PDD not amenable to CERC jurisdiction, claims J&K Govt

Mohinder Verma
JAMMU, Aug 21: In a step, which could create major embarrassment for State Government, the Power Development Department (PDD) has conveyed to the Central Electricity Regulatory Commission (CERC) that J&K PDD is not amenable to the jurisdiction of Commission. This stand has been taken by the Principal Secretary of the Department despite being aware of the fact that J&K is one of the constituents of Northern Grid whose disputes can be adjudicated only at the CERC.
The response was filed by the Power Development Department in a petition before the Central Electricity Regulatory Commission regarding default on the part of the PDD in opening a Letter of Credit in accordance with CERC (Unscheduled Interchange Charges and Related Matters) Regulations.
As per Clause (4) of the Regulation 10 of Unscheduled Interchange Charges and Related Matters, Regulations, 2009 of CERC, all the regional entities, which had any time during the previous financial year failed to make payment of UI charges, are required to open a Letter of Credit equal to 110% of its average payable weekly UI liability in the previous financial year.
It is pertinent to mention here that UI is a pool account and the states over-drawing from the grid in deviation of their schedule are required to pay the prescribed UI rates to the UI pool account and the states under-drawing from the grid or the generators, which have been injecting into the grid, shall get payment from the UI pool account at the prescribed rate.
The Power Development Department of J&K was required to open Letter of Credit by May 17, 2010. However, the PDD authorities remained in oblivion for quite long time and failed to ensure compliance, official sources told EXCELSIOR. This prompted the CERC to issue notice on December 1, 2011 asking the J&K PDD to show cause as to why appropriate actions under Section 142 of the Electricity Act, 2003 should not be taken against it for non-compliance of the provisions of 10(4) of the UI Regulations.
However, PDD neither filed any reply nor anybody appeared in person or through advocate before the CERC, which while taking serious note of this, imposed penalty of Rs 1 lakh on J&K vide order dated August 3, 2012 with the direction to deposit the same within 15 days. But again there was no response from the PDD as a result of which the CERC last month issued notice to PDD Principal Secretary to explain as to why action under Section 142 of the Electricity Act should not be taken for his failure to deposit penalty amount, sources said.
In the latest hearing before the CERC, the counsel for the PDD submitted that the Electricity Act, 2003 doesn’t extend to the State of Jammu and Kashmir and therefore, J&K PDD is not amenable to the jurisdiction of CERC. In this regard, he submitted that he had taken instructions from Principal Secretary, Power Development Department of J&K. He further submitted that notwithstanding his submission with regard to jurisdiction of CERC, the matter was receiving consideration of PDD.
Taking serious note of the stand taken by the counsel for the PDD, the Commission has directed the Principal Secretary, PDD to file his response to the notice dated July 18, 2013 and submission made by the counsel during the hearing on affidavit by August 30, 2013. The Commission has now listed the petition for hearing on September 10, 2013.
“The stand taken before CERC seems to be illogical in the light of the fact that J&K PDD has been strictly adhering to the CERC directions till date”, sources said. “It is not understandable as to how the PDD says it is not amenable to the CERC jurisdiction despite the fact that J&K is among the 25 constituents of the Northern Grid and all the disputes among the constituents of Northern Grid are settled before CERC only”, sources added.
It is pertinent to mention here that in the past J&K Government had to clear huge amount of UI charges on the directions of the CERC, whose functions is to regulate the inter-State transmission of electricity; determine tariff for inter-State transmission of electricity; adjudicate upon disputes involving generating companies or transmission licensee; enforce the standards with respect to quality, continuity and reliability of service by licensees and fix the trading margin in the inter-state trading of electricity.

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