Accumulated dues: Power exchanges told not to allow trading by 27 discoms

In a significant development, Power System Operation Corporation (POSOCO) on Thursday directed three power exchanges in the country to ban 27 discoms in 13 states from trading on their platforms for non-payment of dues.

Posoco, for the first time, in a letter to the Indian Energy Exchange (IEX), Power Exchange India Limited (PXIL) and Hindustan Power Exchange (HPX) has said that all products in the power market will have buy-sell transactions for discoms. The power distribution date of 19th August is completely restricted till further notice. The action is likely to be taken under the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, notified in June. The total dues are around ₹5,085 crore, of which Telangana, Tamil Nadu, Rajasthan, Jammu and Kashmir, Andhra Pradesh, Maharashtra and Karnataka account for ₹4,761 crore.

States like Telangana will challenge the action in court, while some are working to clear the dues. Sources said Andhra Pradesh has already announced a scheme to pay in 12 instalments.

Nangia Andersen Leader (Power Advisory) Arindam Ghosh said that it is definitely a good move, but it can be implemented only if it is properly planned. “POSOCO should have foreseen the implications of a sudden shutdown of utilities. For the first time in the history of power exchanges, the Day-Ahead-Market (DAM) was extended by two hours so that these utilities could trade. This caused a disruption in the power system. Such actions can lead to major imbalances in the power market, jeopardizing the power portfolio management of the discoms. There is no point in imposing such restrictions if they have to surrender to the pressure of the discoms There is a need for more planning and stakeholder consultation before taking such sudden action,” he said.

state of affairs

Telangana Power Utility has said that it is going to take contempt proceedings in the High Court. “The High Court of Telangana has issued order in April, allowing Telangana Discoms and Telangana State Power Coordination Committee (TSPCC) to conduct safe electricity through open access without any hindrance along with power exchanges The disposal of our writ petition is pending. A top utility official said.

“We request you not to take any further action prohibiting Telangana utilities from drawing or selling electricity through the exchange,” the utility asked the Center in response to the move.

A senior official from another state said that the electricity traded on these exchanges is around 6-7 per cent of the total. “Won’t have much effect. Also, there is no need for peak demand. But states with high dues should do away with their delayed payment surcharge (LPSC) as with the festive season approaching, the demand for electricity will increase,” he said.

Citing electricity demand data from the National Load Despatch Center, the IEX said that during July 2022, the energy consumption of 128 billion units (BU) saw an annual growth of 2.3 per cent, compared to a decline of 4 per cent in June. done. The national peak demand of 190 GW was 5 per cent lower on a year-on-year basis and 10 per cent lower on a mom basis on the back of a good monsoon. Due to sluggish demand, the clearing price in DAM declined to ₹5.41 per unit in July from ₹6.49 per unit in June.

Published on

18 August 2022

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https://www.thehindubusinessline.com/companies/accumulated-dues-power-exchanges-told-to-stop-27-discoms-from-trading/article65784384.ece

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