NEW DELHI : Energy System Operation Company (POSOCO) has barred energy distribution firms of 13 states from shopping for and promoting energy on the exchanges beginning 19 August, because of delay of their excellent dues to technology firms (GENCO).
The states the place discoms have been barred from buying and selling energy on the exchanges are Chhattisgarh, Maharashtra, Madhya Pradesh, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, Jammu and Kashmir, Rajasthan, Bihar, Jharkhand, Manipur and Mizoram.
In a letter to the ability exchanges seen by Mint, POSOCO outlined the names of the states and their respective discoms and stated: “As per data acquired from PRAAPTI portal relating to excellent of funds, the purchase and promote transactions in all merchandise of energy marketplace for the next discoms shall be solely restricted until additional discover from the supply date of 19.08.2022.”
The overall dues of those discoms quantity to ₹5,000 crore with discoms in Telangana owing the best quantity of ₹1,380 crore.
The event follows the introduction of the Electrical energy (Late Cost Surcharge and Associated Issues) Guidelines, 2022, which have been introduced in June.
As per the principles, in case of non-payment of dues, by the distribution licensee or different person of transmission system, even after two and half months from presentation of invoice by the producing firm or transmission licensee or buying and selling licensee, or in case of default within the cost of instalments, “short-term entry, on the market and buy of electrical energy together with within the energy change shall be regulated solely”.
“On cost of excellent dues, the regulation of entry beneath this rule shall finish and it shall be restored on the earliest, however not later than two days,” stated the gazette notification on the principles.
On 16 Could, Mint reported that energy technology firms (gencos) have began regulating energy provide to distribution firms (discoms) which have deferred paying their month-to-month dues, with provides to these in Meghalaya and Sikkim minimize by 1 / 4. The newest replace on Praapti web site confirmed that discoms in each the state have cleared their dues.
Below the brand new ‘late cost surcharge’ (LPS) guidelines, in case a discom doesn’t pay the excellent dues two-and-a-half months after the technology of the invoice, the genco will provide solely 75% of the contracted energy to the distribution licencee. The remaining 25% could also be offered by the genco by way of energy exchanges.
Commenting on the newest transfer by POSOCO, Arindam Ghosh, Chief, Energy Advisory, Nangia Andersen LLP stated: “That is positively an excellent transfer, however enforcement can solely be completed whether it is correctly deliberate. POSOCO ought to have anticipated the implication of abruptly barring the utilities.”
The federal government has accelerated its push for state discoms to pay dues to gencos which quantity to round ₹1.5 trillion. On 30 July, Prime Minister Narendra Modi urged states to clear their dues to energy technology firms to assist guarantee corporations‘ operational viability which in flip would assist them meet the nation’s power demand. Whole dues within the nation’s energy sector together with to gencos and discoms quantity to ₹2.5 trillion.
On 5 August, Mint reported that state-run Energy Finance Corp. Ltd PFC) and its subsidiary, REC Ltd, are anticipated to lend as much as ₹1.45 trillion in whole to state-run discoms beneath the Union authorities’s formidable one-time settlement scheme.
Queries despatched to POSOCO, ministry of energy, Indian Power Change and Hindustan Energy Change remained unanswered until press time.
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Supply: Live Mint