CERC disallows recovery of additional UI charges from consumers
(Vinod Kumar Gupta)

Publication Date 28/7/2009

New Delhi: Central Electricity Regulatory Commission (CERC) has disallowed the recovery of additional unscheduled charges from consumers. CERC in its latest order has disallowed the recovery of additional UI charges from the consumers but the power utility has to bear the charges. This orders comes in to effect from August 1 next.
CERC has taken this decision in light of recommendation of a parliamentary committee report. The report has suggested that power utility should assess its requirements in advance and any over drawl by the utility where the penalty is imposed for over drawl should not be allowed to recover from consumers. According to official sources it means when ever the system frequency goes below 49.2 Hz the penalty imposed by way of higher rates to the tune of Rs. 10.29 per unit against maximum rate of Rs. 6 per unit, the difference in rates can not be distributed amongst consumers. This would deter the power utility from over drawl during low frequency period and utility would be forced to start new projects and improve its efficiency.