NTPC sends notice to UPPCL, threatens to cut power supply

18 Aug 2021 CW Team

NTPC has threatened the Uttar Pradesh Power Corporation (UPPCL) to cut power supplies from Friday due to the total outstanding amount rising to over Rs 10,500 crore.

The UPPCL’s total dues, pending for over 60 days, currently stand at Rs 1,160 crore. If immediate arrangements are not made, the state could lose 5,512 MW of power supply from various NTPC power plants, comprising Kahalgaon, Rihand, Dadri, Farakka and Singrauli.

According to the regulation notice sent to UPPCL by the NTPC on August 12, the dues have been pending despite repeated follow-ups at multiple levels in person and through letters. The state’s overdue pending receivables of about 60 days or more to all power generators from which it supplies electricity were at Rs 1,689 crore at the end of June.

The overall power demand in Uttar Pradesh is about 21,116 MW, and NTPC curtailing supply indicates that the state is losing about a quarter of its power source.

To insulate renewable energy-based power generators from the vagaries of irregular payments, the state’s electricity regulator has ordered UPPCL to deposit Rs 7,244.7 crore in the renewable purchase obligation regulatory fund by January 2022 to pay wind, solar and hydropower generators providing electricity to the state. The deposit of Rs 1,459.3 crore is to be paid by UPPCL for not reaching its RPO targets till FY21.

Discom overdues to power generators at June-end were at Rs 91,579 crore, dropped 9.1% from the previous year in the same period, displaying the utilisation of the PFC-REC loans under the Rs 1.25-lakh-crore liquidity infusion scheme declared by the Centre under the Atmanirbhar Bharat package to clear discom dues to electricity producers.

About Rs 77,000 crore had been distributed to the states under the scheme in the first tranche. After dropping in March after receiving funds under the liquidity scheme, the overdues to power plants have steadily increased.

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Also read: CESC subsidiary set to acquire Chandigarh's power discom

NTPC has threatened the Uttar Pradesh Power Corporation (UPPCL) to cut power supplies from Friday due to the total outstanding amount rising to over Rs 10,500 crore. The UPPCL’s total dues, pending for over 60 days, currently stand at Rs 1,160 crore. If immediate arrangements are not made, the state could lose 5,512 MW of power supply from various NTPC power plants, comprising Kahalgaon, Rihand, Dadri, Farakka and Singrauli. According to the regulation notice sent to UPPCL by the NTPC on August 12, the dues have been pending despite repeated follow-ups at multiple levels in person and through letters. The state’s overdue pending receivables of about 60 days or more to all power generators from which it supplies electricity were at Rs 1,689 crore at the end of June. The overall power demand in Uttar Pradesh is about 21,116 MW, and NTPC curtailing supply indicates that the state is losing about a quarter of its power source. To insulate renewable energy-based power generators from the vagaries of irregular payments, the state’s electricity regulator has ordered UPPCL to deposit Rs 7,244.7 crore in the renewable purchase obligation regulatory fund by January 2022 to pay wind, solar and hydropower generators providing electricity to the state. The deposit of Rs 1,459.3 crore is to be paid by UPPCL for not reaching its RPO targets till FY21. Discom overdues to power generators at June-end were at Rs 91,579 crore, dropped 9.1% from the previous year in the same period, displaying the utilisation of the PFC-REC loans under the Rs 1.25-lakh-crore liquidity infusion scheme declared by the Centre under the Atmanirbhar Bharat package to clear discom dues to electricity producers. About Rs 77,000 crore had been distributed to the states under the scheme in the first tranche. After dropping in March after receiving funds under the liquidity scheme, the overdues to power plants have steadily increased. Image Source Also read: CESC subsidiary set to acquire Chandigarh's power discom