Mohinder Verma
JAMMU, Dec 2: Under threat of losing whopping amount under Central Plan Assistance, the State Government has finally met the deadline fixed by the Central Electricity Regulatory Commission (CERC) and cleared Rs 435 crore outstanding Unscheduled Interchanges (UI) charges for the energy drawn in excess of the schedule.
Official sources told EXCELSIOR that Power Development Department has cleared the outstanding Unscheduled Interchanges charges by depositing an amount of Rs 435 crore in the Northern Region UI Pool account and at present nothing is outstanding against Jammu and Kashmir as far as such charges are concerned.
“The UI charges and interest on the same got accumulated to Rs 435 crore as no serious attention was paid towards clearing the dues for the energy drawn in excess of the schedule during the past five-six years”, sources said, adding “coughing up such a huge amount in one go had become compulsion for the State Government as the Central Electricity Regulatory Commission, while expressing serious concern over the dilly-dallying tactics of the Power Development Department of J&K Government in clearing the outstanding UI charges, had given warning to the State Government on November 5, 2012”.
The CERC had made it clear to the Power Development Department to clear the outstanding dues by November 30, 2012 failing which Union Finance Secretary would deduct the amount from the Annual Central Plan Assistance to the State.
“As there was no other option but to clear the outstanding UI charges, the Power Development Department knocked the doors of the Finance Department for necessary and timely assistance to avoid embarrassing situation for the State”, sources said, adding “though the Finance Department has extended necessary financial assistance to clear the outstanding UI charges, it has issued explicit directions to the Power Development Department to avoid such situation in future”.
According to the sources, the Finance Department has conveyed to the Power Development Department not to expect any assistance in case UI charges are imposed in future. “Instead of resorting to over drawl of energy the Power Development Department should maintain grid discipline and ensure revenue realization strictly as per the consumption of energy”, sources added.
It is pertinent to mention here that UI is a pool account. The States over-drawing from the grid in deviation of their schedule are required to pay the prescribed UI rates to the UI pool account and the States under-drawing from the grid or the generators, which have been injecting into the grid, shall get payment from the UI pool account at the prescribed rate. The default in payment by any State defeats the self-regulating mechanism of UI.
Disclosing that during the current financial year the Power Development Department has not gone for major drawl of energy in excess of schedule, sources said, “situation vis-à-vis UI charges would have been more worrisome had the Chief Minister, Omar Abdullah, who is also holding the portfolio of Power Development Department, not granted Rs 200 crore additional financial allocation to the Department during acute summer this year”, adding “it was only due to additional procurement of electricity that energy in excess of schedule was not drawn”.
In response to a question, sources said, “not only the Finance Department even the Chief Minister has also directed the Power Development Department to strictly maintain grid discipline to avoid UI charges”.
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