In September, the Ministry of Power came out with a draft Standard Bidding Document (SBD) for privatisation of distribution licensees and sought public comments on it till October 5.
Union finance minister Nirmala Sitharaman in May announced a Rs 90,000 crore liquidity infusion into cash-strapped discoms for payment of their dues till March 2020. Discoms have been facing demand slump due to the lockdown to contain COVID-19.
The Delhi Electricity Regulatory Commission (DERC) announced the new tariff on Friday, saying no hike was considered due to the COVID-19 pandemic.
Urgent steps needed to resolve disputes, enforce contracts and cut delays to charge up renewable energy
Out of the total amount of Rs 17,000 crore billed to distribution companies (discoms) in April, only 11 percent, or Rs 1,800 crore, was paid to generation companies (gencos) and transmission companies (transcos), Emkay Global said in a report.
More than a liquidity lifeline is needed now
The season's previous high was 5,464 MW recorded on May 26, said a BSES spokesperson.
"The introduction of RTM trading would enable efficient price discovery for electricity and support grid balancing activities. This is especially significant in the context of rising share of renewable energy in electricity generation in India," ICRA Group Head & Senior Vice President - Corporate ratings, Sabyasachi Majumdar said.
Finance Nirmala Sitharaman earlier this month announced Rs 90,000 crore liquidity infusion for discoms, saying that they owe Rs 94,000 crore to power generation companies.
Peak demand is just about 12 percent lower than last year compared to as much as 35 percent in the early stages of the lockdown
Unveiling the fourth tranche of the Rs 20 lakh crore stimulus package, the Finance Minister Nirmala Sitharaman on Saturday announced a slew of measures for the power sector
“The package for power sector will significantly reduce the burden of discoms for maintaining distribution of electricity as supplied by gencos/transcos during these difficult times,” Power Minister R K Singh said in the statement.
The reforms on land, labour, and law is still awaited which might be beneficial to drive overall investments in the economy and should have the highest multiplier effect albeit in the medium-term.
Power utilities need long-term concrete measures to become “Aatmanirbhar”
Regulatory assets in the power sector include previously-incurred losses that are in the nature of deferred expenditure and can be recovered from consumers in future provided allowed by regulatory authorities.
Liquidity infusion needed in the short term, reforms for the long term
Distribution companies (discoms) owed Rs 92,693 crore to power producers in February 2020, registering an increase of 31 per cent over the year-ago same month, reflecting stress in the sector.
"The Cabinet in the coming week can approve a package for power distribution utilities (discoms) which are under stress due to lower demand and cash crunch," the source said.
According to the CII report, power sector, one of the essential services under the lockdown till May 3, is battling the twin issues of demand and liquidity compression.
Utilities still face a lot of stress
Power producers give 60 days to discoms for paying bills for the supply of electricity.
Full-fledged roll-out of prepaid meters tough to execute unless states come on board and funds are in place
Centre, states must work together to cure ills afflicting electricity generation and supply
Distribution companies (discoms) owed a total of Rs 54,654 crore to power generation companies in October 2018, according to portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators).
The loans would be sanctioned to states at cost plus a nominal fee to clear dues worth Rs 67,237 crore owed to gencos till August-end.