CHENNAI: State power utility, Tangedco, incurred an additional expenditure of Rs 245.27 crore between March 2015 and March 2021 due to its failure to factor in transmission losses of 406.06 Million Units (MU) in the power purchase agreements with solar power generators (SPGs), a CAG report said.
The Tamil Nadu Electricity Regulatory Commission (TNERC) issued a tariff order in September 2014 to regulate purchase of power from SPGs. Subsequently, Tangedco entered into energy purchase agreements for 25 years with 86 SPGs under the preferential tariff scheme between March 2015 and March 2019, it said.
As per the agreement, energy accounting meters should be installed at Tangedco substations at the cost of SPGs as per Central Electricity Authority (CEA) regulations for the purpose of accounting and billing. These 86 SPGs, however, installed the meters at the generation end and connected their power plants with the nearest sub-stations owned by Tangedco through transmission lines erected at their cost.
Consequently, energy losses that occur during transmission of power from generating stations to substations are borne by the Tangedco, and the SPGs were being paid for the power calculated as per meters installed on their plants. Considering the rate of transmission loss approved by the TNERC from time to time, transmission loss absorbed by Tangedco from March 2015 to March 2021 was 406.06 MU.
The government, however, in its reply (June 2021) said as per clause 2(1) (fl) (a) of energy regulations issued by the TNERC for power procurement from new and renewable sources, SPGs are allowed to install energy meters on their solar plant premises for recording energy.
Perusing the reply, the CAG recommended that Tangedco may relocate energy meters to Tangedco substations immediately to avoid further loss, which may continue beyond March 2040, as the present energy purchase agreements were for a period of 25 years from March 2015. R Murali Krishnan, all India president of BMS electricity wing, said such issues have been reported across the country. Unless the Central government intervenes, this would continue, he added.