NEW DELHI : States are falling in line after the Centre cracked the whip on energy cost delays, with distribution corporations besides in Jammu and Kashmir and Karnataka clearing month-to-month dues over the previous two weeks.
The central authorities not too long ago requested energy exchanges to cease buying and selling by errant discoms and scale back provide to them by 25% below the late cost surcharge guidelines if dues weren’t paid after two-and-a-half months of invoice era.
On 18 August, the Energy System Operation Corp. (POSOCO) barred 27 discoms throughout 13 states from shopping for and promoting energy on the exchanges from 19 August, citing a delay in paying dues.
Madhya Pradesh, Rajasthan, Mizoram and Tamil Nadu are amongst giant states the place discoms have paid the dues since then, exhibits information on the ability ministry’s Praapti portal.
The Jammu and Kashmir Energy Distribution Co. and Hubli Electrical energy Provide Co. Ltd in Karnataka are but to clear dues of ₹613.83 crore and ₹156.24 crore, respectively.
The 13 states the place discoms had been barred from the ability exchanges included Chhattisgarh, Maharashtra, Madhya Pradesh, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, Jammu and Kashmir, Rajasthan, Bihar, Jharkhand, Manipur and Mizoram.
Whole dues of those discoms on the day they had been barred had been about ₹5,000 crore, with discoms in Telangana owing the best quantity of ₹1,380 crore.
“Energy provide to a number of states was regulated, and a number of other had been barred from buying and selling within the exchanges. Now, a lot of them have cleared their common dues,” an official acquainted with the matter mentioned on the situation of anonymity.
Queries despatched to the ministry of energy remained unanswered until press time.
The event follows the introduction of the Electrical energy (Late Cost Surcharge and Associated Issues) Guidelines, 2022, in June.
In accordance with the foundations, non-payment of dues by the distribution licensee or different person of the transmission system even after two-and-a-half months from the invoice presentation 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 below this rule shall finish, and it shall be restored on the earliest, however not later than two days,” mentioned the gazette notification on the foundations.
On 16 August, Mint reported that energy era corporations have began regulating energy provide to discoms, which have deferred paying their month-to-month dues, with provides to these in Meghalaya and Sikkim reduce by 1 / 4.
The newest replace on the Praapti web site confirmed that discoms in each states cleared their dues.
The official cited above, nevertheless, mentioned that distribution corporations have paid the month-to-month dues, however the legacy dues piled up over time stay.
Out of the legacy dues, discoms are anticipated to pay ₹4,000-5,000 crore by 5 September, he added.
Earlier this month, the state-run Rural Electrification Corp. supplied monetary help of roughly ₹22,000 crore for clearing the excellent dues by the distribution licensees of Jharkhand, Rajasthan, Chhattisgarh and Jammu and Kashmir.
Obtain The Mint Information App to get Each day Market Updates.
Extra
Much less
Supply: Live Mint