The Tamil Nadu Electricity Regulatory Commission (TNERC) has rejected a plea by open access consumers (industrial users and commercial buildings) to retrospectively extend the benefits of lower cross-subsidy surcharges.
The concept of open access allows large users of power (typically those who draw one megawatt and more from the grid) to buy cheaper power directly from the private generators rather than depending on the State utility. The move was aimed at increasing the competitiveness and efficiency in the power sector. The loss of revenue to the State utility was made good through the levy of a cross-subsidy surcharge.
In August 2017, the TNERC had cut the cross-subsidy surcharges to the tune of ₹1.6-₹2.5 a unit, in line with the National Tariff Policy 2016, which stipulated that such levies be capped at 20% of the tariff. So far, Tamil Nadu had one of the highest cross-subsidy surcharges ranging between ₹3.38 and ₹3.50 a unit.
The Open Access Users Association, a national body representing the interests of open access consumers, two other private power producers — Ski Carbon Black (India) Pvt. Ltd. and Palladam Hitech Weaving Park — had filed separate petitions with the State regulator, seeking the benefits of lower cross subsidy charges for the year 2016-17 in line with the National Tariff Policy of 2016.
No stipulation
The TNERC said the orders issued by it generally take effect prospectively and not retrospectively.
The tariff orders issued by the Commission normally take effect from the date on which it was issued and not before , it added.
The regulator noted that there was no stipulation in its open access regulations that the provisions in the National Tariff Policy 2016 should be given effect from the date of its notification. Even the tariff policy had no provision to the effect that the same was strictly implemented from the date of its publication, it added.
