The defaulting state discoms cumulatively owe Rs 5,000 crore to gencos, the highest being in Telangana with Rs 1,380 crore.
As many as 12 states and a Union Territory are staring at major power cuts after being barred from buying/selling electricity at the spot market as a penalty for not clearing their dues to generators.
The states debarred by Power System Operation Cooperation (POSOCO), the national grid operator under the power ministry, are Andhra Pradesh, Tamil Nadu, Telangana, Karnataka, Bihar, Jharkhand, Madhya Pradesh, Maharashtra, Chhattisgarh, Jammu and Kashmir, Rajasthan, Manipur, and Mizoram.
The defaulting state discoms cumulatively owe Rs 5,000 crore to gencos, the highest being in Telangana with Rs 1,380 crore.
As per report, POSOCO has asked three power exchanges -- Indian Energy Exchang (IEX), Power Exchange of India (PXI) and Hindustan Power Exchange (HPX) -- to restrict electricity trading by 27 distribution companies to these states having outstanding dues.
The discoms will be unable to purchase additional power from the spot market while supply from their long-term agreements with gencos will continue. Long-term supply too can be regulated if the default continues. The move is likely to make power outages more common in the affected states.
This is the first time the POSOCO invoked the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, to penalise discoms by barring from from buying electricity from alternative short-term sources.
According to the rules laid down in June this year, discoms are liable for late payment surcharge on the outstanding amount within one month of the due date of payment.
The rate of LPS for successive months of default will increase by 0.5 per cent for every month of delay. A further delay in clearing the dues beyond two and a half months of default will attract penalty provisions.
The rules state: “The short-term power supply to the defaulting entity shall be regulated entirely as per the process set in LPS Rules. Continuing default after regulation of short-term power supply, or continuing default in non-payment of the for three and a half months, would result in regulation of long-term access and medium-term access by 10 per cent, with progressive increase of 10 per cent for each month of default.”
This entails a complete ban on buying short-term power from the spot market and thereafter regulating medium- and long-term power supply.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Representational Image")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}