State distribution companies (DISCOMs) owed power generators ₹778.57 billion (~$9.34 billion) in total dues for the monthly billing cycle in March 2024, according to the Ministry of Power’s payment ratification and analysis portal PRAAPTI.

For the February billing cycle, the dues amounted to ₹920.88 billion (~$11.12 billion).

The current outstanding dues, excluding the latest monthly dues, are ₹273.15 billion (~$3.27 billion).

The overdue before the trigger date is ₹273.02 billion (~$3.27 billion), after which the amount will increase by ₹129.4 million (~$1.55 million) as the late payment surcharge (LPS) would apply.

Uttar Pradesh DISCOMs had the highest dues at ₹97.7 billion (~$1.17 billion), followed by Tamil Nadu at ₹89.62 billion (~$1.07 billion), and Gujarat ₹78.51 billion (~$942.28 million).

The trigger date is one month after the due date of payment or two and a half months after the presentation of the bill by the generating company, whichever is later.

The DISCOMs are allowed to pay the outstanding amount in up to 48 installments.

Last December, the Ministry of Power proposed regulating short-term and general network access for DISCOMs who fail to clear their dues even after two and a half months by amending the Electricity (Late Payment Surcharge and Related Matters) Rules 2023.

The ministry highlighted in its year-end review that the Aggregate Technical and Commercial (AT&C) losses of DISCOMs decreased to 15.41% in the financial year (FY) 2022-23 from 17% in FY 2021-22. The ministry attributed the improvement to the various measures taken under the Revamped Distribution Sector program.

The program aims to help DISCOMs improve their operational efficiencies and financial sustainability by providing result-linked financial assistance to DISCOMs who achieve the minimum benchmarks and meet the pre-qualifying criteria.

Lower AT&C losses directly lead to a narrowing of the Average Cost of Supply and the Average Revenue Realized gap, ultimately benefiting the end consumers with quality supply.