Mumbai: The Union Ministry of Power on Saturday announced a major package for the power sector to ensure 24×7 electricity supply during the nationwide lockdown. The package includes reduction in payment security by 50%. The ministry has issued directions to Central Electricity Regulatory Commission(CERC) to provide three months' moratorium on distribution companies (Discoms) to make payment to generation companies (Gencos) and transmission companies. This also includes no penalty on late payment. The state governments were requested to issue similar directions to state electricity regulatory commissions (SERCs).
In a serious bid to ease the liquidity problems of the Discoms, the 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. Due to the ongoing emergency, there will be no curtailment of supply to any DISCOM. Further, till May, 31st 2020 the payment security mechanism to be maintained by the distribution companies with the generating companies for dispatch of power, would be reduced by fifty percent.
The ministry has issued directions 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.
Union Minister of Power RK Singh, who released the package, said that in this time of crisis the ministry is committed to provide 24×7 supply of electricity to all consumers. ‘’Despite the lockdown imposed to contain the spread of the COVID 19 pandemic, the whole workforce of the power sector namely generation, transmission, distribution and system operations is working round the clock to keep all homes and establishments lighted,’’ he noted.
Around 70% of power generation is from coal based thermal 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.
Singh admitted that because of the lockdown, consumers are unable to pay their dues to the Discoms. ‘’This has affected the liquidity position of the Discoms thereby impairing their ability to pay to the generating and transmission companies,’’ he viewed.
Meanwhile, Minister of Coal Pralhad Joshi said that coal supplies are declared as essential service so that power and other critical sectors are unaffected due to the nationwide lockdown. Coal stocks at power plants stand at 41.6 million tonnes equivalent to 24 days consumption as of March 26.
