The Central Electricity Regulatory Commission has ordered UP Power Corporation Ltd (UPPCL) to clear the outstanding dues in six installments of Rs 128 crore per month starting from May 2008 for over-drawing from the inter-state grid.
This is in addition to the timely payment of current dues, if any, on account of unscheduled interchange (UI). If UPPCL fails to comply with the orders, the Commission may be constrained to direct the Northern Regional Load Dispatch Centre (NRLDC) to curtail the power supply without further proceedings, the power regulator said in a release.
Expressing the disappointment with the conduct of UPPCL and the commission has asked the NRLDC to keep it informed about the payment status of UPPCL into the UI pool account. Over the last six months, UPPCL paid a total UI amount of Rs 190 crore, while the charges for over-drawing during the same period were Rs 360 crore. The principal amount overdue 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, therefore the Commission has no alternative but to revert to physical curtailment of supply even if it jeopardises grid security, it said.
Allowing continued UI payment default would only encourage total anarchy in grid operation, which the commission cannot allow, the body said. State utilities pay to the power generating companies on the basis of scheduled energy and real-time deviations from schedules, as per the UI mechanism. Non-payment of UI charges amounts to making no payment for the energy drawn in excess of the schedule, which in other words can be termed as theft.
The commission has observed in its orders that it is aware of the hardships of the consumers due to poor quality of supply and frequent load shedding and UPPCL is responsible to meet their demand, but it does not allow the body to over-draw energy without paying for it.