The Commission, vide its order dated 12.6.2009 directed the respondent to show cause as to why it should not be held guilty of contravention of and non-compliance of the provisions contained in paragraphs 5.4.2 and 6.4.7 of the Indian Electricity Grid Code (Grid Code) despite repeated instructions and messages from Northern Regional Load Despatch Centre and as to why penalty under Section 142 of the Electricity Act, 2003 (the Act), be not imposed on it for over-drawl of electricity for each occasion during 13.4.2009 to 10.5.2009 The pattern of over-drawal by the respondent during the period in question had been as under:
S. No
Volume of Over-drawal (MW)
Number of time-blocks
1
More than 50 MW and less than or equal to 100 MW
16
2
More than 100 MW and less than or equal to 200 MW
52
3
More than 200 MW and less than or equal to 500 MW
200
4
More than 500 MW and less than or equal to 1000 MW
195
5
More than 1000 MW
26
Total
489
2. The respondent filed its reply under affidavit dated 13.7.2009 We have gone through the reply and heard the learned counsel and the representative of the respondent. Gist of the submissions by the respondent is as under:
(a) The demand of electricity in the State far exceeds the availability from its own generation and allocation from the central sector. The respondent has alleged that despite repeated requests, there was no increase in the central sector allocation. The respondent has submitted that in order to overcome the shortage, at least three private sector power plants of capacity of 2130 MW are under implementation and the first unit of 300 MW is scheduled to be commissioned in March 2010. Besides, it has been explained, power purchase agreements have been made with several co-generating plants to generate 1022 MW of which 911 MW is already commissioned and the rest is to be commissioned shortly. The State Government has also said to have undertaken expansion of two power stations by adding 2×250 MW each, which is likely to be completed by 2010.
(b) According to the respondent, demand has increased suddenly due to extreme hot weather conditions. It has been stated that average demand during April 2009 was higher than the demand for April 2008 by 13.7 MU. For the month of May 2009, the average demand had increased by 7.3 MU in 2009 as compared to the corresponding month in 2008.
(c) The other reason given by the respondent in support of over-drawal is the lower availability from power traders. The respondent is stated to have entered into agreements with a number of traders and State utilities. However, against the agreement for purchase of 318 MU of electricity, only 82.7 MU was scheduled in April 2009. In May 2009, against the agreement for 159.3 MU, only 93.8 MU was scheduled.
(d) The respondent has explained that non-establishment of the State Load Despatch Centre in the State is also a contributory factor. The respondent has submitted that although it has been performaing the functions of the State Load Despatch Centre, it has not been able to ensure the integrated operation of power system in the State. Learned counsel for the respondent amplified during the hearing that in the absence of the statutory autonomy, the officials of the respondent, which is a corporation under the State Government could not ignore the instructions from the Government.
3. The respondent has also submitted the details of the action taken by it on receipt of every ‘B’ and ‘C’ message from NRLDC. Besides, the respondent has also placed on record a few newspaper reports indicating mob violence during shut downs.
4. Representative of NRLDC who was present during the hearing in pursuance of the Commission's direction, submitted that over-drawal by the respondent was a perennial feature. He pointed out that proceedings were taken against the respondent in the past for violations of the Grid Code and these proceedings culminated into imposition of penalty on four occasions in the past. This, however, it was stated, had not deterred the respondent from over-drawing. According to him, out of 488 time-blocks when the frequency was below 49.2 Hz during the period in question, the respondent had over drawn during 453 time-blocks. He pointed out that instantaneous over-drawals by the respondent were more than 1000 MW on a number of occasions with the maximum over-drawal reaching the extreme limit of 1523 MW. Besides, the average over-drawal by the respondent, at frequency below 49.2 Hz. during April 2009 was 463 MW.
5. The representative of NRLDC further submitted that such indiscriminate and heavy over-drawals by the respondent encourage indiscipline by other State constituents who question the authority of the Regional Load Despatch Centre when asked to curtail over-drawal amounting to 100 MW while the respondent over-drew to the tune of 1000 MW. He also mentioned that threatening calls were being received in the control room of NRLDC, purportedly questioning the efforts to enforce grid discipline on the respondent.
6. The representative of NRLDC exhibited data relating to over-drawals by the respondent during May and June 2009 also. However, as the present proceedings are in respect of over-drawals during 13.4.2009 to 10.5.2009 only, we do not take notice of the data exhibited at the hearing.
