Generating cos can’t pull plug over non-payment

When contacted, CERC chairman Pramod Deo said: “We can hear the matter (implementation of pending power regulation notice to Rajasthan discoms) only when they (Tata Power) bring it to us.”

In a plea to the power ministry, Tata Power had contested the LDC's contention that even to initiate the power regulation process, the consent or approval of the defaulting discoms must be secured. Such a policy would render the PPA invalid, said the company. “We have given notice regarding discontinuation of supply to Rajasthan discoms with a copy to the LDC. We are waiting for the LDC to act as per our letter,”a Tata Power spokesperson told FE.

“The experience of the Mundra UMPP brings out the lacuna in meeting the intent of PPA. We need to provide a mechanism to ensure that once the process of termination has been set in motion and the aggrieved party approaches the LDC, the supply to the defaulting party should be suspended,” said Ashok Khurana, director general, Association of Power Producers, who has written to the power ministry in this regard on behalf of private power companies. The CERC (Regulation of Power Supply) Regulations, 2010, provide for regulating power supply to discoms in the event of payment default. But Tata Power will have to petition the regulator.

Most discoms in the country are in dire straits due to their inability to hike tariffs in a timely and adequate manner. The combined losses of discoms are

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