Energy Minister of Karnataka, South India, V.Sunil Kumar claimed on Friday, August 19, 2022 that the state government will soon wipe off all its dues amounting to ₹355 crore to the power stations demarcated after the Union Power Department barred nearly 27 DISCOMS from across 13 states from buying or selling power in the financial spot market for failing to clear dues of around 5,085 crore ₹ to major electricity generations across India.

Speaking to the media, the Minister claimed that “the pending dues were a ‘routine matter’ and the ministry would settle them within a few days”.

Meanwhile, the Andhra Pradesh state government clarified on Friday that it had already paid the dues and therefore the recent orders granted by the central government do not apply to the state.

“The State has paid all its rights on the electricity purchased on the electricity exchange. He said the state distribution companies (DISCOMS) paid the dues of Rs 350 crore. “The restriction will not apply to Andhra Pradesh. The state was included in the list due to a lack of communication,” said the Department of Energy’s Special Chief Secretary K Vijayanand.

The notification claimed that the state of Andhra Pradesh owed nearly ₹412.69 crore in dues.

The Power System Operation Corporation (POSOCO) Limited, a central public sector enterprise under the jurisdiction of the Ministry of Energy, Government of India, invoked the Electricity (Late Payment Surcharge and Related Matters) Rules 2022, prohibiting electricity distribution companies (DISCOMS) from – term sources – commercial credit; loans from commercial banks; commercial paper, a special type of promissory note and secured loans.

Currently, DISCOMS from four of the South Indian states – Andhra Pradesh, Tamil Nadu, Telangana and Karnataka – are present in the list.

In addition, POSOCO issued orders to the country’s three power exchanges, Indian Energy Exchange (IEX), Power Exchange of India (PXIL) and Hindustan Power Exchange (HPX), asking them to restrict power trading by DISCOMS across 13 states of India.

The rules specified under Electricity (Late Payment Surcharge and Related Matters), 2022 are generally the charges payable by a DISCOM to a GENCO or electricity concessionaire for the supply of electricity.

In its recent notification of June 2022, DISCOMS was asked to pay a late payment charge (LPS) on the amount remaining due after the due date.

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