Outstanding dues of power distribution companies towards gencos declined sharply to Rs 713.29 crore on Friday from Rs 5,085.30 crore as of August 17 following a strict action against defaulter utilities.
The defaulter utilities were barred from trading at power exchanges under the Electricity (Late Payment Surcharge and related matters), Rules 2022 notified by the power ministry in June 2022.
Last month, the national grid operator Power System Operation Corporation Ltd (POSOCO) asked three power exchanges — IEX, PXIL and HPX — to restrict electricity trading by 27 discoms in 13 states having outstanding dues towards gencos.
The latest update regarding late payment surcharge dues on PRAAPTI portal showed that three discoms in Karnataka and one in Jammu & Kashmir have total outstanding dues of Rs 713.29 crore on September 16, 2022. The outstanding dues were Rs 5,085.30 crore on August 17, 2022.
The PRAAPTI stands for Payment Ratification And Analysis in Power Procurement for bringing Transparency in Invoicing of generators.
The three discoms in Karnataka are Hubli Electricity Supply Company Ltd (Rs 36.29 crore), Chamundeshwari Electricity Supply Corporation Ltd (Rs 10.49 crore) and Gulbarga Electricity Supply Company Ltd (Rs 11.24 crore) as per the latest update for September 16, 2022.
Jammu and Kashmir Power Distribution Department owns Rs 655.26 crore as per the latest update on PRAAPTI.
Under the payment security mechanism, state utilities can be barred from trading on electricity exchanges for non-payment of dues and other charges to gencos.
It says, “The supply of power shall only be made if an adequate payment security mechanism is maintained or in the absence thereof, advance payment is made.”
The directive from POSOCO to Indian Energy Exchange (IEX), Power Exchange of India (PXIL) and Hindustan Power Exchange (HPX) was given last month to restrict trading of electricity by utilities of 13 states, including those in Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, Bihar, Chhattisgarh and Jharkhand.
POSOCO, a public sector enterprise under the Union power ministry, manages integrated operation of Indian power system.
In a letter shot off to the three exchanges, POSOCO had said that buy and sell transactions in all products of power market for the discoms (27 discoms in 13 states) shall be entirely restricted till further notice from the delivery (of power) date of August 19, 2022.
The letter had explained that the decision is taken in view of outstanding of these utilities as per the information available on PRAAPTI portal.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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