Default in payment of Unscheduled Interchanges (UI) charges for the energy drawn in excess of the drawl schedule by UPPCL....

 

CERC directed the Uttar Pradesh Power Corporation Limited to submit payment plan of outstanding UI charges to NRLDC including interest due on affidavit by 11th November 2013.

Uttar Pradesh Power Corporation Limited submitted to CERC that it has paid 50% of the outstanding Unscheduled Interchanges (UI) charges by 31.10.2013 and the remaining 50% would be paid by the month of March, 2014 in equal monthly installments.

NRLDC has also confirmed the payment of 50% of the outstanding UI Charges by UPPCL. 

In response to the Commission’s query on the stay by the Hon`ble High Court of Allahabad of 40% UI charges, the representative of NRLDC clarified that stay is still continuing and an amount of ` 371 crore is covered under the stay order.

UPPCL submitted that pursuant to the Financial Restructuring Plan, UPPCL has arranged loans from the banks and made payment for 50% of the outstanding UI charges.

They further submitted that the balance outstanding UI charges would be liquidated in equal monthly installments by 31.3.2014. He further submitted that the outstanding UI charges contained the surcharge of an amount of Rs. 114 crore. As per Commission's direction, a meeting was held with NRPC and the constituents of Northern Region for waiver of late of payment surcharge.

However, none of the recipient constituents has agreed to waive the interest on late payment of UI charges.

UPPCL further submitted that the surcharge of Rs. 114 crore may be waived by the Commission in exercise of power of relaxation under Regulation 12 of UI Regulations and argued that in the past, the Commission has exercised its power of relaxation in other cases and has granted relief to the aggrieved parties.

However, the Commission observed that the request of UPPCL is against the provisions of the UI regulations and would set a precedent for others to make similar requests. The Commission further observed that since the surcharge is payable to the other constituents of the Northern Region, UPPCL has the liberty to take up the matter with the constituents to reimburse the interest portion after the payment dues are cleared by UPPCL with interest.