Center bars 13 states from dues power swap | Latest India News
The Center on Thursday banned 27 distribution companies (discoms) from 13 states from buying or selling electricity on power exchanges, citing their non-payment of dues to the generation companies (gencos). Affected states said the move could lead to power outages, though some immediately began settling their outstandings to avoid a power crisis. The restriction came into effect on Thursday evening and electricity delivery will be interrupted from Friday.
A power exchange is an electronic platform where electricity is bought and sold by distribution companies to determine the fair market price and the best consumer/seller. It ensures market transparency and also helps utilities procure electricity to meet peak demand.
State-owned Power System Operation Corporation (POSOCO) Limited, which operates the national grid, issued the directive to India’s three power exchanges, Indian Energy Exchange (IEX), Power Exchange of India (PXIL) and Hindustan Power Exchange. (HPX), asking them to restrict power trading by discoms in 13 states. He also conveyed the same to the 13 failed states, Madhya Pradesh (which must ₹229.11 crore), Telangana ( ₹1,380.96 crore), Rajasthan ( ₹500.66 crore), Maharashtra ( ₹381.66 crore), Karnataka ( ₹355.20 cr), Andhra Pradesh ( ₹412.69 cr), Tamil Nadu ( ₹926.16 cr), Jharkhand ( ₹214.47 cr), Bihar ( ₹173.50 cr), Chhattisgarh ( ₹27.49 cr), Jammu and Kashmir ( ₹434.81 cr), Manipur ( ₹29.94 cr) and Mizoram ( ₹17.23 cr).
“These 27 nightclubs will be fully restricted until further notice from the (power) delivery date of August 19, 2022 (Friday). The action appears to be taken under the Electricity (Late Payment Surcharge and Related Matters) Rules 2022, notified by the Department of Energy in June this year. LPS rules prohibit discoms from power exchanges if they fail to pay pending dues to gencos for more than seven months,” a senior Department of Energy official said on condition of anonymity.
The official added that this is the first time that such a high number of discoms have been banned from trading in power exchanges due to non-payment of dues. Previously, such restrictions had been imposed on a few electric utilities, but they were also lifted almost immediately.
A POSOCO official said that as soon as the letters were sent to the states, some governments asked for an extension of trading time in the exchanges, so they could pay dues and then buy power. “As a result, trading on power exchanges was extended for approximately two hours on Thursday, although a few states were unable to participate in the day’s trading in advance,” the official said, under cover of a statement. ‘anonymity.
Some states rushed to pay their dues to avoid a crisis. Madhya Pradesh Principal (Power) Secretary Sanjay Dubey said the state government was working to resolve the issue. “Talks are ongoing. We have already started the dues payment process.
Chairman and Managing Director of Telangana State Electricity Transmission Company Devulapalli Prabhakar Rao told HT that the state has responded to the mail sent by the Union Ministry of Energy to Telangana and to other states regarding the restriction. “We told them that all payments shown in the PRAAPTI (Payment Ratification And Analysis in Power Procurement for Bringing Transparency in Invoicing of Generators) portal have been made. Telangana High Court, acting on a writ petition filed by the government of Telangana, had issued an order on April 25, 2022, allowing the Telangana Electricity Distribution Companies (Discoms) and the Telangana State Electricity Coordinating Committee (TSPCC) to operate through the stock exchange. electricity as well as secure power through unimpeded open access pending the removal of the petition, we have therefore requested the Union Department of Energy not to take any further action preventing services Telangana power utilities to tap or sell power through exchange,” Rao said.
A senior Andhra Pradesh energy department official said discoms in the state had recently signed up to the LPS scheme, under which all power generator dues until 2022 would be paid in 12 instalments. monthly equivalents over the next year. “AP nightclubs have already paid the first installment of ₹1422 crore to generators on August 6, 2022. Perhaps the payment was not updated on the records and therefore they may have issued the notice. It will be clarified in the next 24 hours.
A senior Rajasthan official, Urja Nigam, said: “The sudden notification is not acceptable and talks are ongoing to resolve the issue. A sum of approximately ₹500 crore are outstanding, part of which is admissible and the rest is disputed. They should have given notice. Now that there will be a three-day holiday, how will it be possible to settle the outstanding amount? But Rajasthan will have a surplus of wind power for the next two days, so we will be able to manage until the problem is solved.
(with contributions from the Rajasthan, Telangana and Madhya Pradesh offices)