A slew of consumers recently knocked the doors of the Tamil Nadu Electricity Regulatory Commission (TNERC), seeking relief over the issue of the Tamil Nadu Generation and Distribution Corporation Limited (Tangedco) demanding the cost of installing distribution transformers and related equipment for availing service connections.
The regulator ruled that the Tangedco’s demands are in violation of norms and set guidelines, noting that the issue has State-wide ramifications.
In November 2021, TNERC, in a case filed by Chennai-based Tara Murali, ruled that the cost pertaining to the distribution transformer and related structures has to be incurred by the Tangedco, while the cost pertaining to the installation of the high tension (HT) line and low tension (LT) line in the premises of the consumer must be paid for by them.
In this case, the Tangedco had originally demanded ₹13,65,700 from the consumer in relation to six flats. This included a sum of ₹ 10,43,053 as estimated charges towards building the distribution transformer infrastructure. While there were no issues with regards to charges under current consumption deposit, meter caution deposit and service connection charges, the main dispute arose due to the demand relating to distribution transformers and related infrastructure.
During the course of the hearing in the case, the Tangedco revised the total charges downwards to ₹2,78,100. In its order, the TNERC noted that in 2015, it had clarified on the issue through an order that the cost of transformer and related infrastructure should be borne by the distribution board.
It point out that once the consumer had approached it for relief, the Tangedco had revised the charges and said they adhered to the norms.
“This creates an impression that the respondent [Tangedco] is not clear in its mind and authoritative in its action in collecting the charges from the prospective consumers. Such an attitude of showing discrimination to consumers depending upon their course of legal actions does not augur well for a service organisation valuing the trust of the people,” it noted. The TNERC also warned of statutory action against Tangedco officials if they collected charges unlawfully.
Taking note of the Tangedco’s submission that there was a huge gap between the actual expenditure incurred on infrastructural extension (which is around ₹1,477.82 crore) and the development charges collected from consumers (around ₹436.51 crore), the Commission told the board to file a petition for revising the charges for each level of voltage and category, considering its financial viability. Till then, the Tangedco should stop charging consumers for distribution transformers and related infrastructure, it ruled.
Four other consumers moved separate petitions before the TNERC on similar issues and this month the TNERC ruled that the order passed in Tara Murali’s case would apply to these as well and set aside the excess demand notice.
Along with the demand notice, TNERC also told Tangedco to enclose a sketch duly authenticated by the sanctioning authority with clear demarcation of the Tangedco side and consumer side costs and measurement of length of cable/line and proposed structure/equipment in the respective portions. The copy of the sanctioned estimate, comprising the entire details of quantity, cost etc., should be enclosed with the said sketch, the TNERC said, and added that all consumer clarifications should be addressed.
The TNERC also said excess charges collected should be refunded in 30 days or adjusted in future bills.
“The Tangedco should ensure no consumer suffers on account of the actions of field officials, and a well-coordinated system has to be set in motion to take corrective action at the higher level to avoid consumers from knocking on the doors of the Commission for relief,” it said.
A senior official from the Tangedco said they were going on an appeal against the orders of the TNERC. He pointed out that the poor financial position was one of the reasons for the utility to recover the expenses for erecting the infrastructure.
“There is a provision in the Electricity Act, under Section 46, for erecting the infrastructure that is meant to be utilised by the particular premises and recovering the cost from the consumers,” the official said.
