Power Ministry relaxes Discom payment security mechanism as lockdown hampers bill collection

The Ministry of Power has relaxed the payment security mechanism to be ensured by power distribution companies (Discoms). This has been done to give support to Discoms that are finding it difficult to collect payments for bills raised on consumers in light of the coronavirus lockdown.

“Many consumers of the Discoms are unable to pay their dues. This has critically affected the liquidity position of the Discoms thereby impairing their ability to make timely payments to generating and transmission companies and maintaining letter of credit,” an order from the Ministry of Power said.