Have told states to reduce tariffs for discoms, says Power Minister RK Singh

The Union Power Ministry has written to states, asking them to reduce tariffs in view of the implementation of pre-payment arrangement for procuring power by distribution companies (discoms).

Avatar Written by November 28, 2019 14:59

New Delhi: The Union Power Ministry has written to states, asking them to reduce tariffs in view of the implementation of pre-payment arrangement for procuring power by distribution companies (discoms).

RK Singh

“We have made an arrangement for pre-payment which means the carrying cost has reduced. Since the carrying cost has reduced, we have told the regulators to cut tariffs. This letter has gone so the tariffs will reduce accordingly. For reducing the tariffs, we have taken other steps as well,” Power Minister RK Singh said.

Earlier this year, the government has taken steps such as mandatory issuance of letter of credit to generating companies by discoms and single-day payment.

power service

Under single-day payment, discoms have to make payments a day in advance to procure power supply, which will be carrying cost.