In its recent tariff order, the Tamil Nadu Electricity Regulatory Commission made certain changes with regard to temporary supply of power for new and additional construction purposes. What does it mean for the consumer?
V Gangadharan takes a closer look
Chennai: The Tamil Nadu Electricity Regulatory Commission (TNERC), in its latest tariff order, said electricity supply for any additional construction of building not exceeding 2,000 sq ft within the consumer’s premises will now be charged under the respective existing tariff.
For instance, if the user happens to be a domestic consumer, only domestic tariff (ranging from Rs 1.10 to a maximum of `5.75 per unit according to usage) will apply.
Previously, this was not the case. Even for additional construction, the chargeable rate was either Rs 7 (less than 12 dwelling units) or Rs 10.50 (over 12 dwelling units). Also, Monthly Minimum Charges (MMC) were applicable, which was Rs 100, per kW, per day.
The consumer had to pay either energy charges or the MMC, whichever was higher. For example, if a user with a connected load of 1 kW, and usage of say, even just one unit (`10.50 per unit) during the whole month, still had to shell out Rs 3,000. Now, MMC won’t apply if construction is capped at 2,000 sq ft.
However, for use of electricity for any new construction irrespective of area and additional construction beyond 2,000 sq ft, the user must get a separate service connection under the temporary supply category (LT Tariff VI - Rs 10.50 per unit). Also, the TNERC has brought in ‘Monthly Fixed Charges (MFC)’ of `300 per kW, per month scrapping the old `100 per kW, per day.
Now, it would be enough if the user paid the energy charge (unit cost) in addition to the MFC. For example, if a consumer had utilised one unit, he must pay `10.50 plus MFC, which will be only `310.50. For the same level of usage, according to the previous norm, the user was supposed to pay a minimum of `3,000.
However, there is criticism that this would unfairly benefit flat promoters catering to affluent people and industrial builders besides eating into the revenue of the cash strapped TANGEDCO, which is getting an estimated annual revenue of `80 crore from temporary supply connections.
Previously, flat promoters were charged 100 per kW per day plus consumption charges under commercial tariff. Also, individuals who constructed residential dwelling units were previously charged only `7 per unit plus `60 per kW per month. This hugely benefited the middle class.
Now, however, they will have to pay more - `10.50 per unit in addition to the MFC of `300 per kW, per month - which will increase their spendings.