7. From the submissions made by the respondent, it emerges that over-drawal during low frequency conditions, that is, at frequency below 49.2 Hz is not denied. The respondent has only endeavoured to justify its over-drawals in view of its inability to meet the demand in the State either by increasing generation or procuring adequate additional power from other sources. Deficiency of power and the respondent's inability to meet demand, we are convinced, do not justify over-drawal especially at low frequency conditions and thereby jeopardizing the security of the grid and the consequent damage to all the Thermal Generating machines in the same grid, the stability of Power Systems and those to the user appliances. This type of operations would also reduce the life of generating machines.
8. The respondent has also submitted some details of action taken by it in response to ‘B’ and ‘C’ messages received from NRLDC. At the outset, we take note of the fact that the respondent has indicated its action against all but ten messages received from NRLDC. It is seen that on most of the occasions, the respondent is reported to have opened certain lines and on a few instances, it had instructed generating stations to increase generation. Under the above circumstances, the short question for our determination is whether these actions absolve the respondent of the charges of over-drawal in contravention of the provisions of the Grid Code as narrated in the show cause notice dated 12.6.2009
9. The charge against the respondent is of non-compliance of the provisions of the Grid Code. Relevant paras of the Grid Code are extracted hereunder for ease of reference:
“5.4.2 Manual Demand Disconnection
(a) As mentioned elsewhere, the constituents shall endeavour to restrict their net drawal from the grid to within their respective drawl schedules whenever the system frequency is below 49.5 Hz. When the frequency falls below 49.2 Hz, requisite load shedding (manual) shall be carried out in the concerned State to curtail the over-drawal.”
6.4 Demarcation of responsibilities
4. Provided that the States, through their SLDCs, shall always endeavour to restrict their net drawal from the grid to within their respective drawal schedules, whenever the system frequency is below 49.5 Hz. When the frequency falls below 49.2 Hz, requisite load shedding shall be carried out in the concerned State(s) to curtail the over-drawal.”
(Emphasis supplied)
10. The word “requisite” is significant in the above extracted statutory provisions. It implies that the quantum of load shedding must be up to the level whereby the frequency will rise to a level above 49.2 Hz. An overdrawing utility can be considered to have complied with the provisions of the Grid Code only if the load shedding results in either the over-drawal being completely eliminated or it leads to the frequency rising above 49.2 Hz. Based on this criteria, the respondent can be exonerated of the charge of non-compliance with the provisions of the Grid Code only if there was no over-drawal after receipt of the message till frequency reaches the threshold limit of 49.5 Hz. It is seen that out of the 489 time-blocks during which there was over-drawal by the respondent during the relevant period, there are 257 time blocks during which over-drawal continued from the previous time-block. We are of the opinion that action taken by the respondent cannot be considered to be adequate in respect of these 257 time-blocks.
11. Non-establishment of the State Load Despatch Centre by the State Government, though a matter of serious concern, cannot be a justification for indiscriminate over-drawal by the respondent. As informed by the respondent, the load dispatch functions are presently performed by the respondent itself. In this manner, as an entity performing the load dispatch functions, the respondent should be in a better control of the situation. The respondent has stated that as a State Government company performing the load dispatch functions, it could not have ignored the directions of the political executive. This, even if true, cannot be taken as an extenuating circumstance to justify over-drawal. We may, however, add that apart from making a bald statement, there is no supporting evidence on record that over-drawals were under the directions of senior Government functionaries or the political executive. In case in the absence of the established State Load Despatch Centre, the respondent is unable to function in accordance with law, it should taken up the matter with the State Government to establish the State Load Despatch Centre.
12. Based on the above, we conclude that the respondent is guilty of contravention of and non-compliance with the relevant provisions of the Grid Code, extracted above.
13. As regards the quantum of penalty, we observe that the respondent is guilty of repeated violation of the provisions of the Grid Code. In the past, on certain occasions, as pointed out by the representative of NRLDC, the respondent was found guilty of contravention of the provisions of the Grid Code. The instances brought out in the show cause notice dated 12.6.2009 are only repeat of previous violations. We are, therefore, of the view that the maximum penalty under Section 142 of the Act deserves to be levied for each contravention.
14. Accordingly, we direct that penalty of Rs. Two crore and fifty seven lakh at the rate of Rs. one lakh for each of the time-blocks (total number 257) during which the over-drawal has continued from the previous time-block, out of the over-drawals listed in Annexure I to the show cause notice dated 12.6.2009 be imposed on the respondent. The necessary details in this regard are contained in Annexure ‘A’ to this order. The penalty shall be deposited latest by 31.8.2009
Annexure 1
Time-blocks during which over-drawal at low frequency continued from the previous block
