TNERC rejects Tangedco demand for addl surcharge

CHENNAI: Tamil Nadu Electricity Regulatory Commission (TNERC) has rejected the Tangedco petition seeking to fix an additional surcharge from the open access consumers for the period from April 1 to Sept 30 this year for the stranded generation capacity.

The open-access concept allows industrial and commercial consumers to buy cheaper power directly from private generators. The move was aimed at increasing competitiveness in the power sector and the loss of revenue suffered by Tangedco was compensated through an additional surcharge.

TNERC said that on analysing the data furnished by Tangedco, it finds that there is an average stranded capacity of 321.98 MW April to Sept 2022. “However, going by the methodology for comparison of the adequacy of demand charges recovery hitherto followed, it is ascertained that though certain capacity is said to be stranded, the demand charges recovery from such open access consumers is within the calculated demand charges. Hence, the claim of additional surcharge does not arise from April-September, and the additional surcharge will be nil for this period,” it said.

Tangedco has been asked to file similar petition for the period Oct 2023 to March 2024.