India’s southern state of Karnataka’s Energy Minister V. Sunil Kumar on Friday, August 19, 2022 asserted that the state government would soon clear all of its dues amounting to ₹ 355 crore to the demarcated power stations after the Union Power ministry debarred nearly 27 DISCOMS from across 13 states from buying or selling electricity from the financial spot market for not clearing dues of approximately ₹ 5,085 crore to major power generations across India.
While speaking to the media, the minister asserted, “the pending dues were a ‘routine matter’ and the department would clear them in a few days.”
Meanwhile, the state government of Andhra Pradesh on Friday, clarified that it has already paid the dues and thus, the recent orders accorded by the Central government do not apply to the state.
“The state has cleared all its dues towards electricity purchased from the power exchange. He said the distribution companies (DISCOMS) of the state have paid the dues of Rs 350 crore. “The restriction will not apply to Andhra Pradesh. The state was included in the list due to some communication gap,” the Special Chief Secretary, Energy Department, K Vijayanand said.
The notification claimed that the state of Andhra Pradesh owes nearly ₹ 412.69 crore dues.
The Power System Operation Corporation (POSOCO) Limited, a central public sector enterprise under the jurisdiction of Ministry of Power, Government of India invoked the Electricity (Late Payment Surcharge and Related Matters) Rules 2022, barred power distribution companies (DISCOMS) from alternative short-term sources- trade credit; commercial bank loans; commercial paper, a specific type of promissory note, and secured loans.
Currently, DISCOMS of four of the south Indian states- Andhra Pradesh, Tamil Nadu, Telangana, and Karnataka- are present within the list.
Besides, POSOCO issued orders to the country’s three power exchanges, Indian Energy Exchange (IEX), Power Exchange of India (PXIL) and Hindustan Power Exchange (HPX) asking them to restrict trade of electricity by DISCOMS from across 13 states of India.
The rules specified under the Electricity (Late Payment Surcharge and Related Matters), 2022 are generally those charges payable by a DISCOM to a GENCO or electricity trading licensee for power procurement.
In its recent notification of June, 2022, DISCOMS were asked to pay a late payment surcharge (LPS) on the outstanding amount after the due date.
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