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Home News Power Sector News CERC proposes budget allocation for SLDC to promote open access

CERC proposes budget allocation for SLDC to promote open access

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CERCThe Central Electricity Regulatory Commission (CERC) has asked the Union ministry of power to provide separate budget allocation for state load despatch centres (SLDC). State governments exercise indirect control over SLDCs to ensure that there is no open access of electricity for other states. This has created problems for private power generators.

A load despatch centre is the apex body responsible for the operation, planning, monitoring and control of the power system in a state.

State governments put pressure on SLDCs to not allow privately generated power to move out of the state.

"We have recommended that each SLDC should have a separate budget so that states can not force their decisions on them," said Pramod Deo, chairman, CERC.

Earlier the power sector regulator had recommended the separation of management and controlling interests between the entities operating SLDCs and the companies engaged in distribution andtrading activities for having non-discriminatory open access.
Abuse of Section 11 of the Electricity Act has become a major concern for the central
government as state governments are not letting private players sell their power in the open market.

The government fears that the future investment by the private players might be affected if the SLDCs are not controlled.

"The Electricity Act says that the SLDCs should function independently, but practically it would be possible only when the SLDC officials do not have to look for money from the state governments," added Deo.

SLDCs have a critical role in operationalising open access as their concurrence is a pre-requisite for permitting open access.

Source - DNA

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