Centre bars 13 states from power exchange over dues

Tags: National Economy/Finance

Power System Operation Corporation (POSOCO), the national grid operator under the Ministry of Power, has barred 12 states and one Union Territory of Jammu and Kashmir from buying/selling electricity due to non-payment of dues.

IMPORTANT FACTS -

• These states include Andhra Pradesh, Tamil Nadu, Telangana, Karnataka, Bihar, Jharkhand, Madhya Pradesh, Maharashtra, Chhattisgarh, Jammu and Kashmir, Rajasthan, Manipur and Mizoram.

• This is the first time that the grid operator has invoked the Electricity (Delay Payment Surcharge and Related Matters) Rules, 2022, to not allow discoms to buy power from alternative short-term sources.

• The total outstanding dues of non-payment discoms is Rs 5,000 crore, of which Telangana has the highest dues of Rs 1,380 crore.

• Under the new Late Payment Surcharge (LPS) rules, it will be implemented from August 19.

• As per the LPS rule, if the discoms do not clear the pending dues to Genco within seven months, their power exchange is suspended.

Power System Operation Corporation (POSOCO) :

• It is a wholly owned Government of India Enterprise under the Ministry of Power, Gov of India.

• Earlier it was a wholly owned subsidiary of Power Grid Corporation of India Limited (POWERGRID).

• It was set up in March 2009 to handle the power management functions of PGCIL.

• It is responsible for ensuring the integrated operation of the grid in a reliable, efficient and safe manner.

• It consists of 5 Regional Load Despatch Centers and one National Load Despatch Center (NLDC).