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New Delhi Feb. 7 The Central Electricity Regulatory Commission (CERC) is considering a proposal to hike penal charges levied on States for overdrawing from the grid.

The Central regulator is looking at suggestions forwarded by the Regional Load Despatch Centres (RLDC) to hike peak UI (unscheduled interchange) charges from the present rate of Rs 5.70 per unit to Rs 9.50 per unit.

"The new rates are likely to be announced in the next 10-15 days... We hope to achieve the twin objective of disincentivising overdrawal from the grid while at the same time increasing the viability of idle naphtha fuel power projects," the CERC Chairman, Mr A. K. Basu, said.

He said that with the new higher rates, power from projects that are based on expensive fuels such as naphtha may become a viable proposition. According to Central Electricity Authority estimates, about 500 MW of idle naphtha and liquid fuel capacity can come into the system once the new pricing regime comes into force.

In all, about 12 States including Uttar Pradesh, Jammu and Kashmir, Karnataka, Andhra Pradesh and Maharashtra have been issued notices by the Central regulator for chronic overdrawing of power from the Grid during the recent months.

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