The Hindu Business Line : ‘State proposal to disconnect power supply violates Act’

Chennai, Oct. 24 The Tamil Nadu Electricity Regulatory Commission (TNERC) has held that the State Government’s proposal to disconnect power supply to industrial and commercial consumers drawing power during evening peak hours violates the Electricity Act 2003.

It has also said that the proportionate reduction of the maximum demand charges, in line with the limitation on power consumed by them, is inconsistent with its own order, Tariff Order 2003.

The Tamil Nadu Electricity Board (TNEB) has agreed to submit appropriate proposals to implement these changes, which the TNERC will consider before calling for a meeting of the State Advisory Committee and a public hearing.

The order was passed on Friday on a petition from the electricity board, seeking approval for levy of 50 per cent additional charge on LT industrial and commercial consumers who exceed a consumption limit. TNEB’s limit was set at 80 per cent of their previous year’s average bi-monthly consumption subject to a minimum limit of 2,000 units.

The petition follows a letter from the State Energy Department directing the TNEB to levy additional charges based on clause 38 of the Tamil Nadu Electricity Distribution Code 2004 of the TNERC. The Commission said though the petition is limited to levy of the additional charge, it needs to refer to two other clauses in the Government’s letter.

One directs TNEB to disconnect supply to those violating the restriction of consumption during evening peak hours. TNERC has said this direction violates Section 56 of the Electricity Act 2003 (Central Act 36 of 2003), which allows disconnection of supply only for default of payment of electricity charges.

Another clause in the Government’s letter prescribes proportionate reduction of the maximum demand charges in line with the 80 per cent limit. This is inconsistent with the TNERC’s own Tariff Order 2003. The tariff order only provides for scaling down the sanctioned demand or the order will have to be modified.

TNEB has agreed to submit an appropriate proposal in this regard, TNERC said.

Separate proposals

TNEB has said that it would soon come up with separate proposals for the reduction of maximum demand charges and levy of additional charges. TNERC has said it will hold a meeting of the State Advisory Committee and public hearing after considering the proposals. It has pointed out that the electricity board has said the levy of additional charge will affect over 77,000 consumers.

The Electricity Act 2003 empowers the electricity regulatory commission to determine the tariff for retail sale of electricity; Section 64(3) of the Act mandates the Commission to consider suggestions and objections of the public for any tariff proposal; and Section 88 obliges it to consult the State Advisory Committee on matters of protection consumer interest.

TNERC said over the last two weeks it has received a number of representations from consumer organisation and activists representing that the clause violates the Electricity Act 2003.

The Tamil Nadu Government recently came out with a set of regulations for industrial, residential and agricultural power consumers following an acute shortage of power in the State. It has ordered a schedule of power cuts for industrial segment and said that they cannot draw power from the State grid in the peak demand period between 6 pm and 10 pm.