The managements of power utilities of Telangana (Discoms) have alleged that they were banned from participating in the day ahead market with the Indian Energy Exchange (IEX) for procuring energy on the grounds of non-payment of dues to Gencos despite making payments.
“The National Load Dispatch Centre (NLDC) has imposed ban on our bidding (participation) in energy procurement without even reconciling the accounts with the Gencos concerned. We have cleared ₹1,360 crore out of ₹1,381 crore dues mentioned by the agency even before we were banned unilaterally,” a senior executive of one of the utilities said on Friday.
Even for the remaining amount, they could have a served a notice for payment. However, the NLDC had unilaterally decided to impose ban and it was very much unfortunate as the agency was acting beyond its mandate as per the Electricity Act, 2003, which is in force now. “As per the 2003 Act, the agency has to monitor and maintain only the grid discipline and it is not supposed to involve in any commercial activity such as its present unilateral decision,” the executive explained.
The accounts/ figures based on which the ban was imposed were also wrong and misleading as the default amount was arrived at without any reconciliation of payments made by the Telangana utilities. The ban was imposed in spite of stay issued by the High Court in the matter. “It would actually amount to contempt of court,” he pointed out.
“A statement generated by the Ministry of Power today (Friday) morning for accounts of payments to Gencos by Discoms till August 18, put the outstanding amount of Telangana utilities at only ₹52.85 crore. Based on information on payment made by us, they have deleted several items (amounts) and the MoP has also sent the information to NLDC,” the executive said and observed that the action (ban) appears to be aimed at creating trouble for Telangana.
There would be no role for any agency such as NLDC after a power purchase agreement is signed between a Genco and a Discom. But the NLDC was being brought in to control State utilities by the Centre/ MoP indirectly, in spite of power being in the Concurrent List. As the passage of Electricity (Amendment) Bill, 2022, which has the provision to empower NLDC, is put on hold for the time being the MoP has adopting new tactics to circumvent the delay in the passage of the Bill.
Despite the ban imposed on daily procurement of energy, which is averaging about 20 million units this season, there was no disruption in power supply to any sector across Telangana on Friday with the transmission system registering a peak load of about 12,200 megawatt, thanks to the possibility of ample and hydel and solar generation.
