CHENNAI: In a significant judgment, the Madras High Court has set aside an order of a single judge who ruled against Tamil Nadu Power Distribution Corporation Limited’s (TNPDCL) demand for Rs 700 crore for the consumption of high tension (HT) power by certain industrial firms, following the withdrawal of the concessional method of calculating demand (called “deemed demand”) for HT power consumers.
The order, which would result in the power utility to collect the full demand amount, was passed by a division bench of justices G Jayachandran and Mummineni Sudheer Kumar on Friday while allowing a batch of about 100 appeals filed by TNPDCL, formerly Tangedco.
As per the interim orders, the companies concerned had deposited Rs 350 crore and so, they have to pay the remaining Rs 350 crore now.
The bench directed them to pay this amount within three months. Senior counsel P Wilson appeared for TNPDCL.
The Tamil Nadu Electricity Regulatory Commission (TNERC), in 2006, offered the concessional method of calculating demand (deemed demand) for HT power consumers having their own captive generating plants/open access consumption, but who also draw power from TNPDCL. However, the scheme was withdrawn in 2012.
Claiming that they were still entitled to avail of the benefits, various HT power consumers moved the court.
A single judge, in 2018, allowed their petitions. Challenging this order, the TNPDCL filed the appeals.
In concessional calculation of deemed demand, certain HT consumers are allowed to have their demand charges calculated at a reduced or “deemed” rate, often under specific conditions.