TNERC directs TNPDCL to recover EB charges or snap connections

CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) has directed the Tamil Nadu Power Distribution Corporation Limited (TNPDCL), erstwhile Tangedco, to collect pending power charges with belated payment surcharge (BPSC) from the local bodies, including Greater Chennai Corporation, or snap power connections.

TNPDCL approached TNERC with a prayer to waive the BPSC for an amount of Rs. 137.13 Crore as on March 2023 in respect of all local bodies on payment of 50 per cent of the outstanding dues based on a decision taken in Chief Secretary's review meeting held on March 8, 2023. The discom also informed the Commission that a decision was taken to allow the local bodies to pay their 50 per cent of the outstanding as 24 monthly installments. As of March 2023, the local bodies had an accumulated outstanding of Rs. 1,618.54 Crore.

The discom explained to the Commission that local bodies, with 8.69 lakh service connections, provide water supply, street lighting and sanitation facilities. “For the above EB connections, around Rs 200 crore was supposed to be paid by all local bodies every billing cycle, but they were unable to meet the CC (current consumption) charges, which accumulated and attracted the BPSC,” the discom explained.

Meanwhile, a status report filed by the TNPDCL revealed that for the 8.68 lakh service connections for which CC charges are due as on March 31, 2023, 50% of the CC dues came from only around 2.80 connections. The status report also disclosed that out of the aggregate dues of Rs 1,481.41 crore towards CC, only Rs 752.21 crore came to be paid or collected from the local bodies.

“From the status report filed by the petitioner, it can be inferred that for over 5.88 lakh connections, the local bodies have not remitted 50% of the CC charges. Only 32% of the local bodies have paid the CC charges due; the remaining have not evinced any interest to avail the concession offered by TNPDCL,” the Commission found.

It has directed the TNPDCL to initiate action to recover CC charges and BPSC due from local bodies by issuing prior notice as contemplated in the Electricity Act 2003, and other regulations that fix reasonable timeline for the payment of arrears.

“However if TNPDCL desires to have the arrears recovered in 24 equal monthly instalments, it can be indicated in the notice subject to the TNPDCL board’s approval,” the Commission said in its order dated April 1. “If a local body makes default in payment of arrears within the timeline set out in the notice or makes default in payment of any monthly instalment mentioned in the notice, TNPDCL shall contemplate action for disconnection in respect of which default has been made on issuance of due notice.”

On the other hand, TNPDCL can provide additional opportunity for the payment of the dues while deciding to effect disconnection to essential services such as street lights, overhead tanks and hospitals of concerned local bodies.

Moreover, the Commission also directed the TNPDCL to initiate swift action for providing pre-paid meters in all existing connections covered under the category of local bodies and also connections covered under TWAD, TNSCB, State Undertaking Companies and all Government owned institutions on top priority. “While effecting new connections for the above categories, fixing of pre-paid meters shall be made mandatory by TNPDCL,” the order said.