CERC issues notice to PSPCL and HVPN for not making payments

24 August, 2012

Central electricity regulatory Commission has issued notice to power utilities who failed to open letter of credit for making payments for power overdrawing from the northern grid.

CENTRAL ELECTRICITY Regulatory Commission (CERC) has issued notice to 24 regional power utilities for default in opening of letter of credit for making payments towards drawing unscheduled power from grid.

24 regional power utilities including Punjab State Power Corporation Limited, Haryana Vidyut Prasaran Nigam Limited, and Uttar Pradesh Power Corporation Limited and Himachal Pradesh State Electricity Board have been issued show cause notices for not complying with unscheduled regulations.

The utilities have been asked why appropriate actions under section 142 of the Electricity Act, 2003 should not be taken against them for non-compliance of the provisions of 10(4) of the UI Regulations. The matter shall be listed for hearing and further directions on September 25. “All regional entities which had at any time during the previous financial year failed to make payment of 'Unscheduled Interchange' charges within the time specified shall be required to open a Letter of Credit (LC) equal to 110% of its average payable weekly UI liability in the previous financial year, in favor of the concerned RLDC within a fortnight from the date these regulations come into force,” the noitices read.

As per order Punjab, Uttar Pardesh and Haryana are the top three states in northern region which resort to unscheduled power drawing from grid and have not opened LC to make timely payments. As per notice, PSPCL is to open LC for 44.05 crore, HVPN for 20.63 crore and UPPCL for 26.97 crore.