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From Next Year, Power Distribution Companies To Pay Penalty For Load Shedding

DIVYIA ASTHANA | 0
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| June 6 , 2018 , 10:37 IST

In an attempt to eliminate power cuts, Union power minister RK Singh on Tuesday said that from the next financial year, power distribution companies (discoms) would have to pay penalties for load shedding in any are across the country.

Singh added that the discoms would also have to bear the financial burden caused from aggregate transmission and commercial (AT&C) losses beyond the base mark of 15 percent.

"The twin proposals have been included in the Centre's draft power policy that would be put in the public domain to invite suggestions from the public. The final policy will be effective from the next financial year," Singh said.

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Elaborating, Singh said that the quantum of penalty to be levied on the discoms due to load shedding would be decided by the respective power regulatory authority of the concerned state.

In the past, discoms account for AT&C losses when they claim reimbursements from the government for the services they render while transmitting power but once the new power police is put in place, discoms would not be reimbursed for the AT&C losses beyond the base mark of 15 percent.

Singh made the announcements while talking about the achievements made by his ministry in the past 48 months in an address to reporters from seven state capitals of Delhi, Jaipur, Lucknow, Patna, Guwahati, Jaipur and Bhopal, via video conference.