Power guzzlers may have to pay excess ‘demand charge’

CHENNAI: In a move that would impact households with energy guzzlers like ACs, water heaters and microwaves, Tamil Nadu Electricity Regulatory Commission has proposed draft amendments to the supply code regulations to levy excess demand charges on the domestic consumers who were previously exempted along with the agricultural services.

The excess demand charge is a type of penalty. If a consumer draws power from the grid over and above the sanctioned load, the consumer is liable to pay the excess demand charge. If the consumer uses 7 kW against a sanctioned load of 5 kW at any point of time during the billing period, the consumer would be levied an excess demand charge in the bill for the excess demand of 2 kW.

After the third such violation in 12 months, as per the draft amendment, Tangedco would issue a notice to the consumer to increase the sanctioned load to the recorded maximum load along with billing excess demand. The consumer should also pay development charges and security deposit for the quantum of exceeded demand.

The draft said Tangedco should install meters with demand recording facilities to bring the consumer under the scope of the excess demand chargeable category.

“No excess demand charge is leviable till such time the licensee installs meter with demand recording facility and brings the user under scope of excess demand chargeable category,” it said.

A senior Tangedco official said all the static meters have the facility to record the maximum demand. “For the first three instances of the excess demand, the consumer would be charged one per cent of the total energy consumption as the excess charge,” he said.

Once the TNERC approves the draft code after hearing the public views, it would be implemented.

The official said many domestic consumers would have one or more ACs, water heaters, etc but would not have increased their sanctioned load in commensurate with their power demand, necessitating such an amendment.