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After the Power System Operation Corporation (POSOCO) restricted 27 Discoms across 13 States from buying electricity via power exchanges, so far, 16 distribution entities across 7 States have cleared dues of ₹3,712.64 crore under the Late Payment Surcharge (LPS) rules.
As per data compiled by the PRAAPTI portal, as on August 19, the total dues outstanding for 11 Discoms across six States was ₹1,4372.66 crore. The list includes Discoms with an outstanding amount of more than ₹1 crore. As on August 17, the total dues of 27 Discoms in 13 States was ₹5,085.30 crore.
Clearing dues
Sources said that the Telangana government has cleared its dues of ₹52.85 crore concerning three State Discoms. The State does not have any outstanding as of August 20. A couple of States will be clearing their LPS dues on Saturday, while some may do it on Monday.
Meanwhile, Karnataka has also informed that it will clear dues of two of its Discoms amounting to ₹223.14 crore, a senior government official said.
The highest outstanding is with Jammu & Kashmir (J&K), which has dues to the tune of ₹467.06 crore, followed by Rajasthan with 4 Discoms (₹341.60 crore), Madhya Pradesh with 1 Discom (₹240.93 crore) and Karnataka.
Posoco, which is under the charge of the union Power Ministry, took action under the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, to bar Discoms from procuring power from exchanges.
Under the rules, Discoms have to pay LPS on the outstanding amount post the due date at the base rate, which will be applicable for the first month of default.
The rate of LPS for successive months of default will increase at 0.5 per cent monthly, with a maximum cap of not more than 3 per cent higher than the base rate. The LPS also should not be more than the rate of LPS specified in the agreement between the parties.
The Discom payments will first go towards meeting the LPS dues and then to paying up the monthly charges, beginning with the longest overdue bills.
In a flurry of activity on Friday, the State governments of Tamil Nadu and Andhra Pradesh announced that they would be paying up their LPS dues to be allowed to purchase electricity from power exchanges. Tamil Nadu still has an outstanding of ₹73.53 crore , while Andhra Pradesh has cleared its dues.
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