Tamil Nadu Electricity Minister V Senthilbalaji said the projected revenue increase as a result of the power tariff revision will see a drop on account of a cut in tariff for certain segments.
“With the tariff increase, we expected a ₹19,000 crore increase in Tangedco’s revenue per year. However, with the reduction of tariffs in certain categories for MSMEs, handloom and powerloom sectors, among others, we are getting an additional revenue of only about ₹1,000 crore per month (as against the projected ₹1,583 crore),” a statement quoting the Minister said.
Tangedco’s revised tariff structure for domestic and other categories came into effect this September after the Tamil Nadu Electricity Regulatory Commission (TNERC) accepted the tariff increase proposed by Tangedco. The regulator has also allowed for an annual revision of tariffs going forward.
The previous tariff order was issued in August 2017, and since then, no tariff orders have been issued. As a result, the prevailing tariff rates were inadequate to cover the increasing power purchase costs.
In FY22, Tangedco clocked a total revenue of ₹72,096 crore and incurred a revenue loss of ₹11,213 crore, down from ₹13,407 crore in FY21, when it posted a revenue of ₹63,389 crore.
The minister said Tangedco was collecting details on the damages caused by cyclone Mandous, and the details will be shared once the exercise is completed.
The total installed capacity of Tangedco is 32,500 MW, and there is a plan to increase the capacity to 65,000 MW by 2030.
He said Tangedco has taken various measures to rationalise costs and improve revenues. The sale of fly ash fetched ₹7 crore in revenue in FY22, and this year it has doubled and stands at about ₹14 crore. Also, interest payments towards REC (Rural Electrification Corporation) have come down from the previous level of ₹84 crore per year as it has reduced the interest rate from 13 per cent to 10 per cent. Tangedco has taken ₹6,600 crore loan from REC
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