Union Power Minister Insured 24*7 Electricity Supply And No Penalty For Late Payment

The coronvirus lockdown has left Indians in frenzy. Due to the lockdown, consumers are unable to pay their dues to the Distribution Companies (Discoms). To resolve this issue, union Minister of Power RK Singh said that in this time of crisis the Ministry of Power is committed to provide 24x7 supply of electricity to all consumers.

The inability to pay power bills on time has affected the liquidity position of the Discoms thereby impairing their ability to pay to the generating and transmission companies. In this context, Singh has approved significant relief measures for power sector ..

The power ministry has taken following decisions to ease the liquidity problems of the Discoms –

a. Central Power Sector Undertaking Generation / Transmission Companies will continue supply/ transmission of electricity even to Discoms which have large outstanding dues to the Generation / Transmission companies. During the present emergency there will be no curtailment of supply to any DISCOM.

b. Till May 31, 2020 the payment security mechanism to be maintained by the Distribution Companies with the Generating Companies for dispatch of power shall be reduced by fifty percent.

c. Directions have been issued to the Central Electricity Regulatory Commission to provide a moratorium of three months to Discoms to make payments to generating companies and transmission licensees and not to levy penal rates of late payment surcharge. State Governments are being requested to issue similar directions to State Electricity Regulatory Commissions.

Around 70 per cent of power generation is from coal based power plants. In order to maintain the continuity of supply of coal by domestic coal companies and transportation by railways, the ministry is in touch with the Ministries of Railways and Coal.