State Distribution companies (DISCOMs) owed power generators ₹878.1 billion (~$10.58 billion) in total dues for the monthly billing cycle in January 2024.

The current outstanding dues, excluding the latest monthly dues, are ₹347.52 billion (~$4.18 billion).

The overdue before the trigger date is ₹286.53 billion (~$3.45 billion), after which the amount will increase by ₹60.99 billion (~$734.92 million) as the late payment surcharge (LPS) would become applicable.

Maharashtra had the highest dues at ₹60.92 billion (~$734.08 million), followed by Uttar Pradesh with total due amounting to ₹52.63 billion (~$634.18 million), and Tamil Nadu ₹47.95 billion (~$577.79 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.

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. The ministry has proposed amendments to the Electricity (Late Payment Surcharge and Related Matters) Rules 2023 and encouraged stakeholders to submit their comments by January 12, 2024.

The Ministry of Power 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 was introduced to help DISCOMs improve their operational efficiencies and financial sustainability by providing result-linked financial assistance to DISCOMs who achieve the basic minimum benchmarks and meet the pre-qualifying criteria.

The reduction in AT&C losses directly contributes to the improvement in the Average Cost of Supply and the Average Revenue Realized gap, ultimately benefiting the end consumers with quality supply.

In December 2023, DISCOMs owed power generators ₹655.95 billion (~$7.87 billion) in total dues for the monthly billing cycle.