CERC Imposes Rs 1-lakh Fine On MPSEB For Violating Grid Code

New Delhi, January 28: | Updated: Jan 29 2003, 05:30am hrs
For the first time in the history of the power sector, a state electricity board has been punished for violating the grid discipline.

The Central Electricity Regulatory Commission (CERC), in a order issued on Tuesday, has imposed a penalty of Rs 1 lakh on Madhya Pradesh State Electricity Board (MPSEB) for non-observance of the grid code, which led to the collapse of the western grid in July last year.

The commission has also issued show cause notices to Gujarat Electricity Board (GEB) and Maharashtra State Electricity Board (MSEB) to explain why similar action should not be taken against them for their failure to comply with the specified grid code. CERC has stated in its order that both MSEB and GEB have also contributed towards grid indiscipline.

The CERC order says, We direct that MPSEB shall pay a token penalty of Rs 1 lakh for non-observance of the provision of the Indian electricity grid code and non-compliance of directions of the commission. Despite repeated opportunities provided by CERC to restrain overdrawal of power, the major constituents of western region MPSEB, GEB and MSEB have continued to overdraw and bleed the grid.

The judgement was passed by a CERC bench comprising its chairman AK Basu and two members, GS Rajamani and KN Sinha. Mr Basu said, The commission has been issuing directions to all state electricity boards from time to time. In order to regulate inter-state transmission and save the situations of grid collapse, it has become imperative to invoke quasi-penal power of the commission.

According to the order, the penalty shall be deposited in the commissions office by February 15, failing which MPSEB shall make itself liable for further penalty in accordance with law.

CERC has passed this order on a petition filed by Western Regional Load Despatch Centre against nine respondents including MPSEB, GEB, MSEB, Chhattisgarh Electricity Board, Goa Electricity Board and NTPC in the matter of overdrawal of power from the grid below 49 hz and non-compliance of code.

The commission also pointed out that imposition of penalty shall not absolve MPSEB of its liability for appropriate action for future violations, if any.

The Western Regional Load Despatch Centre has also filed a complaint against MPSEB for non-payment of dues on account of unscheduled intercharge for the period ending December, 2002, at Rs 89.84 crore.