With the implementation of the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, there has been improvement in the recovery of outstanding dues of suppliers including generating companies, transmission companies, and traders.
The total outstanding dues of states which were at Rs 1,379.49 billion as on June 03, 2022, have been reduced by Rs 246.80 billion to Rs 1,132.69 billion with the timely payment of just four equated monthly installments (EMIs). For payment of EMI of Rs 246.80 billion, 5 states have taken loan of Rs 168.12 billion from Power Finance Corporation Limited and REC Limited, and 8 states have opted to make their own arrangement. Distribution companies (discoms) are also paying their current dues in time to avoid regulations under the rule. Discoms have paid almost Rs 1,680 billion of current dues in the last 5 months. Presently, only one discom i.e. Jharkhand Bijli Vitran Nigam Limited is under regulation for non-payment of current dues. Outstanding dues of discoms on the trigger date have been reduced to Rs 2.05 billion from Rs 50.85 billion as on August 18, 2022. Based on the results achieved so far, it is expected that strict implementation of the LPS rules will bring back the financial viability of the power sector in the country.