The Hindu Business Line : UP Power Corp asked to clear dues or face supply cuts

New Delhi, April 15 The Central Electricity Regulatory Commission (CERC) has ordered the Uttar Pradesh Power Corporation Ltd (UPPCL) to clear its arrears for over-drawing from the inter-state grid.

If UPPCL fails to comply with the orders, the Commission plans to direct the Northern Regional Load Dispatch Centre (NRLDC) to curtail power supply to the utility without further proceedings, the central power regulator said in a release here on Tuesday. CERC has directed UPPCL to clear its dues in six equal instalments of Rs 128 crore per month each, starting from May 2008.

This is in addition to the timely payment of current dues, if any, on account of unscheduled interchange (UI) charges — the penalty to be paid by a utility for overdrawing from the grid during peak periods.

The regulator has asked the NRLDC to keep it informed about the payment status of UPPCL with respect to the UI pool account.

“This is an unprecedented situation, which threatens discipline among stakeholders in the sector as a whole. We will ask NRLDC to take action if UPPCL defaults on any of the payments,” said CERC’s Chief (Engineering), Mr Ravinder.

Over the last six months, UPPCL paid a total UI amount of Rs 190 crore, while the charges for over-drawing power during the same period were Rs 360 crore. The principal amount overdue from the State as on March 31, 2008 is Rs 767 crore.

For the recovery of long-standing UI dues, which the State utilities are unable to liquidate, the Commission had suggested appropriation from the Central Plan Assistance in order to avoid physical curtailment of power to a State. Since the suggestion has not yet been accepted, the Commission has no alternative but to revert to physical curtailment of supply even if it jeopardises grid security, CERC said.

Allowing continued UI payment default would only encourage total anarchy in grid operation, which the commission cannot allow, it added.

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