Extract from Annexure-1 on ‘Complementary Commercial Mechanisms of Indian Electricity Grid Code ’12(a) Weekly bills shall be issued to the constituents for UI charges, as per the UI settlement system. These bills shall have a higher payment priority and the concerned constituents shall pay the billed amounts within 10 (ten) days of the billing date. 13 If payments against the above bills are delayed beyond ten (10) days, the defaulting constituent shall have to pay simple for each day of delay. The interest so collected shall be paid to the constituents/agency who had to receive the amount, payment of which got delayed. 14.All constituents shall furnish payment status of the above bills to the respective REB on monthly basis. The payment defaults, if any, shall be reported to CERC by the REBs by the 15 th of the month to which they pertain.’

Extract from ‘Rules of Pool Account Operation’ circulated by NRLDC 1.UI payments shall be routed through a pool account ‘Power Grid Corporation of India Limited-NREB UI Account operated by NRLDC on behalf of NREB. 2.The payment received into the pool account against a week would generally be paid out by NRLDC within two working days to the constituents in proportion to the amount receivable in that week.

Extract from ‘Rules of Pool Account Operation’ circulated by NRLDC (contd/-) 3.The cumulative outstanding /receivables position would be periodically monitored by NRLDC. In case a constituent has a continuously cumulative outstanding then any payment receivable by such constituent for the current week would first be redistributed to other constituents in the ratio of UI receivable till that week. Constituents are however requested to make payments due for any week in full and not make any cross-adjustment on account of receivables for past weeks under any head. 4.Periodic review of operation of the pool account would be made and efforts to settle any long overdue receivable by any constituent would be made.

Extract from the Honourable Commission’s order dated 11 th March 2003 in Petition no 81/2001 in the matter of ‘Non-compliance of RLDC direction and violation of Grid Discipline by Kahalgaon STPP.’ ‘ During the hearing, it has also been brought to our notice that despite introduction of ABT, certain beneficiaries in other regions were not settling their claims for UI charges payable under ABT regime. The Commission’s order on this issue is specific that UI charges have to be settled on priority as compared to any other charges. Any non-compliance of the Commission’s directions/orders including on the issue of non-settlement of UI charges may invite penal action under Section 44 or Section 45 of the Electricity Regulatory Commissions Act We further note that Section 47 of the said Act makes the officer-incharge of the concerned utility liable for punishment in accordance with law in case of non-compliance of order of the Commission. The Commission may not hesitate to invoke these powers in appropriate cases where required.’