Inter-state transmission: Gencos find PoC charges onerous, seek revision

Private power producers want the electricity regulator to revise the tariff norms for using inter-state transmission systems (ISTS), as the current ‘opaque’ system is proving to be a big burden on them, discoms as well as end-consumers.

These ISTS charges, also called PoC (point of connection) charges, have increased 52% since Q1FY17 to `2,888 crore per month in Q3FY19. Also, tariffs vary disproportionately among the states – for instance, the rate is as low as `0.21/unit in Tamil Nadu while it is `0.80/unit in neighbouring Andhra Pradesh.
In a letter to the Central Electricity Regulatory Commission (CERC), the Association of Power Producers (APP) has said: “The prevalent method of PoC charges determination is an opaque process where the load flow studies are not provided to customers/ stakeholders.”