India for the first time may allow electricity generation companies to call bids from state distribution companies to sell power. The move is aimed at introducing market-based price discovery for electricity and curbing nontransparent bilateral ties between states and power plants that are not recognised under the Electricity Act
Peak power demand in Delhi this summer is expected to breach the 7,400 MW-mark and the two BSES distribution companies (discoms) in the capital have taken measures like long-term power purchase agreements (PPAs) and banking arrangements with various states, the BSES said on Friday.
Inadequate revision of rates alongwith delay in filing tariff petitions are likely to remain an area of concern in the financial year 2020 for distribution companies (Discoms), says a report.
The Cabinet Committee on Economic Affairs said late payment surcharge will be made mandatory for power distribution companies. This is in line with the recommendations of a Group of Ministers (GoM) on issues relating to stressed thermal power projects.
In a meeting of the power producers last week, the key issues discussed were the nonpayment by discoms as well as the coal shortage. CNBC-TV18 spoke with Ashok Khurana, director-general of Association of Power Producer
Also, higher costs, execution challenges, cancellation of tenders due to unrealistic tariff expectations by discoms made matters worse, Bridge To India said in a report.
Shortage of coal at power plants, inadequate tariff hikes and rising operational costs after the 7th Pay Commission have been putting additional pressure on already hard-pressed electricity distribution companies (discoms).
The government has constituted a committee under the Central Electricity Authority (CEA) to explore prepaid payments by state electricity distribution companies to power plants, a government official said.
Organised theft of power in Delhi for charging of e-rickshaws has assumed serious proportions with discom sources putting the annual losses due to it at nearly Rs 150 crore. There are three power distribution companie
With the chances of meeting the UDAY target to limit the aggregate technical and commercial (AT&C) losses of electricity distribution companies (discoms) to under 15% by FY19-end virtually nil, the government has cited factors such as inadequate hikes in power tariffs,