CERC threats UPPCL to pay dues by May 15

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Lucknow, Apr 21: Uttar Pradesh Power Corporation Limited (UPPCL) got a warning from the Central Electricity Regulatory Commission (CERC) threatening curtailment of power supply for non-payment of Rs 767 crore dues of overdrawing power from the grid.

CERC has given a deadline of May 15 to the UPPCL to start paying the dues in instalments otherwise they will be forced to curtail the power supply from the grid to UP.

In a release issued by CERC chief engineer Ravindra last night, commission has ordered UPPCL to clear the entire principal arrears for overdrawing from the inter-state power grid in six monthly installments of Rs 128 crore each, starting from May 2008.

The commission has taken this step to inculcate the sense of discipline among states overdrawing power without allocation, he said.

In case of non-payment by UPPCL, the commission may be constrained to physically curtail the power supply without further proceedings from May 15.

Meanwhile, Northern Region Load Despatch Centre(NRLDC) has been asked by the Commission to draw a practical plan for curtailing the power in case of non-compliance of commission's orders.

The statements said UP has been the major defaulter as far as payment of overdrawl charges, also referred to as Unscheduled Interchange(UI) charges. UI charges depend upon the frequency of the system. If the frequency is very low, the charges for overdrawing of power are maximum. Recently the maximum charges has been hiked to Rs.10 per unit.

Against UI charges of Rs 360 crore in the October-March period, UPPCL paid only Rs 190 crore. The total principal amount overdue on September 2008 was 597 crore which increased to 767 crore as on March 31 this year.

However, when contacted UPPCL officials said they were aware about the action and will act accordingly.

UPPCL has already filed a petition in the Allahabad High Court contesting the high rates charged for excess withdrawal from the grid.


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