IN RE: TAMIL NADU GENERATION AND DISTRIBUTION CORPORATION LTD, CHENNAI AND CHAIRMAN-CUM-MANAGING DIRECTOR, TAMIL NADU GENERATION AND DISTRIBUTION CORPORATION LTD. Vs. STATE

JUDGEMENT

(1.) IT was noticed from the report of Southern Regional Load Despatch Centre that an amount of Rs. 29.00 crore including surcharge was outstanding against the Tamil Nadu Generation and Distribution Company Ltd. (TANGEDCO) on account of arrears of Unscheduled Interchanges (UI) charges as on 31.5.2011. The Commission in its order dated 12.7.2011 had directed First and Second respondents to show cause under Section 142 of the Electricity Act, 2003 for non -compliance of the provisions of the Central Electricity Regulatory Commission (Unscheduled Interchange charges and related matters) Regulations, 2009 (hereinafter referred to as ' UI regulations). The Commission in its order dated 21.10.2011 had directed as under:

(2.) DURING the course of hearing on 15.11.2011, the learned counsel appearing for the respondents had submitted that the respondents had deposited the outstanding UI dues along with the penalty imposed by the Commission. We had during the hearing on 21.10.2011 issued direction for personal appearance of Chairman -cum -Managing Director of TANGEDCO on the next date of hearing to understand the reasons for persistent default in making UI charges payments and to share our concern about the consequences of such default on the grid discipline.

(3.) WE have heard Shri Rajeev Ranjan, Chairman and Managing Director of TANGEDCO. It has been submitted that the power available with TANGEDCO from various sources is insufficient to meet the consumer load in the State and therefore, TANGEDCO is overdrawing from the grid and further TANGEDCO was unable to procure power through Power exchanges due to transmission constraints. As regards the default in payment, it has been submitted that due to non - revision of tariff of the distribution company, TANGEDCO is facing acute financial crunch which has resulted in default in payment of the UI charges.