In the latest step to curb the outstanding electricity bills, the Chhattisgarh State Power Distribution Company Limited (CSPDCL) has started disconnecting power connections from government departments across the state. Government offices collectively owe over Rs 3,000 crore in electricity bills, some of them owe so much that they have not paid their bills for over two years.
The discom disconnected electricity supply to 747 government offices in different districts in one week. The immediate action seems to have convinced some departments to pay their outstanding bills. 417 of the affected offices paid their arrears, and the power utility is now able to recover Rs 4.43 crore.
The crackdown comes as delayed payments and government departments’ reluctance to move their electricity connections to the mandatory prepaid smart-meter system are the focus of the government.
747 government offices suffer power disconnections
The 747 disconnected government connections had outstanding dues of around Rs 12.83 crore. Some offices had failed to pay their electricity bills for months, some with dues in excess of a year.
The disconnections were carried out in different districts as the discom intensified its action against government offices that had not cleared their bills.
But for now, the move seems to have found an immediate response. Of the 747 offices whose electricity supply was cut off, 417 cleared their outstanding payments. The discom then recovered Rs 4.43 crore from these payments.
But the Rs 12.83 crore owed by 747 offices is only one part of a much bigger problem facing the state power distribution utility. Government departments in Chhattisgarh are owing electricity bills of more than Rs 3,000 crore to date, officials said.
Some departments have been in default for more than two years and are still in default, adding to the financial burden of the power distribution company.
The Urban Administration and Development Department is the biggest defaulter and owes electricity bills of over Rs 1,200 crore. Other departments with outstanding debts include Panchayat and Rural Development, Public Health Engineering, School Education, Forest, Health, and Scheduled Caste Welfare.
The magnitude of the dues has made recovery from government departments an important issue for the state’s electricity distribution system.
Smart Meter rollout adds to the pressure
The power disconnection drive is not only about unpaid bills. The discom is also trying to push government departments towards the use of prepaid smart meters.
This is connected to the Centre's Revamped Distribution Sector Scheme (RDSS) that addresses the operational efficiency and financial viability of power distribution companies. Smart-metering and infrastructure upgrades are also included in the programme.
Almost 80 percent of government electricity connections in Chhattisgarh are already being upgraded with smart meters, officials said. But many government offices have been slow to convert to the prepaid system, they added.
The discom had announced that government smart meters would be switched to prepaid mode from August 1. But only around Rs 1.5 crore in prepaid electricity payments from government departments had been received.
Departments were also given the option to clear their existing arrears in instalments and make prepaid recharges for their electricity consumption. But officials said repeated reminders did not lead to the required response, prompting the discom to take the more stringent step of disconnecting power.
The financial pressure is particularly great as power distribution companies depend on timely bill collection to maintain their operations, pay for electricity procurement and invest in infrastructure.
The Centre’s RDSS itself is aimed at improving the financial sustainability of distribution utilities and reducing the gap between the cost of supplying electricity and the revenue collected from consumers.
Disconnections force departments to pay dues
The recent move is one more example of how direct enforcement can force departments to fix long-standing electricity bills. And just a few hours after the disconnections, hundreds of offices were cleared of backlogs and their electricity was restored.
But the bigger problem remains the more than Rs 3,000 crore in unpaid bills accumulated by government departments across Chhattisgarh.
The discom’s action also underscores the unusual situation of government offices themselves becoming major electricity defaulters. Departments responsible for delivering essential public services are among those carrying large unpaid utility bills.
The Urban Administration and Development Department alone owes over Rs 1,200 crore, while several other departments have accrued dues running into hundreds of crores.
For the discom, recovering these dues could be a huge boost to its finances. And for government departments, the move to prepaid smart meters means more control over electricity consumption will also mean better electricity usage and less arrears will be prevented from being built up in the future.
So today’s power disconnections are a recovery measure and a warning to government offices that long overdue payments will not be ignored anymore. With hundreds of departments still owing outstanding bills, the question now will be whether the state government can clear the remaining dues and make the electricity bill payments on time in the future.
