New Delhi: Power System Operation Corp has now been set up into an independent company for ensuring neutrality of the transmission system operations.
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.
It has been decided to establish POSOCO as a wholly-owned government company under Ministry of Power, thereby giving a big thrust to bringing in further reforms in the power sector at the central level.
PTI
