DISCOMS: Ownership & Efficiency

Power distribution companies will have to pay users for power cuts: RK Singh. Difficult but not impossible to implement. The compensation should come from the overall salary account of the DISCOM.

Soon all power distribution companies (discom) in the country will have to compensate consumers for unscheduled power cuts used by cash-strapped state utilities to artificially reduce demand and avoid buying additional electricity. The penalty will be the second tough measure taken by the ministry in recent times to discipline discoms, after last month’s tough norms for timely payments by discoms to power stations. However, industry players have expressed skepticism, saying it will be hard to determine wilful blackouts, most of which will be passed off as technical faults.

Payment guarantees for power purchase: DISCOM Efficiency