MPSEB owes UI charges arrears of Rs 114 crore including principal and interest to PowerGrid Corporation since November 7 last year.
PowerGrid Corporation, which works as the western region load dispatch centre (WRLDC), has prayed that MPSEB be asked to clear UI arrears as on date within next 15 days. In future, MPSEB be directed to pay UI charges within the stipulated period of 10 days of the issue of UI account.
PowerGrid Corporation has submitted that MPSEB has failed to make payment of UI charges under the Indian Electricity Grid Code (IEGC) and ABT and it has not accorded the higest priority to UI charges payment under the provisions of Electricity Regulatory Commission Act (ERCA).
PowerGrid Corporation has also sought the CERCs direction under section 44 and 45 of ERCA for the continuous failure on part of MPSEB of UI payments for each day of non-paymentt from November 7, 2002 (which is the first day of default).
According to PowerGrid, under the ABT regime financial and operational discipline are linked. If MPSEB does not pay the other constituent state electricity boards from western region would presume that there was no use of ABT regime and it would seriously affect the grid operations.
PowerGrid Corporation argued that there would be a free-for-all in the absence of any deterrant. Such a situation would lead to grid indiscipline and may lead to a grid collapse. Currently, the western region has been linked to eastern region and it has been receiving power from the eastern and northern regions. If MPSEB continues to draw power without UI payments, it would also affect the operations of eastern and western regions.