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SC allows CERC to charge utilities for overdrawing power

SC allows CERC to charge utilities for overdrawing power
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First Published: Mon, Jul 02 2007. 03 25 PM IST
Updated: Mon, Jul 02 2007. 03 25 PM IST
PTI
New Delhi: The Supreme Court on 2 July allowed Central Electricity Regulatory Commission (CERC) to charge utilities for drawing more power than their entitlements.
A bench consisting of Justice Tarun Chatterjee and Justice P K Balasubramayam, while allowing CERC’s application, vacated the interim order of Allahabad High Court, which had restrained the power regulator from such overcharging.
The apex court also directed the high court to dispose off the matter expeditiously.
The apex court had on 25 June reserved its verdict on a petition filed by CERC challenging Allahabad High Court’s order staying its notification for hiking charges of unscheduled interchange (UI), known as overdrawal units, from Rs5.70 to Rs7.45 per unit.
Uttar Pradesh Power Corp Ltd (UPPC) and some other state utilities had challenged the notification before the Allahabad High Court on the ground that it was passed in the absence of the quorum of at least two full time members.
CERC counsel U U Lalit had said the notification was issued as a deterrent against drawing utilities, such as UPPC, from overdrawing electricity beyond their respective entitlements which otherwise would lead to collapse of the northern grid and other regional grid systems in the country.
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First Published: Mon, Jul 02 2007. 03 25 PM IST