Govt asks CERC to amend Sharing of Inter-State transmission charges under Regulation Act 2020

The government has invoked special powers to direct electricity regulator to make changes in regulations freeing power plants delayed due to justifiable reasons from paying penalties to associated transmission projects.

The penalties would now be borne equally by all beneficiary discoms of a generation project, as per the directions issued by the Union power ministry to the Central Electricity Regulatory Commission (CERC) under section 107 of the Electricity Act 2003. While power generation and transmission companies welcomed the relief, distribution companies said the move asking them to pay for delay in generation projects came as a shock to them. 

“Penalties for delay in COD (commissioning) of generating stations, or for delay in completing transmission system, or operationalising the LTA (long-term agreement) shall invite penalties to be paid to CTU (central transmission utility). The penalties shall be equitable; and shall not extend to compensating either the Generation companies for power it could not despatch because of delay in transmission or to compensate the transmission company for the delay in generation or the associated transmission,” the central government directions to CERC to amend Sharing of Inter-State Transmission Charges and Losses Regulations, 2020 said.

 The directions said events of force majeure may be defined by CERC and provision included enabling the CTU to extend the commissioning of a generating station.