Power regulator may cut supply to UP

The Central Electricity Regulatory Commission (CERC) has threatened to curtail power supply to Uttar Pradesh for non-payment of dues for overdrawing from the grid. This is the first time that the commission has decided on such an extreme measure.

The CERC has ordered UP Power Corporation Ltd (UPPCL) to clear the entire principal arrears for overdrawing from the inter-state power grid in six monthly installments of Rs 128 crore each, starting from May 2008, the commission said in a statement.

In case of non-payment, the commission may be constrained to physically curtail the power supply without further proceedings.

UP has been the worst defaulter as far as payment of overdrawal charges, also referred to as unscheduled interchange or UI charges, is concerned.

Against UI charges of Rs 360 crore in the October-March period, UPPCL paid only Rs 190 crore. The total principal amount overdue as on March 31 is Rs 767 crore.

Brushing aside the possibility of this being a mere warning, CERC chief (engineering) Ravinder said: "We mean it." He added that the commission had taken this step to avoid "total anarchy in grid operation".

To ensure grid discipline, those who draw more from the grid than what is scheduled for them have to pay a UI charge into a UI pool account. This is then paid out to those who were under-drawing from the grid.

Real-time data for this is collected by the five Regional Load Despatch Centres.

UPPCL has already filed a petition in the Allahabad High Court contesting the "high rates" levied for excess withdrawal from the grid, according to the managing director of the corporation, Avneesh Awasthi.