TANGEDCO to cut subsidies through Aadhaar linking?

Domestic, hut, handloom, power loom, and agriculture service consumers must link their service numbers with Aadhaar.
Former member of Tamil Nadu Electricity Regulatory Commission
Former member of Tamil Nadu Electricity Regulatory Commission

The Tamil Nadu Electricity Board (TNEB) or Tamil Nadu Electricity Regulatory Commission (TNERC) have yet to specify any reason for the ongoing exercise of linking Aadhaar with consumer service numbers.

There is nothing mentioned about the benefit the consumer or TANGEDCO (Tamil Nadu Generation and Distribution Corporation) could derive from the exercise except that it is for administrative purposes. Hence, consumers are clueless about the state government’s intention but are wary that it may result in the withdrawal of any subsidy or benefit they are getting at present.

Domestic, hut, handloom, power loom, and agriculture service consumers must link their service numbers with Aadhaar. There is no need for others, as they do not enjoy any subsidy. Domestic service consumers get 100 units of power free for every billing cycle. The hut service was previously free, but now costs Rs 300 per month until the meter is fixed. The power loom and handloom services are also subsidised, and agriculture services are provided for free.

For all the above consumers, the Tamil Nadu government is paying TANGEDCO the entire subsidy amount; therefore, there is a difference between the tariff rate fixed by the TNERC and the rate actually paid by the consumers. For free power, the entire tariff rate is paid by the government each quarter.

There are 2.3 crore domestic service connections across the state. But the Census figure says that there were 1.45 crore families in TN in 2011, and this might have increased to about 1.6 to 1.7 crore, but there are more than 2 crore ration cards. So it is assumed that there are a number of house owners, who have more than one house in their name.

Similarly, hut service holders may have regular services as well. The same is true for agricultural and weaving services. In each tariff category, it is certain that more than one service might be availed in the name of the same person. As a result, the public is concerned that TANGEDCO may withdraw subsidies for those holding more than one service connection.

Besides, if we go through Paragraph 5.8.5 of Tariff Petition Number 1 of TANGEDCO and Paragraph 5.8.6 of Tariff Order Number 7 of TNERC of 2022, TANGEDCO wanted to charge Rs 450 per month additionally for each service connection if there was more than one service in a household.

Only one service will have the normal domestic tariff and free units. But TNERC ordered TANGEDCO to make physical verification of all domestic services, and if a household has more than one domestic service, to allow only one service as a normal domestic service, and to bring all other additional services in a household under Tariff Number ID. Tariff ID is Rs 8 per unit for all consumed units. To complete this exercise, TNERC has given seven months of time.

Probably, TANGEDCO has resorted to this exercise of Aadhaar linking with service connection to fulfil the orders of the TNERC without conducting physical verification of households. This will certainly result in those who have more than one domestic service connection in a household losing the subsidy. The state government will benefit from this exercise as its grant to TANDEDCO will come down to the extent of a reduction in subsidies to consumers.

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