August 30, 2008

CERC issues notices to UP and J&K power utilities

It is reported that the Central Electricity Regulatory Commission has issued show cause notices to state owned power utilities of Uttar Pradesh and Jammu & Kashmir for failing to pay the cumulative arrears of INR 988 crore on account of overdrawing from the grid.

CERC in a release said “CERC has issued show cause notices to UPPCL and Power Development Department to explain by November 25th 2007 why action should not be initiated against them for recovery of outstanding dues on account of unscheduled inter change charges.”

As per report, Uttar Pradesh Power Corporation Limited has an outstanding principal amount of INR 577.99 crore and Jammu & Kashmir’s Power Development Department has to pay INR 410.25 crore as principal for the period up to September 2nd 2007. The arrears would further increase after addition of interest at a rate of 1.5% per month on the principal amount.