The Tamil Nadu Generation and Distribution Corporation (Tangedco) has filed a petition with the State electricity regulator for levy of additional surcharge of ₹1.91 per unit on open access consumers (like industrial users and commercial buildings) in addition to cross-subsidy surcharge.
The concept of open access allows large users of power (typically who draw power from the grid of one megawatt and above) to buy cheaper power directly from private generators than depending on the State utility.
Revenue loss
The move was aimed at increasing competitiveness and efficiency in the power sector.
The loss of revenue suffered by the State utility due to open access is made good through levy of cross-subsidy surcharge.
In its petition with Tamil Nadu Electricity and Regulatory Commission (TNERC), Tangedco said it has tied up considerable quantum of power considering the overall growth of the State and therefore tied up power for upcoming consumers as well.
However, the open access users are not availing themselves of power supply from Tangedco and as a result the generation capacity tied up remains idle, it added.
Tangedco further said in such a situation it has to pay fixed charges to the generators as per the power purchase agreements, irrespective of whether the power is used or not.
The state utility also noted that the demand charges payable by open consumers to Tangedco does not compensate fully the fixed cost payable by it to generators.
It also noted that tariffs are heavily skewed where more than 60% of fixed cost is recovered through energy charges from consumers.
Tangedco said it has installed capacity of 18,732.78 MW in thermal and 10,479.61 MW in renewable power and the total installed capacity stands at 29212.39 MW as on May 31, 2017.
