TNERC warns officials of action for ignoring instructions repeatedly

CHENNAI: Pulling up the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) for repeatedly failing to follow its instructions, including forcing consumers to purchase 100A electricity meters only from the lone empanelled vendor, the Tamil Nadu Electricity Regulatory Commission (TNERC) issued strict direction to the utility to follow its directions and warned of action against officials if corrective measures are not taken within a month.

The corporation has empanelled only a single vendor, which is charging double the Tangedco-approved rates for 100A meters, which are used by bigger consumers like commercial units. When consumers approached the corporation with meters they purchased for new service connections or replacement for defective meters, the officials refused to accept them.

In its letter to the Chairman cum Managing Director of TNPDCL, the commission accused the utility of ignoring it previous instructions issued on May 28, 2024, and October 9, 2024, regarding consumer meters, as the corporation neither responded to it nor issued revised instructions in line with regulatory provisions.

The corporation continuing to reject consumer-procured meters violated regulatory provisions that empower consumers to purchase their meters, the commission alleged, adding that this was happening despite repeated directives.

The commission also highlighted the monopoly issue in the procurement of 100A meters, noting how the lone empanelled vendor has been charging Rs 17,582 per meter, more than double the Tangedco-approved price of Rs 8,000. This, TNERC noted, has resulted in unfair market practices and restricted consumer choice.

The commission has now ordered the utility to expand the empanelled vendor list to prevent monopolistic pricing and issue notices to vendors warning them against overpricing. If they do not comply, their appointment as empanelled vendors should be cancelled, it said.

The commission asked the utility to follow its previous direction to establish at least two retail outlets in each circle to ensure that consumers could buy meters without any hassle. "Revise the working instructions in line with the directive within a month. Failure to comply will lead to disciplinary action against responsible officials for wilful disobedience of the commission's directive," it warned in the letter.

On February 22, 2024, the corporation had issued instructions on the acceptance of consumer meters purchased from the empanelled vendors whenever the utility runs out of stock. In the instruction, its chief engineer (material management) said the consumer meter should be accepted only if there is no meter in stock with the utility after confirming with the material management wing. The instructions also put the onus on the consumers to replace the meters if they become defective.

KEY POINTS

TNPDCL forcing consumers to purchase electricity meters only from the lone empanelled vendor

The vendor selling 100A meters at Rs 17,582 per meter, more than double the Tangedco-approved price of Rs 8,000

Corporation ignoring the commission’s repeated directions