Power crisis may arise in 13 states, huge dues of companies
Non-payment of huge dues could lead to power crisis in 13 states. State-owned Power System Operation Corporation Limited (POSOCO) has asked three power exchanges, Indian Energy Exchange, Power Exchange of India and Hindustan Power Exchange, to ban power trading of 27 power distribution companies in 13 states.
These distribution companies have huge dues from the power generating companies. These states include Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, Bihar, Chhattisgarh and Jharkhand.
POSOCO under the Ministry of Power manages the integrated operation of the power system in the country. In a letter to all the three power markets, it said, “buy-sell/delivery of all electricity market products to 27 distribution companies in 13 states will be strictly prohibited with effect from August 19, 2022 till further notice.”
Under the payment security system, public sector power distribution companies can be banned from trading in the electricity market for non-payment of dues to the generating companies. Under this, electricity will be supplied only if adequate payment security system is maintained or in the absence of which advance payment is made.
