GRIDCO moves OERC for amnesty scheme to settle old arrears

The rebate for consumers who opt for clearing the arrears in six equal consecutive monthly instalments should get 50 per cent waiver of DPS and 30 per cent on the balance arrears.
Image used for representational purposes only
Image used for representational purposes only
Updated on: 
2 min read

BHUBANESWAR: Faced with legacy arrear dues amounting to Rs 6,425 crore receivable from erstwhile power distribution companies before takeover by Tata Power, the bulk power supplier GRIDCO has proposed the Odisha Electricity Regulatory Commission (OERC) for introduction of an Amnesty Arrear Clearance Scheme (AACS) to give an opportunity to genuine consumers to settle long-pending dues in a transparent and equitable manner.

Advocating for such a scheme in its annual revenue requirement application for determination of bulk supply tariff (BST) for 2026-27, GRIDCO said the proposed amnesty scheme should be applicable for settlement of the past arrears accumulated prior to the takeover of the four distribution companies (discoms) CESU, NESCO, SOUTHCO and WESCO by Tata Power.

The dues receivable from the erstwhile discoms include a principal amount of Rs 2,656.42 crore while the delayed payment surcharge (DPS) has accumulated to Rs 3,769 crore. The state-run power trading utility further suggested that the amnesty scheme would be applicable to all categories of consumers except the state government and its entities. The period of applicability of the scheme should be valid for 180 days (six months) from the date of approval of OERC.

On the quantum of rebate, GRIDCO proposed that 100 percent delayed payment surcharge (DPS) and 50 per cent of the balance arrear (excluding electricity duty) should be waived, if arrear payment is made by the domestic consumers in one go (one-time settlement). The rebate for consumers who opt for clearing the arrears in six equal consecutive monthly instalments should get 50 per cent waiver of DPS and 30 per cent on the balance arrears.

Similarly, for other low transmission (LT) defaulting consumers, the entire DPS amount should be waived and they be asked to pay 40 per cent of the balance arrears for one-time settlement. Those who want to clear the arrear payment in six monthly instalments should get 50 per cent rebate on DPS and 30 per cent on the balance arrears.

For HT and EHT consumers having arrear dues, the OTS should waive the DPS and 30 per cent of the balance arrears while the rebate should be 40 per cent on DPS and 20 per cent of the balance in case of clearing the dues in monthly instalments in six months.

Seeking permission from OERC to file a joint petition along with the Tata Power-managed discoms, GRIDCO said such a scheme will enable distribution utilities to enhance overall revenue realisation and cash flow and reduce the burden of non-performing receivables. It will also improve consumer compliance, payment discipline and restore financial stability of the electricity distribution sector.

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