Mohinder Verma
JAMMU, July 25: The Power Development Department, which always remain in the oblivion until the situation turns worst, has received rap on the knuckles from the Central Electricity Regulatory Commission (CERC) for its failure to comply with the latter’s order despite repeated reminders. Now, the Commission has issued show cause notice to the Secretary of the Department to explain as to why action under Electricity Act be not taken against him and the department.
As per Clause (4) of the Regulation 10 of Unscheduled Interchange Charges and Related Matters, Regulations, 2009 of Central Electricity Regulatory Commission, 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.
Such Letter of Credit is to be opened in favour of the concerned Regional Load Dispatch Centre within a fortnight from the date these regulations came into force.
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.
Since the UI Regulations came into force on May 3, 2010, the Power Development Department of State Government 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.
Accordingly, the CERC in its order dated December 1, 2011 observed, “as J&K has failed to comply with the provisions of the UI Regulations, the Power Development Department of the State and its Secretary are directed to show cause by December 20, 2011 as to why appropriate actions under Section 142 of the Electricity Act, 2003 should not be taken against them for non-compliance of the provisions of 10(4) of the UI Regulations”.
Much to the surprise of the CERC, Jammu and Kashmir neither filed any reply nor anybody from the State appeared in person or through advocate. Taking serious note of this, the CERC vide its order dated August 3, 2012 imposed penalty of Rs one lakh on J&K with the direction to deposit the same within 15 days.
“As even imposition of penalty failed to awake the PDD officers from the deep slumber, two members of the Commission— M Deena Dayalan and V S Verma were compelled to issue final show cause notice to the Power Development Department through its Secretary”, sources said.
In the latest order, the members of CERC have mentioned, “the J&K PDD has not complied with the directions issued on December 1, 2011 and August 30, 2012 in Suo-Moto Petition No.21/2011 despite issue of reminders dated November 7, 2012 and April 8, 2013. Now the notice is issued to PDD Secretary as to why action under Section 142 of the Electricity Act should not be taken for his failure to deposit penalty”.
The Commission has listed the matter for further directions on August 13, 2013, sources said, adding “now, in case PDD fails to ensure compliance of the latest orders, CERC would impose penalty for each and every contravention and per day additional penalty”.
Section 142 of the Electricity Act states: “In case any complaint is filed before the Commission by any person or if Commission is satisfied that any person has contravened any of the provisions of the Act or the Rules or Regulations, or any direction issued by the Commission, it (Commission) may after giving such person an opportunity of being heard direct that, without prejudice to any other penalty to which he may be liable under this Act, such person shall pay, by way of penalty, which shall not exceed Rs one lakh for each contravention and in case of a continuing failure with an additional penalty which may extend to Rs 6000 for every day during which the failure continues after contravention of the first such direction.
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