ELECTRICITY REGULATORY COMMISSION
Floor, SCOPE Complex, Lodi Road, New Delhi – 110 003
In the matter of:
Regulation of power supply to the beneficiaries in case of non-payment of dues of
Central Power Utilities
The issue of regulation of power supply to the beneficiaries in case of
non-payment of dues of Central Power Utilities has been under consideration of the
Commission for quite some time The Commission vide their letter No. L-7/4(3)/99-CERC(i)
dated 16th December, 1999 had directed CTU to forward the procedure for
regulation of inter-state transmission of energy to beneficiaries before 27.12.1999. In
the said letter, the Commission had also directed that till such time the procedure is
submitted to the Commission, CTU should ensure that prior approval of the Commission is
obtained before implementing any proposal for regulation of power supply to the
Subsequently, the Commission received letter from NTPC regarding
regulation of power supply to UPSEB. In view of this letter, the Commission vide their
letter dated 15th February 2000 again directed CTU to prepare the draft generic
procedure for regulation of power supply on technical and commercial grounds and submit to
the Commission as per the procedure prescribed in Chapter Il of the Conduct of Business
Rules of the Commission latest by March 15,2000. The Commission also modified its earlier
directive conveyed vide letter dated 16th December,99 to the extent that
pending the finalisation of the procedure, the CTU was allowed to proceed with the
regulation of power supply as per the existing rules and the procedures.
As CTU failed to submit the draft generic procedure within the
stipulated time, the CTU was granted extension of time first till 30th April
2000 vide letter dated 20th April 2000 and later till May 20, 2000 vide letter
dated 4th May 2000.Regrettably, the CTU failed to adhere to this extended dead
In view of the urgent need to finalise the generic procedure for
regulation of power supply, the Commission had called representatives of the NTPC and CTU
on 8th June 2000. Consequently, the CTU vide their letter No. CDO/52 dated
16.06.2000 forwarded draft generic procedure for regulation of power supply though not as
per the procedure prescribed in the Chapter Il of the Conduct of Business Rules of the
Commission. The procedure for regulation of power supply which has interim approval of the
Commission is enclosed with this Order. This procedure shall be followed till the final
procedure is formally approved by the Commission after hearing the interested parties.
Dated: 21st June, 2000
CENTRAL ELECTRICITY REGULATORY COMMISSION
Core-3, 5th Floor, SCOPE Complex, Lodi Road, New Delhi
– 110 003
ENCLOSURE TO ORDER DATED 21ST JUNE ,2000
GENERIC PROCEDURE FOR REGULATION OF POWER SUPPLY ON COMMERCIAL GROUNDS
- The utility proposing to regulate power supply of the beneficiary for recovery of its
dues shall make a request to the CTU under intimation to Member Secretary of the REB
concerned and the defaulting beneficiary. The CTU shall be responsible for the overall
supervision of the regulation process
- The proposal of regulation shall indicate as to whether the power supply to defaulting
beneficiary would be restricted by reducing the generation at ISGS (Inter-State Generating
Station) or by diverting that power to other beneficiaries. In case of regulation by
POWERGRID to recover their dues, the proposal shall be prepared in consultation with ISGS.
In case the regulation of power supply is to be effected by diverting the power, the
utility shall also hold consultations to identify beneficiaries, which are willing to
absorb additional power.
- The CTU shall evaluate the proposal(s) of regulation depending on the facts and
circumstances of the case within three days of receipt.
- In case, CTU is satisfied with the proposal of regulation, it shall direct the RLDC
concerned to prepare a scheme for regulation of power supply. In case of POWERGRID’s
request, the CTU shall forward the proposal to the Commission for approval prior to
issuance of directive to the RLDC after due evaluation as at (3) above. In case, the CTU
is not satisfied with the proposal it shall record its views and intimate to the utility
- The RLDC shall carry out necessary studies and come out with the scheme of regulation
within five days of receipt of direction from the CTU. The scheme shall:
- Specify the various stages of regulation and duration of each stage.
- Identify the generating stations where generation would be reduced or from where power
shall be diverted to other beneficiaries along with the quantum of reduction/diversion of
power during each stage of regulation.
- Specify the transmission lines/ICTs (Inter Connecting Transformers) which are to be
opened to effect regulation as well as sequence of opening of these elements.
- Outline the precautions to be taken during each stage of implementation of the scheme.
- Mention other aspects, which merit consideration in the opinion of RLDC, including
arrangement for sharing of fixed charges.
- The scheme so prepared by RLDC shall be forwarded to CTU for concurrence and to Member
Secretary, REB for views/suggestions . The CTU and Member Secretary, REB shall
independently examine the scheme from the viewpoint of grid security. In addition, Member
Secretary, REB shall analyse the scheme for effect on sensitive (Defence /Railways etc.)
installation/localities and the consequential impact, if any on international agreements
and other sovereign obligations. The Member Secretary, REB shall communicate the
views/suggestions to CTU within two days of receipt.
- Thereafter, the CTU shall consolidate its views within another two days and communicate
the approved scheme to RLDC.
- The scheme concurred by the CTU shall be intimated to all the beneficiaries/constituents
- The Member Secretary, REB shall, if required, re-allocate the shares of ISGS for
implementation of the scheme.
- RLDC shall then issue instructions under the Section 55 of the amended Electricity
(Supply) Act, 1948 to the defaulting beneficiary for regulating its drawal on its own
(self-regulation) according to the curtailed schedule under intimation to Member-Secretary
REB, and the concerned utility.
- In case the RLDC finds that the defaulting SEB is not responding to the instruction
issued as per (10) above within a reasonable time, the RLDC shall issue instructions for
implementing the approved scheme of regulation. The required action shall be carried out
immediately after 24 hours of issuance of such instructions.
- RLDC shall inform all concerned regarding reduced security level of the regional grid,
if envisaged during period of regulation. RLDC may issue suitable instructions to the
constituents to cope up with the reduced grid security during this period.
- RLDC shall keep the CTU and Member Secretary,REB informed about the implementation of
the scheme of regulation and its effect.
- The CTU shall inform the Commission about the initiation as well as outcome of the
process of regulation.
- Prior permission of the Commission shall not be necessary on case-to-case basis [except
in case of POWERGRID as mentioned at (4) above], so long as the above procedure is
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