In a major relief to many small and medium scale industries, the Tamil Nadu Electricity Regulatory Commission (TNERC) has notified the amendment to the electricity supply code which allows consumers the option to avail of up to 150 Kilowatts (KW) under the Low Tension (LT) Category, compared to an earlier limit of up to 112 KW.
The consumers are also permitted to remain in the old scheme if they are willing to do so.
A major difference under the new amendment is that consumers can avail of LT supply up to 150 KW, provided they pay fixed demand charges -- as those for High Tension (HT) supply at ₹350/Kilovolt Ampere (KVA) instead of ₹70/KW, according to an expert. He also pointed out that, hitherto, consumers were paying hefty penalty charges once they exceeded the sanctioned demand of 112 KW and were not in a position to develop the electricity infrastructure needed for availing of HT supply, due to space and other financial considerations.
“The proposed amendments aim to improve the HT/LT line ratio, facilitate consumers to obtain supply under the ‘Ease of doing business’ programme of the Department of Industrial Policy and Promotion, and provide choice of supply to other consumers,” TNERC said in the explanatory note in its gazette notification.
Even though Tangedco (Tamil Nadu Generation and Distribution Corporation) will lose on the penalty so far collected due to the new amendment, it will be offset by the fixed demand charges to be collected from this category of consumers, the expert said.
In case a customer has availed of supply up to 130 KW and if the recorded demand does not exceed 150 KW, then he has to pay demand charges of up to 1% of the consumption charges for every exceeding KW.
In case of where demand exceeds 150 KW, it will attract excess demand charges of 1% per KW up to 150 KW and 1.5% per every KW above 150 KW for the first two occurrences. Demand charges of 3% will be levied for every KW over and above 150 KW for the third occurrence and 10% in case of the fourth occurrence.
If the recorded demand exceeds 150 KW for the third time or more, Tangedco can issue a notice to convert the LT connection into an HT connection.
“This is a welcome move and will help medium and small industries to put more machinery in their facilities. Tamil Nadu is one of the few States to allow a limit of up to 150 KW,” said A.N. Sujeesh, president, Ambattur Industrial Estate Manufacturers’ Association
