KSEB Officers' Association

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The Central Electricity Regulatory Commission (CERC) has slapped a penalty of Rs 1.22 crore on AP Transmission Corporation (Transco) and other power utilities for grid indiscipline. Surprisingly, the power utilities in the state violated the Indian Electricity Grid Code (IEGC) on 122 occasions in April. However, customers need not worry as the power utilities will not pass on the penalty to them.

Interestingly, AP is not the only state to be penalised for overdrawing power. Tamil Nadu's power utilities were asked to pay Rs 1.5 crore as penalty. Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, Goa and Pondicherry come under the Southern Regional Grid Board.

The CERC, a statutory body functioning under the Electricity Act 2003, imposed the penalty for violation of IEGC provisions which require power utilities to undertake load shedding for curtailing overdrawal whenever the grid frequency goes below 49 Hertz (Hz). The threshold frequency was raised to 49.2 Hz by CERC from April 1, 2009. As per the code, a penalty of Rs one lakh would be imposed for every half an hour of continuous overdrawing.

A senior AP Transco official admitted that they had received the intimation in mid-May for overdrawal in April. "Prior to gas-based power generation in Andhra Pradesh, there was a huge demand due to the rabi crop and summer. Since we exceeded the drawls from central utilities in April to meet the spiralling demand, we got it back from the commission in the form of penalty," the official said.

However, the Commission, which after going through data on the record and finding the explanation given by the companies unsatisfactory, has ordered imposition of penalty under Section 142 of the Electricity Act, 2003. However, it has not set a timeframe for payment of the penalty.


According to an official from the Central Power Distribution Company Limited (CPDCL), the fall of frequency level even in one state could lead to grid disturbance leading to a black out. Restoration of the power supply might take at least half a day.

The state power utilities, including AP Transco and Central Power Distribution Company Limited (CPDCL), Eastern Power Distribution Company Limited (EPDCL), Southern Power Distribution Company Limited (SPDCL) and Northern Power Distribution Company Limited (NPDCL), would have to bear the huge penalty proportionately. The Southern Regional Grid Board at Bangalore, warns them whenever frequency falls below 49.2 Hz.

"We are working out on who has to pay and how much," a CPDCL official said.The maximum penalty in such instances would be imprisonment of concerned officers as per the code.

Source - Times of India