Refund excess charges collected from realty developer for new service connections, TNERC tells Tangedco

Consumers need pay only for installation for high-tension and low-tension lines, whereas Tangedco must bear the cost pertaining to distribution transformers and related structures, the regulatory body has ruled earlier

May 31, 2023 05:05 pm | Updated 05:05 pm IST - CHENNAI

Tamil Nadu Electricity Board workers involved in maintenance work on a transformer, in West Mambalam on Tuesday.

Tamil Nadu Electricity Board workers involved in maintenance work on a transformer, in West Mambalam on Tuesday. | Photo Credit: Velankanni Raj B

The Tamil Nadu Electricity Regulatory Commission (TNERC) has directed Tamil Nadu Generation and Distribution Corporation Ltd. (Tangedco) to refund excess charges collected from Doshi Housing Private Ltd., Chennai, while effecting new service connections in one of its residential projects.

In its petition, Doshi Housing said it had developed a residential project comprising of 188 dwelling units of four blocks in Thirumudivakkam and applied, along with others, for new service connections. The company said the applicants were charged an estimated ₹91,22,300 in 2020. The charges levied were contrary to the provisions of the Tamil Nadu Electricity Distribution code, it said.

The firm said along with other consumers it had provided more than sufficient space for the development infrastructure and for erection of Transformer with an undertaking to pay the relevant deposits/development charges as per the rules in force. It also noted that through earlier orders, TNERC had held that Tangedco cannot collect the equipment and other charges for service connection. The company said it paid the charges under protest and sought a refund.

In 2021, the TNERC heard a slew of petitions and held that cost pertaining to distribution transformers (DT) and related structures has to be incurred by Tangedco, while the cost pertaining to the installation of the high tension (HT) line and low tension (LT) line must be paid by the consumers. It also said all petitioners are entitled to a refund of the extension cost/estimate cost after adjusting the cost pertaining to the portion of the HT line/LT installation works.

TNERC noted that it had also dismissed a review petition filed by Tangedco earlier this month. It directed Tangedco to revise the original demand raised and paid by Doshi and refund any excess amount as per its directions issued in other cases.

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