 2022 , 09:24 AM

Following stringent action against defaulter utilities, the amount owed by power distribution companies to gencos fell dramatically to Rs713.29 crore on Friday from Rs5,085.30 crore as of August 17.

According to the Electricity (Late Payment Surcharge and Related Matters) Rules 2022, which were announced by the power ministry in June 2022, the defaulter utilities were prohibited from trading at power exchanges.

IEX, PXIL, and HPX were asked by the national grid operator Power System Operation Corporation Ltd. (POSOCO) last month to ban the trading of electricity by 27 discoms in 13 states that still owe gencos money.

For adding transparency to generator invoices, the PRAAPTI stands for Payment Ratification and Analysis in Power Procurement.

According to the most recent update for September 16, 2022, the three discoms in Karnataka are Hubli Electricity Supply Company Ltd (Rs36.29 crore), Chamundeshwari Electricity Supply Corporation Ltd (Rs10.49 crore), and Gulbarga Electricity Supply Company Ltd (Rs11.24 crore).

According to the most recent PRAAPTI statement, the Jammu and Kashmir Power Distribution Department owes Rs655.26 crore.

State utilities may be prohibited from trading on electrical exchanges under the payment security mechanism if they fail to pay dues and other fees to gencos.

The provision that “the supply of power shall be given only if an effective payment security mechanism is maintained or, in the absence thereof, advance payment is made” is stated.

In order to limit the trading of electricity by utilities in 13 states, including those in Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, Bihar, Chhattisgarh, and Jharkhand, POSOCO issued a directive to Indian Energy Exchange (IEX), Power Exchange of India (PXIL), and Hindustan Power Exchange (HPX) last month.

The integrated operation of the Indian power system is managed by POSOCO, a public sector organization that reports to the Union Power Ministry.

In a letter sent to the three exchanges, POSOCO stated that starting on August 19, 2022, all buy and sell transactions in the electricity market for the discoms (27 discoms in 13 states) will be completely prohibited until further notice.

According to information on the PRAAPTI webpage, the decision was made in light of the unpaid bills for these utilities.

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