Power System Operation (POSOCO), the Corporation national grid operator under the power ministry, has debarred 12 states and a Union Territory (UT) from buying/selling electricity at the spot market as a penalty for not clearing their dues to generators. Among them are power distribution companies (discoms) in Andhra Pradesh, Tamil Nadu, Telangana, Karnataka, Bihar, Jharkhand, Madhya Pradesh, Maharashtra, Chhattisgarh, Jammu and Kashmir, Rajasthan, Manipur, and Mizoram.
The defaulting discoms cumulatively owe ₹5,000 crore to gencos, the highest being in Telangana with ₹1,380 crore.
This is the first time the grid operator has invoked the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, to penalise discoms by disallowing them to buy electricity from alternative short-term sources.
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.
This story is from the August 19, 2022 edition of Business Standard.
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This story is from the August 19, 2022 edition of Business Standard.
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