New Delhi, Mar 21 (UNI) The Central Electricity Regulatory Commission (CERC) is mulling to increase the penalty rate on companies drawing more power from the northern grid to a maximum of Rs 7.5 per Kwh from the present Rs 5.70 per Kwh.

The move is aimed to discourage companies and states from drawing more power from the grid especially when the frequency is less than the acceptable frequency level of 50 Hz.

The rate known as unscheduled interchange (UI) presently varies from Rs 2 to Rs 5.70 per Kwh. The ceiling level is at Rs 5.70 per kWh at a frequency of 49.0 Hz.

''A proposal to increase the UI rate is under consideration. We have invited the suggestions from the Regional Load Despatch Centres (RLDCs) and others. However, 97.7 per cent respondents have voted against the hike,'' CERC outgoing Chiarman A K Basu told reporters here.

He added that the hike would ensure more grid discipline by encouraging reduced drawal from the grid as well as maximising own generation.

''More generation will mean more dispatch of naphtha as the producers will go for easier options rather than buying coal or gas spot rates,'' Mr Basu added.

However, the trading rate will further increase and states which are already power strapped will be put in problems, the CERC Chairman said.

The Regulatory Commission has kept 14 states including Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra, Madhya Pradesh, Rajasthan and Delhi under watch.

The electricity boards of Uttar Pradesh and Madhya Pradesh have already been fined for overdrawl. The fine includes provision for penalising the Chiefs of the defaulting companies making them paying out of their own pockets.

UNI