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This is an archive article published on April 10, 2007

CERC moves apex court on ATE order

The Central Electricity Regulatory Commission today moved the Supreme Court against the Appellate Tribunal for Electricity...

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The Central Electricity Regulatory Commission (CERC) today moved the Supreme Court against the Appellate Tribunal for Electricity (ATE)’s refusal to uphold its powers to fix the trading margin for sale of electricity by a generator to a trader or an intermediary.

A Bench headed by Justice Arijit Pasayat issued notices to 24 respondents, including Gajendra Haldea, various state commissions, Power Trading Corporation, Grid Power Corp of Orissa and others to file replies to the CERC petition and tagged the matter with a petition filed by PTC.

The apex court, on PTC’s plea in January this year, had stayed the ATE order, which had directed the CERC to determine the base price to which the electricity generating companies can add a maximum 4 per cent margin while selling electricity to a trader or intermediary to prevent exploitation of consumers.

However, the Appellate Tribunal for Electricity had allowed the regulator to fix the tariff for sale of electricity by a generator to a distributor. According to the Central Electricity Regulatory Commission, the tribunal had erred in holding that a generator was free to have a direct commercial relationship with a trader or an intermediary without any restrictions by an appropriate commission.

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