Sunday, July 14, 2019

Pay dues or no power, discoms told

Tangedco’s Woes Feature In Parliament

Sivakumar.B@timesgroup.com

Chennai:14.07.2019

It’s time for Tangedco to pay its dues or risk face severe power shortage. The Centre on Friday told Parliament that a meeting of discoms, including Tangedco, was convened recently and they were told that unless they pay their pending dues to power companies the discoms would not be able to purchase any more power from these companies.

Tangedco officials told TOI that they were trying to pay off at least 50% of the money pending to the companies so that they are allowed to purchase power. Power demand in Tamil Nadu is yet to come down, they said.

“Solar power generation associations have brought to the notice of the government the issue of delay in payment by discoms. In order to ensure payment of dues, the ministry of power has issued an order,” said Union power minister R K Singh in the Lok Sabha.

According to the order, the Load Dispatch Centres (LDCs) shall dispatch power only after it is intimated by the generating and distribution companies that a letter of credit for the desired quantum of power has been opened and copies made available to the concerned generating company.

The intimation of LDCs shall specify the period of supply and shall dispatch electricity only up to the quantity equivalent of value of letter of credit. The dispatch shall stop once the quantum of electricity under LC is supplied.

“The generating company shall be entitled to encash the LC after expiry of grace period, as provided in the power purchase agreement. To address the issue of delay in payment by discoms, the ministry of renewable energy has written to Andhra Pradesh, Telangana, Tamil Nadu and Maharashtra to ensure that renewable power developers get timely payments,” said the minister.

“Tangedco is paying to wind power companies only after nine months or even more. It is affecting our working as we need to pay salaries to our staff and there are other expenditures. We have been asking the discom to release our payments,” said a wind power company chief.

Tangedco is facing losses for the last few years. “Tangedco implemented pay commission recommendations to its employees along with the government employees. This alone cost the TNEB, which is the holding company, a total of ₹1,317 crore each year. A total of 79,100 workers and 11,169 officials benefited from the pay agreement,” said a senior Tangedco official. “We are trying our best to pay off the power companies, especially wind power companies. During the wind season, we purchase the maximum of wind power. But due to the tight financial situation, the payments have been delayed to the wind power companies,” said the official.


IN THE RED: Tangedco officials told TOI that they were trying to pay off at least 50% of the money pending to power generation companies

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