6 Aug :Making it absolutely clear that grid indiscipline will not be tolerated, the Central Electricity Regulatory Commission has imposed, in its recent order, a penalty of Rs. 1 lakh (Rs. One lakh) on M.P. Power Trading Company Limited under Section 142 of the Electricity Act, 2003.
Going even further, the Commission has issued a notice to the Managing Director, of the trading company as to why additional penalty should not be recovered from him in view of the provisions of law that the person-incharge of and responsible for the conduct of business of the company guilty is also liable to be proceeded against and punished.
The Commission found the trading company guilty of non-compliance of the Commission’s directions for liquidating the amount of Unscheduled Interchange (UI) arrears which had piled up to Rs. 338 crore.
The Commission came down heavily on the defaulter and said that overdrawl from the grid and not making payment for the same were the symptoms not only of grid indiscipline but also of financial indiscipline, when seen in the light of the fact that the respondent has earned revenue through sale of power over-drawn from the grid and this cannot be permitted.
Stating that payment of UI charges is to bring about effective discipline in the system and the maintenance of grid discipline, the Commission emphasized that timely payment of UI charges is a duty owed by every utility to other grid connected entities as it contributes towards grid discipline.