CTU asks MeECL to clear outstanding dues of Rs 23 Cr within 6 days, failing which regulation of power will commence from Aug 31

Syllad | The Rising MeghalayaAugust 21, 2021

The Central Transmission Utility of India (CTU) has asked Meghalaya Energy Corporation Limited (MeECL) to clear the outstanding dues of Rs 23 crore within six days, failing which power supply will be regulated from August 31. 

In a notice issued to the MeECL Chairman-cum-Managing Director (CMD) RV Suchiang on August 19, CTU Chief General Manager J Mazumder has expressed concern over the failure of the MeECL to clear the full dues against the monthly bills raised on it towards transmission tariff despite regular follow-up by CTU. 

He said as a consequence, total dues of MeECL have grown to a huge amount of Rs 31.67 Cr as on date, out of which an amount of Rs 23.06 Cr is outstanding for >45 days based on the bills already raised by CTU. 

CTU has been mandated with the responsibility of Billing, Collection and Disbursement of transmission charges towards ISTS licensees from all the DICs. 

MeECL is a designated Inter-State Transmission System customer (DIC) who is availing Inter-state Transmission System (ISTS) network for transfer of power from various power plants located in different parts of the country to MeECL and is under obligations to make timely payment of transmission tariff and to open requisite Letter of Credit towards Payment Security Mechanism in line with the Electricity Act 2003 and provisions of CERC Regulations. 

According to him, such huge outstanding dues as brought out above is quite alarming and is causing serious impact to fulfill our obligations towards all the ISTS Licensees. 

Mazumder said as per the provisions of Regulation 4 of CERC (Regulation of Power Supply) Regulation 2010 and amendment thereof, provisions of BCD procedure and terms of TSA, the CTU is constrained to issue this “Notice of Regulation of Power Supply”.

“Accordingly, in case of failure of MeECL to clear the total outstanding dues >45 days latest by August 26, the regulation of power supply of MeECL through their Long Term Access shall be effected…,” he said.

He informed that the quantum of power to be regulated is 50 MW of power drawl of MeECL from ISTS network while adding that the commencement of regulation of supply will be from 00.00 hrs of August 31.

He further added that the period of regulation of power supply will initially be for one month or till clearing of the entire dues outstanding for >45 days. 

The source of regulation of power supply will be from various power plants of NEEPCO, NHPC & NTPC from which MeECL has allocation of power under Long Term Access, the quantum shall be in proportion of the allocation from NEEPCO, NHPC & NTPC may be decided by NERLDC based on merit order of despatch. 

The regulation of power shall be carried out through North Eastern Region Transmission Corridor and all other liabilities of MeECL shall be as per provisions of CERC Regulations. 

“Through a copy of this notice, NERLDC is being requested to prepare implementation plan for Regulation of Power Supply of MeECL & implement the same with effect from 00.00 hrs of August 31 upon confirmation by us on August 27. 

In view of above, it is requested to liquidate the outstanding dues >45 days by August 26 failing which regulation of power supply shall be enforced as stipulated above,” the CTU official stated in the notice.