State power utilities have been penalised for not complying with the provisions of the Electricity Act, 2003, while drawing power under the unscheduled interchange mechanism.

In a path-breaking order, the Central Electricity Regulatory Authority (CERC) has imposed a penalty of Rs 1 lakh each on utilities in Uttar Pradesh, Jammu and Kashmir, Arunachal Pradesh, Nagaland, Bihar, Jharkhand, Manipur, Meghalaya, Mizoram and Madhya Pradesh, and Rs 90,000 each on utilities in Punjab and Tamil Nadu for not having letters of credit and thereby causing non-compliance.