Power News We love to talk!

JUL 14 2012

Power distribution companies owe Rs 550-600 crore to Power Grid

  • Economic Times, ET Bureau / Hyderabad
  • Created: Sat 14th JUL 2012

Transmission major Power Grid is also bearing the brunt of poor financial health of power distribution companies as discoms are yet to pay dues of Rs 550-600 crore to the state-run company.

"Transmission charges due from distribution companies, including those from Delhi and Uttar Pradesh, are about Rs 550-600 crore," a senior Power Grid official told PTI.

Discoms have to pay Power Grid charges related to carrying electricity to the grid.

"We have submitted a petition to the Central Electricity Regulatory Commission (CERC) to recover the outstanding dues," the official said.

Generally, discoms have a period of 60 days -- from the day of electricity transmission -- to pay the required charges to Power Grid. If payments are not made during that period, then the total charges are considered as dues.

According to the official, total monthly transmission charges are about Rs 950 crore.

Power Grid is responsible for transmission of electricity across the country.

The company plans to add about 40,000 circuit kilometres in the 12th Five-Year Plan period ending March 2017. Currently, it has over 94,000 circuit kilometres of lines.

One circuit kilometre generally refers to one kilometre of electrical transmission line.

The precarious financial health of discoms is a major concern for the power sector and the government is working on restructuring their debt worth about Rs 2 lakh crore.

Lower tariff realisation and high transmission and distribution losses have been mainly blamed for the poor financial position of discoms.

As per the Shunglu panel report released last year, the net loss, after subsidies, of 15 discoms -- which account for over 90 per cent of the country's power consumption -- was Rs 27,000 crore for the year ended March 31, 2010.

Tags

Delhi Uttar Pradesh Power Grid Grid Carbon Emission Reduction Central Electricity Regulatory Commission Electricity Regulatory Commission transmission charges Power

Related News

  • Extension of validity of the Commissions Tariff Order on RE Sources  Read more
  • All India - CERC: Application for grant of Inter-State trading license to IL&FS; Energy Development Company Limited  Read more
  • Reliance Industries row: Oil Ministry rebukes ONGC for making 'frivolous allegations' against govt  Read more
  • Indias energy forecasts are falling short and climate could win  Read more
  • Clean energy's share in India's power generation mix rises to 7.54 per cent  Read more
  • Uttar Pradesh: In the matter of Short Term Power Purchase for the period April, 2014 to June, 2014 by Distribution Licensees  Read more
  • Budget 2016: Clean Environment Cess to hike CIL's average coal price by 20 percent  Read more
  • Spot power prices ease 11 per cent in June as rains weaken demand  Read more
  • DMIDC starts commercial operations of 1MW solar plant in Rajasthan  Read more
  • Lack of captive plants worsens power crunch  Read more