Coronavirus: Major relief measures announced for power sector

With the Coronavirus outbreak further deteriorating the financial position of power distribution companies, the government has announced a slew of relief measures to keep them afloat — cut in payment security, three months moratorium on payments to gencos and no curtailment of supply to them.

Due to the lockdown, consumers are unable to pay their dues to the discoms and this has affected the liquidity position of the discoms impairing their ability to pay to the generating and transmission companies.

“CPSU generation and transmission companies will continue supply or transmission of electricity even to discoms which have large outstanding dues to the generation and transmission companies. During the present emergency there will be no curtailment of supply to any DISCOM,” the power ministry said in a statement.

It added that till 30 June 2020 the payment security mechanism to be maintained by the distribution companies with the generating companies for dispatch of power will be reduced by fifty percent.

Also, the centre has issued directions to the Central Electricity Regulatory Commission (CERC) 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.

“The state governments are being requested to issue similar directions to State Electricity Regulatory Commissions,” the statement said.

ET energy world
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