Business Standard

Gencos to be allowed to sell power in open market if not paid by discoms

Power ministry has made the suggestion in order to reduce the retail tariff for consumers and reduce burden of regular payment on the discoms

Power, electricity
Premium

Shreya Jai New Delhi
The ministry of power has proposed to allow power generating companies (gencos) that do not receive payment for a quantum of power supply from the power distribution companies (discoms), to sell to a third party.

In draft amendments to the Electricity (Late Payment Surcharge) Rules, 2021, the ministry has made the propositions in order to reduce the retail tariff for the consumers and also reduce the burden of regular payment on the discoms.

“The generating companies are being given an option to sell power to third party and recover their cost. To this extent the fixed cost burden of the

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 19 2021 | 5:08 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com