Power ministry pulls spot market plug from 13 states

Express News Service

NEW DELHI: The Union energy ministry on Thursday barred 13 states from shopping for or promoting electrical energy from the spot marketplace for not clearing dues of Rs 5,085 crore to energy mills.

This is the primary time the Power System Operation Corporation (POSOCO), a physique of the facility ministry, invoked the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 to bar discoms from different short-term sources.

Power distribution firms (discoms) of 4 states within the south Andhra Pradesh, Tamil Nadu, Telangana and Karnataka are amongst these on the ban record. The Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, which was notified this June mandates discoms to pay a late cost surcharge (LPS) on the excellent quantity after the due date of cost.

ALSO READ | Tiny industries might die if energy tariff is hiked: Protesters inform TANGEDCO

The charge of late cost surcharge for the successive months of default will improve by 0.5 per cent for each month of delay, supplied the late cost surcharge won’t be greater than 3 per cent larger than the bottom charge at any time. Any additional delay would invoke penalty provisions, together with a whole ban on shopping for short-term energy from the spot market and thereafter regulation of medium-term and long-term energy provide. However, energy specialists known as the motion of POSOCO one-sided.

The chairman of All India Power Engineers Federation Shailendra Dubey mentioned Posoco is implementing provisions of the Electricity (Amendment) Bill 2022, which has been referred to the Standing Committee and couldn’t be handed within the Lok Sabha.

ALSO READ | Special groups to examine energy infra in villages, submit report in every week

“State governments owe Rs 76,000 crore on account of subsidy and Rs 67,000 crore on account of the government departments’ electricity dues. If this Rs 1,43,000 crore is paid by respective state governments to discoms, then discoms will pay dues of gencos,” mentioned Dubey.

NEW DELHI: The Union energy ministry on Thursday barred 13 states from shopping for or promoting electrical energy from the spot marketplace for not clearing dues of Rs 5,085 crore to energy mills.

This is the primary time the Power System Operation Corporation (POSOCO), a physique of the facility ministry, invoked the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 to bar discoms from different short-term sources.

Power distribution firms (discoms) of 4 states within the south Andhra Pradesh, Tamil Nadu, Telangana and Karnataka are amongst these on the ban record. The Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, which was notified this June mandates discoms to pay a late cost surcharge (LPS) on the excellent quantity after the due date of cost.

ALSO READ | Tiny industries might die if energy tariff is hiked: Protesters inform TANGEDCO

The charge of late cost surcharge for the successive months of default will improve by 0.5 per cent for each month of delay, supplied the late cost surcharge won’t be greater than 3 per cent larger than the bottom charge at any time. Any additional delay would invoke penalty provisions, together with a whole ban on shopping for short-term energy from the spot market and thereafter regulation of medium-term and long-term energy provide. However, energy specialists known as the motion of POSOCO one-sided.

The chairman of All India Power Engineers Federation Shailendra Dubey mentioned Posoco is implementing provisions of the Electricity (Amendment) Bill 2022, which has been referred to the Standing Committee and couldn’t be handed within the Lok Sabha.

ALSO READ | Special groups to examine energy infra in villages, submit report in every week

“State governments owe Rs 76,000 crore on account of subsidy and Rs 67,000 crore on account of the government departments’ electricity dues. If this Rs 1,43,000 crore is paid by respective state governments to discoms, then discoms will pay dues of gencos,” mentioned Dubey.