The real cost of uninterrupted power supply to your homes amid lockdown: Power cos losing this much
As you are getting an uninterrupted electricity supply amid lockdown, the power companies are paying a very heavy price for it. The Covid-19 led lockdown has made a hole of up to Rs 50,000 crore in the power companies’ pockets. This liquidity shortfall would likely worsen the challenging payment position in the sector, where distribution companies already owe Rs 90,000 crore pre-COVID to generators, CII said citing PRAAPTI. India’s daily power demand has declined by 25-28 per cent since the beginning of the nationwide lockdown, mainly due to the factory and office closures in the commercial and industrial (C&I) sectors.
In energy terms, the drop in daily demand is 100 crore units and the extended lockdown would further increase the demand and liquidity compression which has been seen in the preceding three weeks, CII added. The expected cash crunch after the lockdown is lifting is also included in the loss estimation of the power companies. Further, it is also expected that the liquidity gap may also transmit to other players in the value chain, such as conventional and renewable generators, transmission licensees, and other service providers in the power sector, affecting their ability to buy fuel, meet debt service obligations and ensure seamless operations.
