CERC threatens 13 power companies with licence cancellation
Our Corporate Bureau
04 July 2005
New Delhi: The Central Electricity Regulatory Commission (CERC) has threatened to cancel the licences of 13 companies including Tata Power, Reliance Energy, NTPC and PTC India, charging them with non-compliance of licence norms for inter-state trading in power.
As per the licence agreement for inter-state trading in electricity, all the companies have to submit quarterly information to the regulator as well as to the 'regional load dispatch centre' and 'regional electricity board'. However, the regulator observed that these trading companies have not been submitting the information regularly to the authorities and asked for their explanations.
The CERC has rapped the trading companies for not submitting the required information every quarter to the power regulator and has now issued notices to the companies asking them why their licences should not be revoked for non-compliance of licence conditions.
The CERC has also questioned Delhi-based PTC India (formerly Power Trading Corporation of India Ltd) and Ahmedabad-based Adani Exports Ltd over the high trading margins being obtained by them. While trading margins in case of PTC was 30 paise per unit (kilowatt hour), for Adani it was even higher at 36 paise per unit.
Commission has given the companies time till July 15 to
file their reply.
The regulator has also issued notices to Adani Exports Ltd, DLF Power Ltd, Jindal Steel & Power Ltd, Sumex Organix Pvt Ltd, Lanco Electricity Utility Ltd, GMR Energy Ltd, Chhatisagarh Electricity company Ltd and Karam Chand Thapar & Bros Ltd.