Sources said the discoms have been struggling with poor revenue since the outbreak of Covid-19 as revenues from industrial and commercial segments have nosedived to an all-time low
AMARAVATI: Power distribution companies (discoms) in the state have begun issuing notices to clear dues or face disconnection of supply.
Eastern Power Distribution Company Limited (EPDCL), Central Power Distribution Company Limited (CPDCL) and Southern Power Distribution Company Limited (SPDCL) are waiting for the green signal from the government to cut off power supply to local bodies.
Sources said the discoms have been struggling with poor revenue since the outbreak of Covid-19 as revenues from industrial and commercial segments have nosedived to an all-time low. Although commercial establishments have resumed operations, consumption is yet to reach peak due to poor business turnovers. Similarly, industrial units are yet to reach their full operational capacity after the lockdown, resulting in fall in revenues of discoms.
The discoms are managing their finances based on collection from domestic supplies which is not enough to meet their requirements. The government’s decision to waive minimum monthly charges to several commercial establishments including movie theatres has also hit revenues of discoms.
In this context, the discoms have set their focus on collection of old dues from government agencies, including local bodies. Sources said village panchayats alone owe nearly Rs 3,000 crore to the discoms as the local bodies have not made payments to the power utilities for the past 12 months.
Sources said some village panchayats have not cleared dues even for nearly 18 months. Small municipal towns and nagar panchayats were also unable to clear the dues for the past several months due to their revenue losses, sources said, and added that discoms were yet to recover nearly Rs 1,000 crore from small municipal bodies and nagar panchayats. “We have been continuing the supplies to the local bodies as supply disconnection would impact drinking water supplies and street lighting. However, it is becoming increasingly difficult to continue supplies without getting the monies from the local bodies,” said a senior official with a discom.
Sources said the government had directed the panchayats to clear the dues when the Finance Commission grants were released a few months ago. However, special officers of gram panchayats have utilised the resources for the containment of Covid-19.
With district collectors directing the panchayat officials to focus on sanitation, spraying of bleaching and sodium hypochlorite in containment areas, most of the grants were spent on managing Covid-19 containment operations. “We are waiting for the release of another spell of grant to clear the power dues,” said a district panchayat officer.
Source: TNN
