CHENNAI: In a Deepavali gift for MSMEs (medium and small scale industries), the state government on Friday ordered Tangedco not to collect peak hour power charge from LT-IIIB category industries till the installation of smart meters.
Peak hour charges were being levied from these users, primarily small and medium industries, for power consumption between 6 am and 10 am and 6pm and 10 pm. The state government order, which comes after multiple protests by the MSMEs, also said solar rooftop network charge for these users will be reduced by 50%. The decision will bring relief to about 3.37 lakh small industries across the state.
“Directions have been given to the state energy department to issue a policy directive to the Tamil Nadu Electricity Regulatory Commission to provide subsidy to Tamil Nadu Generation and Distribution Corporation (Tangedco),” the G.O. said.
The state government has agreed to provide a subsidy of `196.10 crore to the power utility to compensate for revenue foregone through non-collection of peak hour charge and reduction of solar roof top network charge. “Steps would be taken to install smart meters as early as possible as the tender process is in progress,” a Tangedco official said.
‘Drop peak hour charges
V Nithiyananthan, general secretary, TN Small and Tiny Industries Association said, “As of now, fixed charges for 1 KW stand at Rs 550. We welcome this move, but want the state to drop peak hour charges permanently.”
No peak hour charge for small industries
State govt removes peak hour power charge and gives 50% reduction in solar roof top network charge for LT-IIIB category industries. The decision is expected to bring relief to 3.37 lakh small industries across Tamil Nadu