CHENNAI: The proposed tariff revision by Tamil Nadu Generation and Distribution Corp Ltd (Tangedco) is unlikely to reduce the State utility’s revenue deficit. Tangedco is expected to reduce its revenue gap by Rs 7,563.39 crore (46.9%) in the next financial year (2023-24) from the current year’s gap of Rs 16,158.28 crore, but the gap will increase by Rs 11,089.47 crore (22.5%) in 2024-25 due to the high transmission and generation costs.
A senior official told TNIE that though the State has more renewable plants such as wind and solar, the State-owned power utility is heavily dependent on thermal-based power plants and private power purchases to meet the rising demand.
“Tangedco will generate over Rs 22,000 crore additionally every year through the tariff revision, but the utility needs to spend more than Rs 32,000 crore for private purchases. Sometimes, Tangedco procures power from the exchange at market prices. Besides, the other expenses including generation cost, transmission cost, and interest on loans are also high,” said the official.
The official also pointed out that the power utility planned to add a capacity of 6,220 MW to the grid in the next five years. Hence, there would be a chance to reduce the private purchase and its cost gradually. Another official said Tangedco has made its best efforts to reduce distribution losses from 18.30% in 2016-17 to 11.62% in 2021-22. Tangedco predicted it would be 10% in 2023-24.
At the same time, the official accepted that 100% collection efficiency every year is not practicable for the electricity distribution business. However, efforts are on through the installation of pre-paid smart meters.
Drop move to collect rent for meters: PMK
PMK has condemned Tangedco for its proposal to collect rental charges for smart and digital meters. Party chief Dr Anbumani Ramadoss said the move to collect Rs 120 as rent for a digital meter and Rs 350 for a smart meter every two months is an “economic attack” on the public. These meters would help Tangedco get about 15% more revenue as readings would be accurate and electricity losses would be prevented, he said
