Harsher penalty on cards for states drawing excess power

Harsher penalty on cards for states drawing excess power Lucknow, Oct 15 : The Central Electricity Regulatory Commission (CERC) is planning to double the penalty on states for drawing more power from the central grid than they are entitled to.

According to a commission proposal, the "unscheduled interchange" fee -- the penalty charge -- will be increased from Rs. 9 per unit to Rs. 18.

The CERC proposal -- the commission says the idea behind 100 enhancement of unscheduled interchange charges was to "maintain grid discipline" -- will hurt Uttar Pradesh and Tamil Nadu the most -- the two biggest defaulters.

"Sustained overdrawals at low frequency by Uttar Pradesh and Tamil Nadu prompted the initiation of suo moto proceedings for violation of grid discipline," the order said.

Referring to Uttar Pradesh, CERC said: "The overdrawing had gone up to 1,782 MW, 1,723 MW and 2,102 MW during the months of June, July and August 2009, respectively."

Maintaining that drawing of excess power threatened the security of the central grid, the commission said last year's 40 percent hike of unscheduled interchange charges "had failed to serve the intended purpose".

If implemented, the order could result in consumers suffering, according to officials here.

"Sure enough, if we are asked to shell out double the price for every megawatt overdrawn from the grid, we would have no option but to tax consumers," said a senior UP Power Corp official.

Attributing the excess drawing of power to the "ever-increasing need" of the country's most populous state, the official said consumers could be charged Re. 1-Rs. 1.50 more per unit if the CERC order was implemented.

"Otherwise, how do we recover our suddenly enhanced costs," he argued. (IANS)