COIMBATORE: The Madras High Court has ordered an interim stay on cancelling the network charges on rooftop solar used for industrial purposes. A division bench passed the order on April 28 on a petition filed by the TNEB against an individual mill owner. Senior Counsel and DMK MP P Wilson appeared on behalf of TNEB.
In December 2024, the court ordered the cancellation of network charges on rooftop solar on a petition filed by several industrial associations such as SISPA, SIMA, TASMA and RTF, among others. While they had been urging the government to implement the court order, the stay is on an individual respondent.
Industrialists have expressed concerns that using the stay, the TNEB plans to collect network charges from all users. They said TNEB is still collecting network charges despite the court order in December 2024
“Even though several industrial associations filed a caveat petition on the collection of network charges on rooftop solar, the TNEB filed the petition by selecting a textile mill owner from Coimbatore. Based on the petition, the high court ordered a stay on the individual mill. But, the TNEB’s plan is to obtain the stay and collect network charges from all users. This will be detrimental for industrial development in Tamil Nadu,” said Jayabal M, president of Recycle Textile Federation.
Based on the Generic Tariff Order for Grid Interactive PV Solar Energy Generating Systems (GISS), issued by the Tamil Nadu Electricity Regulatory Commission (TNERC) on October 22, 2021, the Tamil Nadu Electricity Distribution Corporation Limited (TNPDCL) has gradually increased the rooftop solar network charges from 0.83 paisa to Rs 1.04 for high tension consumers and Rs 1.27-Rs 1.59 per unit for low tension consumers.
Appealing against the decision, the South India Spinners Association (SISPA) filed a writ petition in the Madras High Court in August 2022, challenging the levy of network charges on rooftop solar generators, said S Jagadesh Chandran, secretary, SISPA.
“The case was heard on August 25, 2022, and after arguments from both sides, the court issued an interim injunction against TNPDCL, directing it not to demand network charges from the members of the petitioner association until further orders. Despite the stay, TNEB collected the charges. An HC order published on March 23 directed the authorities not to collect network charges from our association members who have installed rooftop solar. Despite the order, TNEB imposed the network charges on LT lines,” he said.
Speaking to TNIE, J Radhakrishnan, Additional Chief Secretary, Chairman & Managing Director, TNEB & TNPDCL, said, “As discussed in the current budget session, the government has decided to make policy changes in renewable energy. A consultative meeting will be convened with the participation of all stakeholders. They will be consulted on the grievances relating to network charges. The government does not want to take it adversely through the court. The matter will be resolved soon.”