SUO MOTU REVIEW BY THE COMMISSION Vs. TRIPURA STATE ELECTRICITY CORPORATION LTD. AND REGIONAL LOAD DESPATCH CENTRE

JUDGEMENT

(1.) THE Commission by its order dated 22.8.2012 directed the respondents including, Tripura State Electricity Corporation Ltd. (TSECL) to show cause as to why action under Section 142 of the Electricity Act, 2003 should not be taken against them for non -compliance of the provisions of Regulation 10(4) of the UI Regulations for not opening the Letter of Credit for the amount required under the regulations. In response to show cause notice, TSECL had not filed its reply. Based on the NERLDC information to the effect that TSECL has opened LC for insufficient amount, the Commission vide its order dated 5.11.2012 imposed a penalty of Rs. 90,000 on TSECL for non -compliance of the Regulation 10(4) of the UI Regulations. TSECL in its affidavit dated 28.11.2012 has submitted that TSECL has been found overall in the status of receivable from pool after adjustment of payable to UI pool. TSECL always complied with the direction of Commission and provisions of UI Regulations provided NERLDC declares the increase/decrease in amount from time to time. It has been further submitted that TSECL had opened LC of Rs. 11.83 lakh based on declared value by NERLDC and therefore, the same should not be considered insufficient based on the then average payable weekly UI liability. In the circumstances, the respondent TSECL has prayed that the order dated 5.11.2012 may be reviewed and TSECL may be exempted from payment of said penalty.

(2.) THE matter has been examined. Regulation 10(4) of the UI Regulations provides as under:

(3.) ONCE the mechanism of LC is enforced strictly at the first instance of default by the utilities, it will ensure that the UI receivables by the utilities can also be paid on time or can be easily set off by NERLDC against the payment which are required to be made to such utilities. NERLDC has submitted that before expiry of the existing LC of Rs. 11.83 lakh, TSECL has been advised vide letter dated 1.10.2012 to enhance LC amount to Rs. 97.20 lakh based on 110% of the payable weekly liability in any week during the year, as it exceeded the earlier LC amount by more than 50%. In response, TSECL has submitted that it has not received the said letter dated 1.10.2012 for enhancing LC amount to Rs. 97.20 lakh. These appears to be communication gap between NERLDC and TSECL. Since TSECL has opened the LC for a lesser amount on the basis of its bona fide understanding of the Regulation 10(4) of UI Regulations and has net receivable from the UI pool, as a special case, we waive the penalty of Rs. 90,000/ - imposed on TSECL in our order dated 5.11.2012. It is however, made clear that the TSECL shall revise the LC amount of Rs. 97.20 lakh in terms of the second proviso to Regulation 10(4) of the UI Regulations and submit the same within a period of 15 days from the date of this order. The TSECL is directed to comply with UI Regulations in letter and spirit in future.