DERC imposes a penalty of 1.68 crore on Reliance company [Punjab Newsline, 06 November 2009]

Submitted by admin on Mon, 09/11/2009 - 7:56am

Punjab Newsline

VINOD KUMAR GUPTA
Friday, 06 November 2009
NEW DELHI: Delhi Electricity Regulatory Commission (DERC) has imposed a penalty of Rs. 1.68 crores on Reliance Company BSES Rajdhani Power Ltd for recklessly over drawing power from the grid at low frequency and resorting to heavy load shedding in June this year DERC has also imposed an additional fine of Rs.1 lakh on the companys then Chief Executive Officer for managerial failure.

DERC imposed a penalty of Rs. 25000 for every violation of grid code made by the power utility. There were 672 violation of overdrawing power from the northern grid when the system frequency was below 49.5Hz in the month of June this year. The penalty is to be deposited by the company before November 15 this year.

The power utility was resorting to over drawl of power from grid instead of arranging power from other sources. DERC order also reprimanded the power utility for not paying heed to the State Load Dispatch Centers (SLDC) notices to maintain grid discipline and not making sufficient efforts to arrange enough power for the city and asked them to submit fortnightly reports in future.

DERC took up the matter after Delhi government asked the commission to look in to the matter of excessive load shedding by the private companies and strong criticism by the power consumers and various stake holders. Delhi government also requested to impose exemplary punishment for any deficiency on the part of power utility.

It was found by the commission that in June this year all the three distribution licensees (BRPL, BYPL and NDPL) put together claimed to have done total load-shedding of 32.655 million units on account of shortage of power, out of which BRPL alone had done load-shedding to the tune of 24 million units, mainly because of inadequate arrangement of power by it.

DERC found that load shedding carried out in June; BRPL mainly depended on over drawal of power from the grid, far in excess of that permitted under Grid Code to meet the shortage of power. After investigation DERC issued a notice to BRPL to explain the reasons for the unprecedented load-shedding and to show cause why action should not be taken against it for failure to maintain grid discipline and indulging in persistent over drawl from the grid and also for suspension of distribution license under Electricity Act, 2003.

The notice was also issued to the then CEO of company for his failure to exercise due diligence which led to the unprecedented load shedding.

SLDC brought out to the notice of commission that grid code prescribes 15 minutes as the time block to be followed by various constituents for all operational purposes. Accordingly, over drawal for each 15-minute time block is treated as one violation. DERC has held BRPL guilty of 672 violations. It may be mentioned that CERC had fined earlier various power utilities in the country a penalty of Rs. One lakh for every violation of overdrawl when the system frequency was below 49.5 Hz

The commission dismissed the claim of BRPL that it was not able to procure power because of shortage of power through out the country. The order mentions that the commission investigated and found out that there was power available and the other discoms had purchased it, but BRPL did not make any serious effort to procure power on day ahead basis from the power exchanges in the country despite caution notices they carried out grid violations rampantly.

The commission has also issued notices to other companies for grid violations.