Date:14/11/2007 URL: http://www.thehindubusinessline.com/2007/11/14/stories/2007111452351000.htm

Back Regulator proposes penalty for power overdrawal

Our Bureau

New Delhi, Nov. 13 The Central Electricity Regulatory Commission (CERC) has proposed a congestion charge on states of the northern region resorting to overdrawing power from the newly interconnected central grid.

Instances of overdrawing of power, beyond allocated share of respective states, from the grid are reported to be highest among constituents of the northern grid.

The congestion charge would be 300 paise per unit for overdrawal, underdrawal as well as over or under injection for all grid constituents of the northern region, a CERC order said. This would be added to the notified frequency-linked unscheduled interchange rate prevailing from time to time. The order would be effective November 19, and would remain in force for three months.

“If the state utilities do not exercise the necessary self-control, major grid disturbances in near future are very likely, and hence it has become imperative to introduce a commercial signal to reduce overdrawals and increase generation on the downstream of congested transmission corridor,” the order said.