The cup of woes seems to overflow yet again for the power- and cash-starved Uttar Pradesh Power Corporation Ltd (UPPCL).
The Central Electricity Regulatory Commission (CERC) has slapped a show-cause notice on the state power utility for overdrawing power from the grid and not paying the dues on time. The CERC has also asked the UPPCL to explain why penal action should not be initiated against it for default of charges for overdrawal in January and has asked it to give a satisfactory reply by April 14.
Failing this, it may initiate action under the Electricity Act. Under the Act, the CERC can impose a penalty of Rs 1 lakh for non-payment of arrears.
It may be mentioned that CERC had, in May last year, issued a notice to the UPPCL to clear UI (unscheduled interchange) dues of Rs 768 crore in 12 installments and had threatened to curtail power supply for non-payment. It was under this agreement that UPPCL was supposed to make a payment of Rs 64 crore every month from May last year to April this year.
However, the utility defaulted on the payment of its January installment and received this notice.
Says a senior official of the UPPCL, ?We were unable to make the payment for January due to the agitation by power employees. All other liabilities till March have been cleared. Now only one last installment of Rs 64 crore for the month of April and the default payment of January remains to be cleared, which we will do at the earliest.?