Energy fee for inter-state lines mulled

Under the revised grid code, the Central Electricity Regulatory Commission CERC, for the first time, proposes to levy a reactive energy charge on inter-state transmission lines. This is proposed in order to ensure better voltage stability of the power grids while in operation.

Under the code, CERC wants to set up state load despatch centres for better coordination between various incumbents in the industry.

According to CERC, reorganisation of state electricity boards would lead to formation of a large number of independent entities like generating companies, transmission licensees and distribution firms, leading to a large number of intra-state entities in each region.