States clearing electricity utility dues: Centre

With many states' electricity distribution companies ('discoms') clearing their debts to electricity generating and transmission companies, outstanding 'discom' debts to power utilities have come down by Rs 29,857 crore to Rs 1,08,092 crore, which were Rs 1,37,949 crore on June 3, 2022, the Centre said on Tuesday.

Power Minister R K Singh provided the information on 'discoms' in a written reply to Rajya Sabha on Tuesday.

The minister also said there is no proposal for the privatisation of any existing State-owned distribution licensee, and they shall continue to function as earlier.

Also Read — All-India electricity demand may grow 7% to 1,480 BU in FY23: Icra

About fears of the impact of the Electricity Amendment Bill 2022 on the poor, the minister said that the provision of multiple licensees already exists in the present Electricity Act 2003, and no new concept has been introduced.

With the implementation of Electricity Rules (late payment surcharge) 2022, a remarkable improvement has been seen in the recovery of outstanding dues of Suppliers, including Generating Companies, Transmission Companies and Traders," the minister said.

To avoid regulations under the rule, distribution companies are also paying their current dues on time, and they have paid almost Rs 1,68,000 crore of current dues in the last five months, he stated.

Based on the results achieved so far, it is expected that strict implementation of the LPS (late payment surcharge) Rules will bring back the financial viability of the power sector in the country and would attract investment to ensure reliable 24x7 electricity to the consumers, he said.