CERC asks power generating cos to pay fines for unused transmission lines

This development comes at a time when the thermal power sector is saddled with 40,000 MW of stressed assets

Stranded power-generating projects will now have to bear the cost of abandoning the allied transmission system. 

In its latest order, the Central Electricity Regulatory Commission (CERC) directed power-generating companies (gencos) to pay the transmission and relinquishment char­ges for the stranded transmission capacity resulting on acco­­unt of the abandoned projects. 

This comes at a time when the thermal power sector is saddled with stressed assets of 40,000 Mw. Of this, close to 11,000 MW does not have a power purchase agreement (PPA) with any state. 

This makes them the first contender to pay relinquishment charges for abandoned lines, as they are not using it