CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) has directed the state’s power distribution utility Tamil Nadu Power Distribution Corporation Limited (TNPDCL) to install prepaid meters at all existing government institutions, including local bodies, state undertakings, Tamil Nadu Water Supply and Drainage Board (TWAD), and Tamil Nadu Urban Habitat Development Board (TNUHDB).
TNERC also said prepaid meters, where the consumer makes the payment in advance, should be mandatory for all new connections in government institutions.
The directions come amidst rising concerns over payments pending to the financially struggling TNPDCL. TNERC issued these directions in its order dismissing the petition filed by TNPDCL, which sought the waiver of the belated payment surcharge (BPSC) of Rs 137.13 crore owed by local bodies as of March 31, 2023, so as to push them to pay the pending current consumption (CC) charges.
The commission criticised TNPDCL’s proposal to waive BPSC as “irrational and wholly unjustifiable.”
The outstanding CC charges of all local bodies alone stand at Rs 1,618.54 crore. TNERC directed TNPDCL to ensure the recovery of CC charges and BPSC from the defaulting local bodies by initiating swift and appropriate action.
In its order, TNERC said the local bodies had already been given sufficient time to pay BPSC and requests for further concessions are neither fair nor justified.
TNERC pointed out that for low-tension (LT) service connections to local bodies, the BPSC rate is only 0.5% compared to 1.5% for other LT consumers, and local bodies have a longer payment period than other consumers.
TNPDCL, in its petition, cited a decision from the chief secretary’s review meeting on March 8, 2023, which proposed waiving belated payment surcharge if local bodies paid 50% of their dues. Officials had agreed to clear pending CC charges in 24 installments, aiming to settle all dues by June 2025.
Local bodies account for 8.69 lakh electricity connections.
