POSOCO asks power exchanges to stop trading by 27 discoms for pending dues towards gencos

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 having outstanding dues towards gencos, sources said.

The directive from POSOCO to Indian Energy Exchange (IEX), Power Exchange of India (PXIL), and Hindustan Power Exchange (HPX) is given to restricting the trade of electricity by utilities of 13 states, including those in Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, Bihar, Chhattisgarh, and Jharkhand.

POSOCO, a public sector enterprise under the Union power ministry, manages the integrated operation of the Indian power system.

In a letter shot off to the three exchanges, POSOCO said that buy and sell transactions in all products of power market for the discoms (27 discoms in 13 states) shall be entirely restricted till further notice from the delivery (of power) date of August 19, 2022.

The letter explains that the decision is taken given the outstanding of these utilities as per the information available on the PRAAPTI portal.

PRAAPTI stands for Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators.

The action appears to be taken under the Electricity (Late Payment Surcharge and related matters), Rules 2022 notified by the power ministry in June 2022.

Under the payment security mechanism, state utilities can be barred from trading on electricity exchanges for non-payment of dues and other charges to gencos.

It says, ''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''.