S. No.
Date
Block
MW
1
13-Apr-2009
3
171
2
13-Apr-2009
7
395
3
13-Apr-2009
12
633
4
13-Apr-2009
13
619
5
13-Apr-2009
14
609
6
13-Apr-2009
46
268
7
13-Apr-2009
47
126
8
13-Apr-2009
48
169
9
13-Apr-2009
58
239
10
13-Apr-2009
59
347
11
13-Apr-2009
60
316
12
13-Apr-2009
64
331
13
13-Apr-2009
67
465
14
13-Apr-2009
68
567
15
13-Apr-2009
86
362
16
14-Apr-2009
9
874
17
14-Apr-2009
20
551
18
14-Apr-2009
42
704
19
14-Apr-2009
43
587
20
14-Apr-2009
44
336
21
14-Apr-2009
45
373
22
14-Apr-2009
46
166
23
14-Apr-2009
52
512
24
14-Apr-2009
58
290
25
14-Apr-2009
59
455
26
14-Apr-2009
62
401
27
14-Apr-2009
63
525
28
14-Apr-2009
64
588
29
14-Apr-2009
67
203
30
14-Apr-2009
83
411
31
14-Apr-2009
86
400
32
14-Apr-2009
92
250
33
14-Apr-2009
93
175
34
14-Apr-2009
94
169
35
14-Apr-2009
95
153
36
15-Apr-2009
2
198
37
15-Apr-2009
3
326
38
15-Apr-2009
4
475
39
15-Apr-2009
5
620
40
15-Apr-2009
6
559
41
15-Apr-2009
7
575
42
15-Apr-2009
8
522
43
15-Apr-2009
12
355
44
15-Apr-2009
13
762
45
15-Apr-2009
14
740
46
15-Apr-2009
15
874
47
15-Apr-2009
16
890
48
15-Apr-2009
17
934
49
15-Apr-2009
18
871
50
15-Apr-2009
19
714
51
15-Apr-2009
20
724
52
15-Apr-2009
58
221
53
15-Apr-2009
64
396
54
16-Apr-2009
17
930
55
16-Apr-2009
23
75
56
16-Apr-2009
24
89
57
16-Apr-2009
42
606
58
16-Apr-2009
55
434
59
16-Apr-2009
60
815
60
16-Apr-2009
63
394
61
16-Apr-2009
91
303
62
16-Apr-2009
94
120
63
17-Apr-2009
1
307
64
17-Apr-2009
6
670
65
17-Apr-2009
7
796
66
17-Apr-2009
8
628
67
17-Apr-2009
11
888
68
17-Apr-2009
12
1073
69
17-Apr-2009
15
1149
70
17-Apr-2009
16
1072
71
17-Apr-2009
17
1021
72
17-Apr-2009
18
910
73
17-Apr-2009
19
861
74
17-Apr-2009
20
727
75
17-Apr-2009
23
166
76
18-Apr-2009
91
157
77
19-Apr-2009
1
140
78
19-Apr-2009
2
360
79
19-Apr-2009
3
392
80
19-Apr-2009
4
441
11
81
19-Apr-2009
5
82
19-Apr-2009
14
746
83
19-Apr-2009
17
916
84
20-Apr-2009
94
796
85
20-Apr-2009
95
721
86
21-Apr-2009
24
375
87
21-Apr-2009
63
555
88
21-Apr-2009
67
166
89
22-Apr-2009
20
1098
90
22-Apr-2009
24
806
91
22-Apr-2009
42
593
92
22-Apr-2009
43
532
93
22-Apr-2009
95
693
94
23-Apr-2009
8
635
95
23-Apr-2009
9
582
96
23-Apr-2009
13
481
97
23-Apr-2009
14
594
98
23-Apr-2009
23
204
99
24-Apr-2009
2
542
100
24-Apr-2009
3
477
101
24-Apr-2009
10
535
102
24-Apr-2009
11
723
103
24-Apr-2009
12
745
104
24-Apr-2009
19
395
105
24-Apr-2009
23
226
106
24-Apr-2009
24
78
107
24-Apr-2009
46
259
108
24-Apr-2009
47
76
109
24-Apr-2009
90
347
110
24-Apr-2009
91
369
111
24-Apr-2009
92
380
112
24-Apr-2009
93
476
113
24-Apr-2009
94
577
114
24-Apr-2009
95
556
115
24-Apr-2009
96
550
116
25-Apr-2009
1
408
117
25-Apr-2009
4
389
118
26-Apr-2009
23
238
119
25-Apr-2009
46
339
120
25-Apr-2009
78
124
121
25-Apr-2009
90
265
122
25-Apr-2009
91
112
123
25-Apr-2009
92
195
124
25-Apr-2009
93
407
125
25-Apr-2009
94
633
126
25-Apr-2009
95
526
127
25-Apr-2009
96
544
128
26-Apr-2009
1
515
129
26-Apr-2009
2
465
130
26-Apr-2009
3
354
131
26-Apr-2009
