Madras HC directs Tangedco to issue revised bill to SISPA member units

L N Revathy | Updated on August 15, 2020

The Madras High Court has directed Tamil Nadu Generation and Distribution Corporation (Tangedco) to issue a revised bill to members of the South India Spinners Association (SISPA).

The Court’s directive is in response to a writ filed by SISPA seeking withdrawal of the maximum demand charges of 90 per cent for April and May 2020, and assessing the same at 20 per cent or to the extent of recorded demand.

SISPA had appealed for refund of the amount collected or for adjusting the same in future bill till May 17, 2020 or extended period of lock down as also against the levy of Power Factor (PF) penalty.

The Court in its order directed Tangedco to issue a revised bill by applying Regulation 6(b) of the Supply Code for the period the establishments remained shut.

If the Corporation had recovered the dues from any member unit of SISPA, “the bill shall be reworked in accordance with the direction given in Clause (a) and the excess amount adjusted towards future bills.”

Further, if Tangedco had adjusted the due from the member unit’s security deposit and had sought the unit to pay the amount towards additional security deposit on that count, “the said claim shall be withdrawn and calculation of the additional security deposit done independently under Regulation 5 of the Supply Code.”

The Court categorically stated that Tangedco should not levy compensation charges towards low PF from the petitioners during the period of lockdown. Should such a levy be made in future, a show cause notice should be issued to the consumer before levying any compensation under Clause of the Tariff Regulation.

However, the said directions would apply only for the period during which the establishment is under total lock down due to orders passed by the Government, the Order stated.

SISPA president N Murugesan said that the Court has rendered justice to the association’s plea.

Published on August 15, 2020

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