CHHATTISGARH STATE POWER DISTRIBUTION CO. LIMITED Vs. MADHYA PRADESH POWER MANAGEMENT CO. LTD., WESTERN REGIONAL POWER COMMITTEE AND WESTERN REGIONAL LOAD DESPATCH CENTRE

JUDGEMENT

(1.) THE petitioner, a successor of the erstwhile Chhattisgarh State Electricity Board constituted under section 5 of the Electricity (Supply) Act, 1948 read with Section 58 of the Madhya Pradesh Re -organization Act, 2000 to act as the Electricity Board for the State of Chhattisgarh, seeks adjudication of the dispute arising out of the implementation of the mechanism with regard to reactive energy charges specified in Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010 (Grid Code) amended from time to time. The petitioner has sought the following specific reliefs, namely: -

(2.) THE Commission notified the Indian Electricity Grid Code, 2006 (Grid Code, 2006) which came into effect from 1.4.2006. Regulation 6.6 of the Grid Code, 2006 provides as under:

(3.) THE petitioner has submitted that the present petition has been filed for implementation of the mechanism for reactive energy charges specified in the Grid Code and payment of such charges by the Respondent No. 1 for the period from 1.4.2006 onwards. The petitioner has submitted that reactive energy is required to be minimized so as to reduce the losses and bring efficiency in the system. The petitioner has submitted that Regulation 6.6 of the Grid Code, 2006 set out the mechanism for reactive power pricing and also provides for payment of charges towards reactive energy for which accounting is done by the concerned RLDC. The petitioner has submitted that Regulation 6.6 of the Grid Code, 2006 also provides for settlement of reactive energy charges and accordingly, the Respondent No. 1 has to pay the reactive energy charges for its drawal during voltage conditions of grid to the petitioner for supplying the same reactive energy during that period. The petitioner has submitted that Regulation 6.6 and Annexure 1 to Chapter 6 of the 2010 Grid Code also provides for reactive energy pricing mechanism and complementary commercial mechanisms, respectively in line with Grid Code, 2006. In terms of Chapter 6 of the Grid Code, the defaulting constituents are required to pay simple interest @ 0.04% for each day of delay and in case of persistent payment default towards reactive energy charges, the matter is to be reported by RLDC to Member -Secretary, Regional Power Committee for initiating remedial action.