EPDCL slaps a penalty of Rs 91.77 crore

Rashtriya Ispat Nigam Limited (RINL) is on the top of big industrial consumers of Eastern Power Distribution Company of AP Limited (EPDCL), who has been imposed a heavy penalty for violation of peak hour load restriction (PHLR).

Sources in EPDCL told The Hindu that for the period from September to December, 2012, the RINL has been slapped a penalty of Rs.91.77 crore. It would cross Rs.100-crore mark if the penalty being imposed for January is included.

The break-up of penalties imposed as per the order issued by the AP Electricity Regulatory Commission (APERC) as part of revised restriction and control (R&C) measures issued vide notification dated September 7, 2012 as follows: September Rs.16.26 crore, October Rs.33.15 crore, November Rs.51.45 crore and December Rs. Rs.47.42 crore.

Special drive

EPDCL has partially realised the penalty amount from some of the consumers and is contemplating launching a special drive to recover the remaining amount notwithstanding the protests made by some of them. “We are sticking to the rule book,” an official of EPDCL pointed out.

Sources said the RINL, which owns Visakhapatnam Steel Plant, appears to be heading for trouble as EPDCL, it is learnt, has requested the APTransco to go ahead with switching off power supply if the penalty slapped on the company is not paid immediately.


However, RINL officials contend that they have special arrangement with the APTransco to draw more power whenever there is short-supply from its captive power plant. “We also give our surplus power to the State Grid. Hence, our plea to exempt us should be considered favourably,” an official of RINL pleaded.

RINL Chairman-cum-Managing Director A.P. Choudhary, represented to Chief Minister N. Kiran Kumar Reddy during his last visit to Visakhapatnam over the penalty issue and sought exemption of the VSP as a special case. The company is hopeful of favourable orders from the government.

The heavy penalties imposed on IT units particularly at Rushikonda IT Park for the bill generated recently will be adjusted against future bills as the Department of Energy issued a GO dated February 4 to exempt them from R&C measures with retrospective effect from December 4.