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Coronavirus outbreak: Centre asks states to put a 3-month moratorium on electricity bill payments amidst total lockdown

In addition, the Union Ministry has issued directives to the Central Electricity Regulatory Commission(CERC) to provide 3-months moratorium to generation and transmission companies, reduce the payment security amount by half for future power purchases and charge no penalty on late payment.

As India enters the 6th day of total lockdown amidst the coronavirus outbreak, the Central Government has issued a notice to all the state governments, asking them to put a 3-month deferment on electricity bill payments.

In addition, the Union Ministry has issued directives to the Central Electricity Regulatory Commission(CERC) to provide 3-months moratorium to generation and transmission companies, reduce the payment security amount by half for future power purchases and charge no penalty on late payment. This comprises payments by distribution companies to private power plants and transmission projects as well.

In their statement, the central government has said that due to the lockdown, many people are unable to pay their dues to the discoms which are facing, severely affecting their liquidity position and impairing their ability to pay to the generating and transmission companies. The statement added that the generating and transmission companies will continue the supply and transmission of electricity even to discoms which have large outstanding dues.

“In view of the lockdown imposed to blunt the spread of coronavirus pandemic, the whole workforce of the power sector-generation, transmission, distribution and systems operation- are working tirelessly to keep all the homes and establishments lighted,” the statement said.

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