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Power shocks: Discoms need transparency

Only transparent pricing and accounting will help the discoms recover their dues

Power shocks: Discoms need transparency
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On April 16, as evening peak time approached, the cost of electricity at the exchange climbed up to Rs 10.31 per unit by 4 pm

Business Standard Editorial Comment
Power System Operation Corporation, the national grid operator, earlier this month decided to debar 12 states and a Union Territory from buying electricity in the spot market because of their distribution companies’ (discoms’) pending dues to generators. Some state discoms have since cleared their dues. Such an extreme step by the grid operator has once again highlighted the underlying problem in the power sector. The Union government is trying to rescue the sector through a new scheme, though it remains to be seen if it makes a difference, given the systemic inefficiencies. While the problems in the sector are well