TNERC amends regulations to increase peak hours for industries

CHENNAI: Tamil Nadu Electricity Regulatory Commission (TNERC) has notified amendments to extend the peak hours from the existing six hours to eight hours and to enable fixing of multi-year tariff for a period of five years based on consumer or wholesale price index or any quantum to meet the aggregate revenue requirement.

TNERC has allowed the extension of morning peak hours from 6 am-9 am to 6 am-10 am and evening peak hours from 6 pm-9 pm to 6 pm-10 pm.

The notification stated that the amendment is proposed in TNERC (Terms and Conditions for Determination of tariff) Regulations, 2005 based on the study report furnished by the Tangedco against the directives of the commission in earlier tariff to undertake study on hourly consumption patterns and to flatten the load curve and to ensure the cost of energy paid by the consumer at any point of time reflects the true cost of supply availability. Tangedco filed its tariff petition based on the recommendations of the consultant on time of day.

Dr K Venkatachalam, chief advisor, Tamil Nadu Spinning Mills Association said that they opposed the extension of peak hours duration as the state did not record peak power demands at the extended time. “But they argue that they were procuring power at higher tariffs during that time period. If the recovery of the high power cost alone is a factor, it should be collected from all. “How can HT industries alone take the share of higher cost power?” he asked. He added that when the TNERC issues a tariff order, they would come to know whether the tariff would be increased from 20 per cent to 25 per cent as proposed by the Tangedco.

With the extension of the control period to five years, if the TNERC gives a nod for the Tangedco’s proposal in the tariff petition, the electricity charges would be hiked annually till 2026-27.