Industry & Economy
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Power
States to pay more for overdrawing from grid
Our Bureau
New Delhi
,
April 21
Wielding the stick over States that habitually overdraw from the grid but desist from paying up the ensuing penalties, power sector regulators have asked the Centre to adjust the penalties against their respective Central Plan allocations.
The Forum of Regulators (FOR), an umbrella organisation formed by power sector regulators at the Centre and the States, has asked the Government to act against these "habitually errant" States, which include Madhya Pradesh, Uttar Pradesh and Jammu and Kashmir.
Following the conclusion of a two-day meeting of the Forum here, Central Electricity Regulatory Commission, Mr A.K. Basu, said the Forum has decided to set up two expert groups to deliberate on issues such as the concept of distribution margin as the basis for allowing returns in the distribution business and also the return of equity and operating norms for the distribution sector.
The Forum also delved on lowering costs associated with harnessing of surplus captive power generation, rising cost of traded power and consumer advocacy mechanism. The Forum favoured setting up consumer cell within each State Electricity Regulatory Commission for better compliance of performance standards and consumer redressal.
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