Spinning Mills Association demands reduced power bill

CHENNAI: Citing ongoing war between Russia and Ukraine that has affected the export of textiles to foreign countries, Tamil Nadu Spinning Mills Association has urged chief minister MK Stalin to direct Tangedco to charge only 20 per cent of their sanctioned demand or up to the recorded demand alone from the HT consumers, instead of claiming demand charges at 90 per cent.

In a representation to the Chief Minister, the Association has said that due to the continuing war situation between Ukraine and Russia, there is a strong demand recession seen in marketing the textile products in the rest of the world, which were the key markets for the Indian textile products hitherto.

"The continuing war situation, shrank the buying capacities of other countries to a larger extent and accordingly, during the past one and half year, no export orders were received. This has caused the entire Textile Value Chain to go out of export orders and all the industries are working at their bare minimum levels only, to the extent of 25 to 30 per cent capacities, to cater the domestic needs alone," the Association said.

It added that the usage of electricity in all industries has come down drastically. However, according to the framework of law, as found in Tamil Nadu Electricity Supply Code 2004, even when the HT consumers are not using the power to their optimum extent and when their reaching of demand is much less than the sanctioned demand, such consumers have to however pay to the Tangedco a minimum of 90 per cent of their sanctioned demand, as demand charges every month.

To combat this situation, the law makers have already provided a provision in the Tamil Nadu Electricity Supply Code 2004, as below under its Regulation 6 (b). The rule allows the Tangedco to recover minimum charges at twenty percent of the billable demand or recorded demand whichever is higher besides charges for the actual consumption of electricity if the consumers are prevented from consuming electricity either in whole or in part.

The Association urged the chief minister to direct the Tangedco to invoke the rule and collect charges accordingly, till the attaining normalcy.`