CHENNAI: Producers of green energy such as wind and solar power in Tamil Nadu may soon have to pay nearly 14 times more transmission charge as Tangedco, in its recent tariff hike proposal submitted to the Tamil Nadu Electricity Regulatory Commission, has proposed to hike the charge to Rs 1.52 per unit from the existing 11 paise per unit. The current charge also includes 50% subsidy.
As per the new tariff plan, the subsidy will be scrapped and Rs 1.52 per unit will be uniformly charged for using Tangedco’s transmission network. A senior Tangedco official said that even after the proposed hike, the transmission charge (technically known as wheeling charges) in TN will be lower than other States. “Uttar Pradesh collects Rs 1.60 and Madhya Pradesh Rs 1.58 per unit. We have not increased the charge since 2017. So, we have decided to hike it now,” the official said.
Wind power generators and industrialists, however, said the steep hike would discourage private players from embracing green energy and the move goes against the government’s aim to reduce coal-based power generation and carbon emission. K Venkatachalam, member of TNERC’s State Advisory Committee and president of Tamil Nadu Spinning Mill Association, said, “No entrepreneur will be interested in entering the sector if wheeling charges are hiked.
The government must reconsider the proposal.” Venkatachalam also said Tangedco’s proposal says the new charges will be collected from financial year 2021-22. “How can Tangedco hike the charge after the end of the financial year? This is a serious concern,” he said. V Ganesh, a Tirunelveli-based windmill owner, said the industry has been severely hit during the pandemic.
“Businesses are just limping back to normalcy. This is unacceptable,” he said. According to sources, industries like hotels, spinning mills, garment units and others getting power from private entities through open access systems would be adversely affected because of the new plan. This may lead to price escalation as manufacturing cost will go up, they said.