GO issued to waive peak hour power tariff for MSMEs

CHENNAI: The state government has issued a government order to waive peak-hour electricity consumption charges for the micro, small and medium enterprises (MSME) sector until installation of meters.

Also, the government order has reduced the network charges for rooftop solar connections by 50 per cent.

The order issued by MSME department said that peak hour charges will not be collected from the industry until installation of the smart meters and reduction of network charges of rooftop solar connections by will be applicable for LT III-B category of consumers, mostly comprising MSME units.

The order added that Tangedco has calculated the loss due to reduction in charges to the tune of Rs 196.10 crore - Rs 188.79 crore for non-collection of peak hour charges and Rs 7.31 crore for reduction in network charges. The loss will be compensated by way of subsidy.

The Energy department will issue a policy directive to the Tamil Nadu Electricity Regulatory Commission (TNERC) to compensate the loss to Tangedco.

Meanwhile, the Federation of the Tamil Nadu Industrial Electricity Consumers has expressed discontent over the government order and said that they want the peak hour charges completely waived for the MSME sector. "Also, we made the investment to install rooftop solar on our property to reduce the burden on Tangedco. Instead of encouraging us, levying Rs 1.43 per unit as network charges is not acceptable. Reducing it by 50 per cent will not help. Also, a 430 per cent hike in the fixed charges should be withdrawn, " the federation said.

Peak hour charges were introduced for the first time to the MSME sector last year on par with high-tension consumers. But it was reduced to 15 per cent after several representations.

However, industries went on a strike after which, the state government has decided to waive charges until installation of smart meters.