Industries in Coimbatore have appealed to the Tamil Nadu Electricity Regulatory Commission (TNERC) to reduce the power tariff for consumers in the rest of the State, except Chennai, as the power cut duration is not uniform throughout the State.

While the rest of the State experiences four to 10 hours of power cut a day, it is just for two hours in Chennai. “Throughout Tamil Nadu, all consumers are charged the same rate. But, when there is power cut it is for two hours a day in Chennai and nearly 10 hours in other places. So, we have to manage with generators, which is an additional financial burden. During power cuts, if it is not uniform, Tamil Nadu Generation and Distribution Corporation (Tangedco) should reduce the power tariff to consumers in other places,” said the president of Indian Chamber of Commerce and Industry, Coimbatore, R.R. Balasundaram.

President of the Tamil Nadu Electricity Consumers’ Association (TECA) D. Balasundaram has said that since consumers in Chennai get preferred treatment in power supply, those in the rest of the State should be charged a lower tariff.

The rates should be reduced by 20 per cent from the existing levels. Since the consumers in other parts of the State use diesel generators or buy power from open access, lower tariff will be compensation.

In a memorandum submitted to the TNERC at a public hearing held here recently on tariff revision, the chamber president said the tariff petitions submitted by Tangedco and Tamil Nadu Transmission Corporation (Tantransco) contain very little information on the financial restructuring plan signed by the State Government with the Centre.

Impact

The impact of the financial restructuring plan on the tariff should be explained. The costs of Tangedco should be compared with other electricity generation and distribution utilities in the country.

Mr. Balasundaram also said that Tangedco is projecting a revenue deficit of Rs. 10, 344 crore for 2013-2014. The commission should look into the situation and identify the causes of continued losses and suggest solutions.

According to the Southern India Mills’ Association, which represents the textile mills, demand charges are collected on the basis of recorded demand or 90 per cent of the base demand, whichever is higher.

The commission should order proportionate reduction of demand charges for the load shedding period.

The chamber president also said that the maximum demand charges should be collected only for the hours during which the grid supply was given.