CERC cuts off power to PTC

NEW DELHI: In an order that could stop trader-to-trader sale of electricity, the Central Electricity Regulatory Commission (CERC) has restrained state-owned Power Trading Corporation (PTC) from buying power from any electricity trader, including Gridco.

The commission has also annulled all contracts between PTC and electricity traders for power purchase, since they were in contravention of inter-state trading regulations of the commission.

PTC executives said they were yet to evaluate the verdict. “The definition of trader is not very clear,” said a senior executive.  Refuting the statement, CERC chairman AK Basu said the Electricity Act clearly defined it.

“The order is with the interest of consumers and electricity sector,” said Basu.  Orissa companies are producing power at around Rs 1.20 a unit, but it is bought in Delhi for Rs 4.60.

It clarified the meaning of the term agreement, appearing in the regulations for inter-state trading issued by the commission. “The commission has said that a trade agreement necessarily excludes the electricity traders from being seller of electricity to another trader,” said a CERC statement.

 “An electricity trader can buy electricity from a generating company or a distribution licensee and, in turn, sell the same to a distribution licensee,” said the commission. Basu said PTC could appeal against the order before a higher judicial authority. 

While disposing of the petition in the matter of Gajendra Haldea and PTC India, CERC said it agreed with Haldea’s contention that the prices of electricity can be artificially jacked up by two or more traders joining hands