CERC permits use of transmission assets

Written by Economy Bureau | Mumbai, Dec 28 | Updated: Dec 29 2007, 05:11am hrs
Power sector regulator CERC on Friday issued guidelines for use of transmission assets for any other business, including telecom where the diversifying utility will have to share revenues with existing beneficiaries at Rs 3,000 per year per km for every proposed optical line. The regulations, called the Central Electricity Regulatory Commission (Sharing of revenue derived from utilisation of transmission assets for other business) Regulations, 2007, would be applicable for owners of inter-state transmission system like Power Grid Corp (PGCIL).

The transmission owner shall share revenue at Rs 3,000 per year per km of the right-of-way utilised for laying one optical fibre cable over the transmission towers and the revenue shared may be apportioned between the users of the optical fibre cable or optical fibre composite overhead ground wire in proportion to the number of fibres identified for utilisation, CERC said in a statement. The regulations would come into force from January 1, 2008.

However, country s central transmission utility PGCIL, which is already executing its telecom plans, has opposed the revenue sharing rate terming it as too high and suggested its scaling down, CERC said.

While PGCIL has represented that the rate is too high, we have been made to understand that it is already paying to some state utilities at around this rate for laying optical fibre cables on the latters transmission lines, the regulator said, adding that the rate is reasonable at least to start with, it added.