CHENNAI: Tangedco is planning to reduce the gap between Average Rate of Realisation (ARR) and the Average Cost of Supply (ACS) through a series of measures. Before tariff revision, the gap stood at Rs 1.94 a unit (ARR at Rs 6.96 and ACS at Rs 8.90).
The state-run utility wants to reach break-even by 2025-26 and start making a profit from the same financial year onwards using tariff revisions and other revenue augmentation measures, a senior Tangedco officer told TNIE. This means it should reduce the gap by 50 paise to 60 paise a year.
The officer said Tamil Nadu Electricity Regulatory Commission had approved increasing the tariff till 2026-27. Another officer listed ways to augment revenue. “Efforts are being taken to install smart metres, replace defective ones, ensure 100% assessment, disconnect supply to payment defaulters, control improper use of power, and enhance online payment.”
BMS (electricity engineers’ wing) state general secretary E Natarajan told TNIE that Tangedco should crack down on power theft. Besides, a few consumers with domestic connection are using it for commercial purposes.