Stranded power-generating projects will now have to bear the cost of abandoning the allied transmission system.
In its latest order, the Central Electricity Regulatory Commission (CERC) directed power-generating companies (gencos) to pay the transmission and relinquishment charges for the stranded transmission capacity resulting on account of the abandoned projects.
This comes at a time when the thermal power sector is saddled with stressed assets of 40,000 Mw. Of this, close to 11,000 MW does not have a power purchase agreement (PPA) with any state.
This makes them the first contender to pay relinquishment charges for abandoned lines, as they are not using it to supply power round the clock. Most of the stressed units have also shifted their transmission plans because they changed their consumer or decided to sell power in the open market.
