Power Grid unable to recover transmission charges of 1700 crore

10 July, 2012

Power Grid is unable to regulate power as per directions of CERC as generating stations refuse to back down their generation.

POWER GRID Corporation of India has petitioned to Central Electricity Regulatory Commission (CERC) that it is unable to recover transmission charges of Rs. 1700 crore from the beneficiaries.

Power Grid has contended that CERC, in December last, had directed all he Discoms to make timely payment of transmission charges. CERC in its order of January 25 had contended that transmission licensees can resort to power regulation to recover its outstanding dues from defaulting Discoms. Despite above directions, Power Grid is unable to recover Rs. 1700 crore and this is threatening the financial health of company.

Power Grid has contended that as per Regulation 15 of the Power Supply Regulations, the transmission licensee is required to decide the quantum and duration of denial of the open access/access in consultation with any of the concerned generating company.

NTPC has raised the issue of locating alternative buyers due to uncertainty due to quantum and period of the regulation, corridor constraints, the possibility of restricted operation of generating station and its impact on the commitment of NTPC make to Government of India and frequent part load operation increasing the risk of machine outages and the disputes by the beneficiaries in payment of NTPC dues.

Under such circumstances, it is practically difficult to resort to regulation of power supply in case of the default of payment to transmission licensees.

CERC has issued notice to NTPC Limited, New Delhi, NHPC Limited, Faridabad, SJVN Limited, New Delhi, NEEPCO Limited, Shillong, THDC India Limited, Rishikesh and Power Supply Operation Company, New Delhi to file their replies by July 26 and petitions shall be heard on August 2.