December 02, 2008

CERC asked UPPCL to clear dues or face supply cuts

It is reported that Central Electricity Regulatory Commission has ordered the Uttar Pradesh Power Corporation Limited to clear its arrears for over drawing from the inter state grid.

CERC has directed UPPCL to clear its dues in 6 equal installments of INR 128 crore per month each, starting from May 2008. If UPPCL fails to comply with the orders, CERC plans to direct the Northern Regional Load Dispatch Centre to curtail power supply to the utility without further proceedings. CERC has asked the NRLDC to keep it informed about the payment status of UPPCL with respect to the UI pool account.

Mr Ravinder chief engineering at CERC said that "This is an unprecedented situation, which threatens discipline among stakeholders in the sector as a whole. We will ask NRLDC to take action if UPPCL defaults on any of the payments."

Over the last 6 months, UPPCL paid a total UI amount of INR 190 crore, while the charges for over drawing power during the same period were INR 360 crore. The principal amount overdue from the state as on March 31st 2008 is INR 767 crore.