Millennium Post

Centre hives off POSOCO as independent company

Centre hives off POSOCO  as independent company
The government has decided to set up Power System Operation Corp (POSOCO) as an independent government company, an official statement said.

It was earlier part of central transmission utility Power Grid Corporation. The exercise of hiving off POSOCO was aimed at putting in place an independent, secure and reliable power system operation entity at the national level as mandated under the Electricity Act, 2003.

POSOCO operates the National Load Despatch Centre (NLDC) and Regional Load Despatch Centres (RLDCs) which are also responsible for operating the electricity market in the country.

It is also designated as the nodal agency for major reforms in the power sector such as the Renewable Energy Certificate (REC) Mechanism, transmission pricing, short-term open access in transmission, Deviation Settlement Mechanism, Power System Development Fund (PSDF), etc. "With transmission coming under competition and multiple transmission licensees operating, need was felt to ensure the independence and neutrality of the system operation function," the statement said.

The Enquiry Committee set up following the July 2012 grid disturbances recommended putting in place zero tolerance systems, including setting up of an Independent System Operator, it added.

Power stocks light up, surge by up to 12%

Shares of companies related to power sector soared nearly 12 per cent on Thursday after the government decision to set up Power System Operation Corp as an independent firm for ensuring neutrality of the transmission system operations.

Torrent Power’s scrip surged 11.93 per cent, while PTC India rose by 5.04 per cent and Bhel went up by 4.91 per cent on the BSE. Similarly, Reliance Infrastructure climbed 4.90 per cent, Siemens (4.62 per cent), Jaiprakash Power Ventures (3.98 per cent), Tata Power (3.69 per cent), Adani Power (3.62 per cent) and Reliance Power (3.17 per cent).

Following the rally in these scrips, the BSE power index gained 3.26 per cent to 1,999.37.

The government has decided to set up Power System Operation Corp (POSOCO) as an independent government company, an official statement said.
PTI

PTI

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