Greater payment security net for gencos to ensure 24×7 power supply
A greater payment security mechanism for power generation companies to ensure timely payouts for supply of electricity will be in focus in 2022 as stricter rules are on the anvil for 24×7 power supply amid discoms’ outstanding dues at a whopping Rs 1.56 lakh crore.
Mounting outstanding dues of distribution companies (discoms) to electricity generation companies (gencos) have been a perennial issue affecting the entire value chain in the power sector and are also a hindrance for the ambitious goal of 24×7 power supply across the country even when the payment for coal is made in advance.
The situation persists despite the fact that discoms’ dues become overdue after 45 days of generating bills and they also have to pay penal interest on the overdue amount in most of the cases to gencos.
