These directions came as part of the APERC's Tariff Order determining the retail tariff, the energy supply and the Discoms' revenue requirements for the year 2020-21, issued on Monday
Power ministry has been planning it for two years, but with limited success
After the merger, the new entity will be required to reduce its exposure in a project to 25 per cent which may not be feasible
The minister said benefits under the new scheme would be disbursed if discoms stick to their trajectory for loss reduction
Several markets and business models are emerging and will co-exist in India.
The Centre aims to reduce electricity transmission and distribution losses in the country to 15 per cent in next two years, Singh said
Power producers' total outstanding dues owed by distribution companies stands at Rs 69,558 crore by September-end 2019
Discoms plan to leave domestic, commercial, industrial and agriculture consumers largely untouched during the year 2020-21
Earlier this year, the government has taken steps such as mandatory issuance of letter of credit to generating companies by discoms and single-day payment
The main purpose of introducing real-time power market is to deal with the renewables interference and better portfolio management by discoms, gencos and other consumers.
Commercial banks are unwilling to lend to these firms because of their high outstanding debt
A smart meter has a modem (communication device) and a remote switch by which demand, supply and billing can be monitored and controlled remotely
The plan is also up against supply issues with vendors reluctant to deliver to certain states due to payment concerns
In September this year, total overdue amount, which was not cleared even after 60 days of grace period offered by generators, stood at Rs 52,408 crore as against Rs 34,658 crore in the same month last
Consumers in Delhi enjoy free electricity up to 200 units a month. This move has led to a significant number getting zero monthly bills
Power Minister said that under the new tariff policy, the discoms would have to pay a surcharge for delayed payments
"A large number of discoms are availing benefit under the SCED system to get cheaper power supplies," a source said
Of the 24,150 Mw of gas-based power generation capacity, 14,305 Mw has no supply of domestic gas
The weak state of discoms is a big risk
As part of the plan, the federal government is mulling providing subsidies to partially cover the costs