4
395
132
26-Apr-2009
5
474
133
26-Apr-2009
6
487
134
26-Apr-2009
7
393
135
26-Apr-2009
18
672
136
26-Apr-2009
19
620
137
26-Apr-2009
20
593
138
26-Apr-2009
21
721
139
26-Apr-2009
22
645
140
26-Apr-2009
23
689
141
26-Apr-2009
24
812
142
26-Apr-2009
94
608
143
26-Apr-2009
95
739
144
26-Apr-2009
96
757
145
27-Apr-2009
1
680
146
27-Apr-2009
2
678
147
27-Apr-2009
3
673
148
27-Apr-2009
39
117
149
27-Apr-2009
42
360
150
27-Apr-2009
43
151
151
27-Apr-2009
46
535
152
27-Apr-2009
47
426
153
27-Apr-2009
55
364
154
27-Apr-2009
56
319
155
27-Apr-2009
91
502
156
27-Apr-2009
94
858
157
27-Apr-2009
95
767
158
28-Apr-2009
42
709
159
28-Apr-2009
45
283
160
28-Apr-2009
46
424
161
28-Apr-2009
47
576
162
28-Apr-2009
50
506
163
28-Apr-2009
56
459
164
28-Apr-2009
78
194
165
28-Apr-2009
85
827
166
28-Apr-2009
86
730
167
28-Apr-2009
87
577
168
28-Apr-2009
90
605
169
28-Apr-2009
91
691
170
28-Apr-2009
92
728
171
28-Apr-2009
93
637
172
28-Apr-2009
94
425
173
28-Apr-2009
95
416
174
28-Apr-2009
96
528
175
29-Apr-2009
1
627
176
29-Apr-2009
2
717
177
29-Apr-2009
8
449
178
29-Apr-2009
9
598
179
29-Apr-2009
10
674
180
29-Apr-2009
11
702
181
29-Apr-2009
44
269
182
29-Apr-2009
45
243
183
29-Apr-2009
59
324
184
29-Apr-2009
62
163
185
29-Apr-2009
63
172
186
29-Apr-2009
68
361
187
29-Apr-2009
91
261
188
29-Apr-2009
94
657
189
29-Apr-2009
95
809
190
29-Apr-2009
96
834
191
30-Apr-2009
1
618
192
30-Apr-2009
2
350
193
30-Apr-2009
3
319
194
30-Apr-2009
4
421
195
30-Apr-2009
5
240
196
30-Apr-2009
6
255
197
30-Apr-2009
7
113
198
30-Apr-2009
10
413
199
30-Apr-2009
11
543
200
30-Apr-2009
18
1012
201
30-Apr-2009
19
1213
202
30-Apr-2009
20
1352
203
30-Apr-2009
21
1500
204
30-Apr-2009
22
1523
205
30-Apr-2009
23
1513
206
30-Apr-2009
43
366
207
30-Apr-2009
44
289
208
30-Apr-2009
47
339
209
30-Apr-2009
86
819
210
30-Apr-2009
87
881
211
30-Apr-2009
90
604
212
30-Apr-2009
93
742
213
30-Apr-2009
94
1252
214
30-Apr-2009
95
1152
215
30-Apr-2009
96
1098
14
216
01-May-2009
1
217
01-May-2009
2
1192
218
01-May-2009
3
911
219
02-May-2009
61
697
220
02-May-2009
62
685
221
04-May-2009
49
1154
222
04-May-2009
50
1189
223
04-May-2009
55
1351
224
04-May-2009
56
1110
225
04-May-2009
64
864
226
05-May-2009
67
346
227
06-May-2009
59
317
228
06-May-2009
60
99
229
06-May-2009
63
312
230
06-May-2009
94
410
231
07-May-2009
1
412
232
07-May-2009
4
324
233
07-May-2009
19
245
234
07-May-2009
20
264
235
07-May-2009
23
290
236
07-May-2009
87
908
237
07-May-2009
88
655
238
07-May-2009
91
597
239
07-May-2009
92
599
240
07-May-2009
93
603
241
07-May-2009
94
600
242
07-May-2009
95
506
243
08-May-2009
3
465
244
08-May-2009
4
488
245
08-May-2009
46
261
246
08-May-2009
91
568
247
08-May-2009
94
813
248
08-May-2009
95
569
249
08-May-2009
96
647
250
09-May-2009
1
635
251
09-May-2009
2
511
252
09-May-2009
3
452
253
09-May-2009
4
388
254
09-May-2009
5
391
255
09-May-2009
12
695
256
09-May-2009
13
838
257
09-May-2009
14
904