Structural changes needed to unburden Tangedco: Experts
CHENNAI: Most participants of the public hearing organised by Tamil Nadu Electricity Regulatory Commission (TNERC) here on Monday termed Tangedco’s proposed tariff revision unreasonable. A few recommended structural changes in the utility and adding more solar-power capacity to unburden it.
The public hearing, held at the Kalaivanar hall, was presided over by TNERC chairman M Chandrasekar. Participants from Micro, Small and Medium Enterprises (MSME) said the tariff revision came as a bolt from the blue when they were yet to recover from the pandemic’s effects.
Ponmalar Duraisamy, CEO of Vel hi-tech industries, said in the current low tension (LT) tariff III B, industrial units with a power load of up to 112 kilowatts (kW) have to pay Rs 35 a kilowatt monthly as fixed charges and Rs 6.30 a unit as energy charges. “In the proposed tariff, the units should pay Rs 600 a kW monthly as fixed charges and Rs 7.50 a unit as energy charges. On what basis has Tangedco proposed a fixed charge 17 times the existing one?” she asked. Many participants also urged TNERC to hold more public hearings across TN as lakhs of people were unaware of the proposed tariff hike.
Ann Josey from a Pune-based NGO said a one-time 40% tariff hike every seven years and the takeover of Tangedco’s debt by TN government would not solve the utility’s financial crisis. She suggested that TNERC advise the TN government to study the financial crisis of Tangedco and bring about structural changes. TN can take a cue from Maharashtra in this regard. “Twenty-five per cent of Tangedco’s sale is to agricultural consumers, and half of the subsidies of the State government are to provide free power to agriculture. If Tangedco can use solar energy for agricultural feeders, it can reduce its cost on power purchase and subsidies.”
Social activist Thirumurugan Gandhi told the officers that he would organise a protest if they did not disclose how Tangedco accumulated a debt of Rs 1.58 lakh crore and who should be held responsible for it. Many participants from industrial units demanded that TNERC constitute a committee to investigate this. Murugesan, a power producer, said wheeling charge had been proposed to be hiked from 21 paise a unit to Rs 152 a unit.
In total, 94 people registered to speak at the hearing. Tangedco Finance Director K Sundaravadhanan said that all issues would be addressed by August 26 and that they would increase the tariff only if no other option was available.
Panel to probe scams
While many participants from industrial units demanded that TNERC constitute a committee to investigate Tangedco’s debt, some spoke about scams and official malpractices