Tangedco’s multi-year tariff: TNERC releases draft regulations

CHENNAI: Tamil Nadu Electricity Regulatory Commission has sought public comments on the Tamil Nadu Generation and Distribution Corporation's plea to fix multi-year tariff on a formula based on the consumer price index or wholesale price index for the next four years up to 2026-27.

The commission has proposed amending regulations to increase the time of the day or peak hours from the existing six hours to eight hours for industrial consumers and to increase the multi-year tariff petition duration from three years to five years. But, the two separate amendments to the regulation have raised apprehension among industrial consumers about why the commission was in hurry to implement the demands made by the Tangedco in the tariff petitions even before deciding on it.

Even as the commission has sought public opinion on the Tangedco tariff petition till August 17, it has set the deadline for two amendments till August 10.

“By completely accepting the views of the Tangedco or Tantransco or SLDC, now the TNERC has notified the draft Amendment for comments before August 10 without minding the tariff review petitions are already waiting for the comments of the stakeholders till August 22. This is highly paradox, ” K Venkatachalam, chief advisor to Tamil Nadu Spinning Mills Association (TASMA) said.

Pointing to the writ petition filed in the Madras High Court against the appointment of the member in TNERC in violation of the court orders, he said that TNERC’s amendments would be brought to the notice of the High Court on August 4.

If the commission approves the amendment to the muti-year tariff based on the CPI, the Tangedco could be able to hike the power tariff every year based on the price index without filing the tariff petition.

In another amendment, TNERC seeks to approve the Tangedco’s demand for fixing the time of the day tariff during peak hours to ensure that the cost of energy paid by the consumer at any point of time reflects the true cost of supply availability. TNERC directed the Tangedco in 2017 to undertake a detailed study of hourly consumption patterns and flatten the load curve and ensure the cost of energy paid by the consumers at any time reflects the true cost of supply.