In a major relief to many small and medium scale industries, Tamil Nadu Electricity Regulatory Commission (TNERC) has notified the amendment to the electricity supply code which allows consumers to have an option to avail up to 150 Kilowatts (KW) under the low tension category, compared to an earlier limit of up to 112 KW.
The consumers are permitted to remain in the old scheme if they are willing to do so. A major difference under the new amendment is that the consumer can avail LT supply up to 150 KW, provided they pay a fixed demand charge as that of HT supply (₹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 the HT supply due to space and other financial considerations.
“The aim of the proposed amendments is 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 the gazette notification.
Even though the Tangedco would lose on the penalty, so far collected due to the new amendment, it would be offset by the fixed demand charges to be collected from this category of consumers, the expert said.
In case if a customer has availed supply up to 130 KW and if the recorded demand does not exceed 150 KW, then he has to pay demand charges 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 fourth occurrence.
If the recorded demand exceeds 150 KW for the third time or more, the Tangedco can issue a notice for converting the LT connection into a HT connection.
“This is a welcome move and would help medium and small industries to put more machinery in their facility. 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.
