PDD directed to pay 138 cr to NRLDC before Jan 31

JK Power Development Department has been asked to pay Rs 138 crore to the Northern Regional Load Despatch Centre (NRLDC) on or before January 31 on account of reactive energy charges and deviation charges.
PDD directed to pay 138 cr to NRLDC before Jan 31

JK Power Development Department has been asked to pay Rs 138 crore to the Northern Regional Load Despatch Centre (NRLDC) on or before January 31 on account of reactive energy charges and deviation charges. 

The Central Electricity Regulatory Commission (CERC) has set the January 31, 2017 deadline to the J&K Power Development Department (PDD) for clearing the remaining liabilities of the Northern Regional Load Despatch Centre (NRLDC) on account of the reactive energy charges and deviation charges.

The Central Electricity Regulatory Commission (CERC), while disposing off a petition filed by NRLDC seeking recovery of these charges, has directed the PDD to liquidate the outstanding dues by January 31, alongwith the current dues, if any.

"As on 15.12.2016, an amount of Rs. 138.18 crore is outstanding against PDD towards reactive energy charges and deviation charges," the order quotes NRLDC officials as saying.

In the past, JK Government has come under sharp criticism for failing to liquidate the liabilities of NRLDC.  The PDD was severely criticized by CERC as well as in the meetings of Northern Regional Power Committee (NRPC) for dilly-dallying on clearing the outstanding dues.

According to officials, the PDD's failure to install capacitors at different levels is responsible for flow of reactive energy. "The huge reactive energy flow not only drains state exchequer but also causes damage to consumers' appliances," they said. They said the deviation charge is a sort of penalty for excess drawl of power than the scheduled allocation. The CERC directions came even as State Government recently paid Rs 312 crore to NRLDC for these charges which had accumulated to over Rs 450 crore.

In the order, the CERC has made it clear that NRLDC is at liberty to take appropriate action for recovering the dues from JK Government.

" In case of default in payment of deviation charges and reactive energy charges, NRLDC is at liberty to take appropriate action in accordance with the law to ensure payment of the dues by PDD," the 4-page order passed by CERC on December 27, reads.

The quasi-judicial body has also directed the PDD to ensure timely payment of these charges to avoid imposition of penalties.

"We intend to emphasize that PDD being a constituent and beneficiary of the Northern Regional Grid carries a duty and responsibility to liquidate the outstanding dues towards reactive energy charges and deviation charges. Timely payment of the deviation charges and reactive energy charges will not only help in settlement of the accounts by NRLDC among the constituents of the Northern Region, but will also save PDD from payment of the late payment surcharges," the order reads.

"Therefore, the Commission expects PDD to ensure that the reactive energy charges and deviation charges are liquidated as and when they are due".

In case of default in payment of deviation charges and reactive energy charges, NRLDC is at liberty to take appropriate action in accordance with the law to ensure payment of the dues by PDD

— Central Electricity Regulatory Commission

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