The Hindu Business Line : Regulator fixes tariff subsidy to TNEB at Rs 1,412.58 cr

Chennai May 10 The Tamil Nadu Electricity Regulatory Commission (TNERC) has fixed the tariff subsidy payable by the State Government to the Tamil Nadu Electricity Board at Rs 1,412.58 crore for 2007-08.

The Electricity Board had on February 9, applied to the commission to direct the State Government to pay the subsidy of Rs 1,479.78 crore.

The tariff subsidy is payable for supplying free power or supplying power at reduced tariffs to some sections of the consumers. The State Government supplies free electricity to agriculture, handlooms and hut dwellers; and at reduced tariffs to domestic consumers, places of worship and powerlooms.

Domestic consumers

The TNEB had sought a tariff subsidy of Rs 1,137.38 crore for 2007-08 but the commission has allowed Rs 1,073.95 crore.

The order dated February 5,2007 states that the commission has fixed the subsidy for the domestic consumers for 2007-08 based on a six per cent increase over the tariff subsidy of Rs 1,013.16 paid in 2006-07.

This, in turn, was allowed with a six per cent increase over the subsidy of Rs 955.18 crore based on actual consumption in 2005-06. The commission has said that the TNEB should furnish the actual consumption figures for 2006-07 before June 30.

Reality Check

The TNERC has proposed to do a reality check of the particulars of consumption furnished for any one of the regions in Chennai, which has been fully computerised, for four months.

The statement of consumption assessment by the Regional Chief Engineers (TNEB) from April 1, 2006 to September 30, 2006, showed a 8.37 per cent increase in consumer base and a 11.14 per cent increase in consumption over the corresponding period in the previous year. The increase in consumption in the slab above 601 units, which carries a tariff of over Rs 4.75 a unit, was 44.60 per cent.

The TNERC also said that there were errors in the statement furnished by the Chief Engineers of some regions in Tirunelveli and Coimbatore. The increase in consumption in the slab above 601 units was high - Erode region 75.84 per cent; Tiruchi 42.85 per cent; Chennai South 69.43 per cent and Chennai North 30.72 per cent.

The Accountant General during the audit of the commission has said that in the absence of the basic documents with the board, the TNERC was not able to ensure correct subsidy claim by the TNEB.

The Commission has asked the TNEB to provide before June 30,2007, the connected load as on March 31, 2007.

It has allowed the subsidy based on the actual connected load of 80.47 lakh HP as on March 31, 2006 and assuming a growth of 1.3 per cent, which would make the connected load at 81.51 lakh HP.

Other categories

The TNEB has said that there is a six per cent growth in the power loom consumers eligible for a reduced tariff. The growth in connected load of agricultural consumers under the self-financing scheme is 12.69 per cent.

Since the scheme of free power supply up to 100 units bimonthly for handloom weavers and 500 units bimonthly for power loom weavers was introduced on August 1, 2006, the TNEB has said the reconciliation of actual consumption figures would be done at the end of 2006-07.

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