With election over, so are the freebies. Before the polls, power discoms in MP had sought a power tariff hike of only 1.59% and now, two months down the line, the same discoms are asking for a whopping 12% hike. So brace for a steep hike in energy bills.
Power gencos outstanding dues on discoms jumps 63% to nearly Rs 39,000 cr in March; sector’s stress mounts
The outstanding dues of power producers on distribution utilities soared by 63 percent to Rs 38,696 crore in March 2019 as compared to the same month year ago, reflecting stress in the sector.
With state-run electricity distribution companies (discoms) missing key targets of the UDAY scheme, the government is looking at options to “insulate” these entities from the risk of delayed payments from bulk consumers such as local bodies and state government departments.
The Rajasthan Electricity Regulatory Commission (RERC) has dismissed petitions filed by captive solar project developers seeking relief from applicable wheeling and banking charges.
Recently, the Bihar State Power Holding Company Ltd. (BSPHCL) wrote to the state’s electricity commission BERC seeking its approval to carry forward the shortfall in the renewable purchase obligations (RPO) for the financial year 2018-19 to the next year.
The power ministry’s second auction for procuring 2.5 GW of thermal power in medium term at a higher tariff of Rs 4.41 per unit compared to Rs 4.24 per unit in the first round is positive for power producers, but signing of sale agreements with discoms remains crucial, ICRA said on Thursday.
Reduced power demand has been an issue for some time in India and it has been blamed largely on financially challenged DISCOMs (utility companies). One of the most overlooked reasons is energy efficiency.
Gujarat’s discom model for power should be duplicated across India, says ex-coal secretary Anil Swarup
Anil Swarup, a former secretary in the Ministry of Coal, Harry Dhaul, director general of Independent Power Producers Association of India (IPPAI) and Dr. Pramod Deo, former chairperson of CERC discussed the prospects of the power sector.
The importance of the flow of capital into the power and housing sectors in India cannot be overemphasised. Recent developments in both sectors once again bring to the fore the critical issues of effective payment mechanisms and price transparency as vital factors to boost the economy.
As much as ₹3 trillion of investment in a dozen private power plants is at risk of turning into NPA as state discoms buying power have not been making payment for months, official data and sources said.