No curtailment of electricity to any DISCOM with huge outstanding: Centre

In view of COVID-19 outbreak, the central government on Saturday asked all CPSU companies to continue supplying electricity even to DISCOMs which have large outstanding dues.

New Delhi: In view of the 21 days nationwide lockdown, Union Power Ministry has asked Central Public Sector Undertakings (CPSU) generation as well as transmission companies to continue supply of electricity even to DISCOMs which have large outstanding dues to the transmission companies.

In India's fight against COVID-19 pandemic, Union Power Ministry took major decision to give relief to the DISCOMs.

"Power Minister R K Singh approved major relief measure for power sector with an aim to ensure 24×7 electricity supply during lockdown. Directions have been issued to Central Electricity Regulatory Commission (CERC) to provide three months moratorium on DISCOMs to make payments to Gencos and transmission and no penalty on late payment," said a senior official in the power ministry.

Reportedly, due to the lockdown, consumers are unable to pay their dues to the Distribution Comapnies (DISCOMs). This has affected the liquidity position of the DISCOMs thereby impairing their ability to pay to the generating and transmission companies.

Power Minister RK Singh following a high level meeting with all the stakeholders on Friday evening decided the following -- CPSU generation and transmission companies will continue supply and transmission of electricity even to DISCOMs which have large outstanding dues to the generation and transmission companies.

During the present emergency there will be no curtailment of supply to any DISCOMs; Till June 30, the payment security mechanism is to be maintained by the distribution companies with the generating companies for dispatch of power shall be reduced by 50 percent.

Officials said that, directions have been issued to the CERC to provide a moratorium of three months to DISCOMs to make payments to generating companies and transmission licenses and not to levy penal rates of late payment surcharge.

"State governments are also being requested to issue similar directions to the State Electricity Regulatory Commission (SERC)," officials said.

As per records, the total outstanding dues on DISCOMs stood at Rs 82,414 crore. DISCOMs in Rajasthan, Uttar Pradesh, J&K, Telangana, Andhra Pradesh, Karnataka and Tamil Nadu account for the major portion of dues to power Gencos.