HC dismisses TNGEDCO's plea against CERC regulations

Justice M Jaichandren made the observation while dismissing writ petitions by TANGEDCO seeking to quash the March 5, 2012 CERC (Unscheduled Interchange Charges and Related Matters) (Second Amendment) Regulations and the CERC (Indian Electricity Grid Code) (First Amendment) Regulations.

"The petitioner ought to have long-term and medium-term plans, along with short-term plans, to buy power from various power generators. If long-term and medium-term contracts are made, the cost of power would also be at a lower rate, as compared to short-term plans," the Judge said.

TANGEDCO had submitted that by the impugned amendments CERC had narrowed down the operating frequency of electricity supply by 0.2 Hertz in the grid code as well as in the Unscheduled Interchange (UI) charges and related matters.

The amendments were aimed only at promoting sale of power by power traders and exchanges and would result in higher rates being paid for the power purchased from private generators at the cost of end users, it had contended.

CERC had submitted that overdrawal of power from the grid to meet consumer demand was not in the interest of grid security and grid discipline. The utilities should plan for procurement of power to meet consumer demands.

TANGEDCO was found to be overdrawing power on several occasions in the past in violation of permissible limits. Penalties had been imposed on it for overdrawal. The petitioner had also defaulted in payment of UI dues, it said.

"In fact, the power cut in the state of Tamil Nadu is a result of the cumulative and prolonged inaction on the part of the petitioner to make the necessary arrangements, to supply sufficient power, considering the consumer demands in the state, by procuring sufficient power from the various power generating and transmitting agencies," CERC had said.

The judge said the impugned regulations had been introduced to bring about grid discipline among electricity users, like the petitioner corporation and after following all necessary procedures.

Overdrawal of power from the grid by its users to meet consumer demand was not in the interest of grid discipline and grid security. It was for the utilities like TANGEDCO to plan for procurement of power.

TANGEDCO had not been able to show that the impugned regulations were arbitrary and unreasonable, the Judge held in a recent order and dismissed the petition.