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Business News/ Industry / Energy/  Power discoms' condition ‘grave concern’; owe gencos 1.56 lakh cr: Govt
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Power discoms' condition ‘grave concern’; owe gencos ₹1.56 lakh cr: Govt

Power Minister RK Singh says DISCOMs' AT&C losses at the end of 2019-20 range from an average of 21 per cent-60.16 per cent.

Power Minister RK SinghPremium
Power Minister RK Singh

DISCOMs have not been able to pay the generation companies for the power procured, and the outstanding payments to them are estimated to be in excess of 1,56,000 crore, Power Minister RK Singh said in a written reply to the Lok Sabha today.

Terming the condition of most state government-owned distribution companies a matter of "grave concern", Singh said their AT&C losses at the end of 2019-20 range from an average of 21 per cent-60.16 per cent.

"The gap between Average Cost of Supply (ACS) and Average Revenue Realised (ARR) excluding Regulatory Assets and Ujwal DISCOM Assurance Yojana (UDAY) grants averages 60 paise per Unit in 2019-20 and the Accumulated losses of all DISCOMs in the country by 2019-20 have risen to 5,07,416 crore," the minister said.

He said the outstanding dues to renewable generators are around 11 months of revenues. "Therefore, reforms have been deliberated upon in consultation with the states and all stakeholders. No final decisions have been arrived at so far," he said.

As per the Electricity Act, 2003, the tariff is determined by the State Electricity Regulatory Commissions. The Central Electricity Regulatory Commission (CERC) determines the tariff of only inter-state projects. CERC adopts the tariff of competitively bid projects under section 63 of the Electricity Act, 2003. The discovered tariffs are different for different bids.

In another reply to the House, the minister said a total of 4,21,384 smart pre-paid electricity metres have been installed till December 9, 2021, while the number of smart electricity metres are 32,86,263.

Under the Revamped Distribution Sector Scheme (RDSS) launched by the Government of India on July 20, 2021, provisions have been made to install 25 crore pre-paid smart meters across the country.

With PTI inputs

Also read: Tata Power to set up 300 MW hybrid (wind & solar) project for MSEDCL

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Updated: 16 Dec 2021, 05:33 PM IST
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