State power distribution companies (DISCOMs) owed power generators ₹623.9 billion (~$ 7.41 billion) in total dues for the monthly billing cycle in October 2024, according to the Ministry of Power’s payment ratification and analysis portal PRAAPTI.

The DISCOMs owed power generators ₹845.5 billion (~$10 billion) in September.

The current outstanding dues, excluding the latest monthly dues of ₹346.22 billion (~$4.11 billion), are ₹277.68 billion (~$3.3 billion).

The overdue before the trigger date is ₹275.23 billion (~$3.27 billion), after which the amount will increase by ₹2.45 billion (~$29.12 million) as the late payment surcharge (LPS) would apply.

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

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

For the second consecutive month, Uttar Pradesh DISCOMs had the highest dues at ₹91.67 billion (~$1.08 billion), followed by Maharashtra at ₹76.32 billion (~$907.26 million) and Tamil Nadu ₹66.64 billion (~$792.18 million).

The Ministry of Power issued the Electricity Distribution (Accounts and Additional Disclosure) Rules, 2024, to enhance transparency in financial disclosures and bolster regulatory compliance for DISCOMs. The rules aim to ensure that entities are financially safeguarded against long-term defaults by mandating provisions for receivables and enforcing the reporting of trade receivable days.

The twelfth annual integrated ratings of DISCOMs recorded significant financial and operational performance shifts. Of the 55 DISCOMs evaluated for the financial year 2023, 17  improved their grades, while 14 were downgraded.

Fourteen DISCOMs achieved an A+ grade compared to 10 last year. Six of these top DISCOMs are from Gujarat, three from Odisha, and two from Haryana. Eight of these top performers are privately owned companies.

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