CENTRAL ELECTRICITY REGULATORY COMMISSION Vs. POWER DEVELOPMENT DEPARTMENT AND SECRETARY, POWER DEVELOPMENT DEPARTMENT

JUDGEMENT

(1.) AS per clause (4) of Regulation 10 of the Central Electricity Regulatory Commission (Unscheduled Interchange Charges and related matters) Regulations, 2009 (UI Regulations), all the regional entities which had any time during the previous financial year failed to make payment of UI charges payment of UI charges are required to open a Letter of Credit (LC) equal to 110% of its average payable weekly UI liability in the previous financial year, in favour of the concerned RLDC within a fortnight from the date these regulations came into force. Since, the UI Regulations came into force on 3.5.2010, the regional entities were required to open LC by 17.05.2010. Moreover, the regional entities who had failed to make payment of UI charge including additional UI charge within the stipulated period during 2010 -11 were required to open the LC within a fortnight from the due date of payment. Accordingly, the Commission in its order dated 1.12.2011 had observed as under:

(2.) IN response to show cause notice dated 1.12.2011, the respondent Jammu and Kashmir neither had filed any reply nor had entered appearance in person or through advocate. The Commission vide its subsequent order dated 30.8.2013 had further observed as under: