TAMIL NADU

HC declares as illegal charges levied by Tangedco on high tension consumers

The Madras High Court on Friday declared as illegal the maximum-demand charges and the compensation charges for low power factor levied by the Tamil Nadu Generation and Distribution Corporation (Tangedco) on high tension consumers when the commercial establishments were shut due to the COVID-19 lockdown.

Justice N. Anand Venkatesh held that it was unfair to demand such charges from HT consumers. “On one hand, the government has asked them to shut their establishments, and on the other, Tangedco is levying maximum-demand charges from them,” he said.

“If this is allowed to be continued, it will lead to the permanent shutting down of the industries. The financial crunch being faced by the industries due to the lockdown and the huge challenge they are going to face after the pandemic is now made worse by Tangedco,” the judge observed, while disposing of a huge batch of writ petitions filed by several high tension consumers.

“It is illogical that Tangedco mechanically levied compensation for low power factor, even without understanding that the establishments were completely shut and that there was no way they could utilise the optimum PF,” Justice Venkatesh added.

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