POSOCO Asks Power Exchanges To Bar 27 DISCOMs From Trading Until They Clear Dues

Highlights :

  • POSOCO has issued a directive to the Indian Energy Exchange (IEX), Power Exchange of India (PXIL), and Hindustan Power Exchange (HPX) to restrict the trade of electricity by utilities in 13 states, including Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, Bihar, Chhattisgarh, and Jharkhand.
  • POSOCO, a public sector enterprise under the Union Power Ministry, is in charge of managing the integrated operation of the Indian power system.

According to sources, Power System Operation Corporation Ltd (POSOCO) has asked three power exchanges – IEX, PXIL, and HPX – to restrict electricity trading by 27 discoms in 13 states that owe gencos money. POSOCO has issued a directive to the Indian Energy Exchange (IEX), Power Exchange of India (PXIL), and Hindustan Power Exchange (HPX) to restrict the trade of electricity by utilities in 13 states, including Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, Bihar, Chhattisgarh, and Jharkhand.

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POSOCO, a public sector enterprise under the Union Power Ministry, is in charge of managing the integrated operation of the Indian power system.

POSOCO stated in a letter sent to the three exchanges that buying and selling transactions in all power market products for the DISCOMs (27 DISCOMs in 13 states) will be completely restricted until further notice from the delivery (of power) date of August 19, 2022.

The letter explains that the decision was made based on the outstanding balances of these utilities as reported on the Payment Ratification And Analysis in Power Procurement to bring Transparency to Generator Invoicing (PRAAPTI) portal.

The action appears to have been taken by the Electricity (Late Payment Surcharge and Related Matters) Rules 2022, which were published by the power ministry in June 2022.

State utilities can be barred from trading on electricity exchanges under the payment security mechanism if they fail to pay gencos dues and other charges. “The supply of power shall only be made if an adequate payment security mechanism is maintained or in the absence thereof, advance payment is made,” it said.

Further on this issue, the Andhra Pradesh Government responded by saying, “We have cleared all the Rs 350 crore due. It was only due to a communication gap that AP was probably showing as having an overdue. Over the past few months, the state has been purchasing about 40 million units of electricity per day through the power exchanges for meeting its needs.”

“We are taking up the issue with POSOCO to clear the misunderstanding. As of now we have no overdue to be cleared, so there should not be a problem in purchasing power from the exchanges,” a senior Energy Department official said.

Last year, Power System Operation Corporation Limited (POSOCO) had submitted a report on renewable energy curtailment in Tamil Nadu. The order, widely welcomed by solar developer bodies like the NSEFI, had asked for verification of claims made by both sides on the issue of curtailment.

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