Officials clueless on 100 units free power

TANGEDCO’s rate slabs are: 1 to 100 units – first slab, 101 to 200 units – second slab, 201 to 500 units – third slab. If the concession is given in the first slab, it entails not much loss to the state power major whereas if it is placed in the last slab it will ensure that not many go above the slab thereby affecting the corporation’s finances. The concession would entail the state government providing a grant of Rs 1,607 crore to the corporation at the rate of Rs 134 crore a month.  

Though the government has issued the necessary GO (Government Order) it is yet to reach the corporation. Action can be taken only after it gets concurrence from the TNERC (TN Electricity Regulatory Commission), sources say. 

Officials feel getting TNERC approval could be problematic. Commission member S Nagalsamy had raised points on the state government purchasing power from outside the state at high rates. The government would be cautious in negotiating with TNERC, sources said.

Meanwhile, PMK founder Dr S Ramadoss has described the concession as a “gimmick” as there would not be much relief for 1.11 crore consumers who use more than 100 units. Though AIADMK promised to deduct 100 units from the bimonthly bill, in practice what is planned is deduction of the amount for 100 units. While 

100 units alone (Rs 120) have to be billed for bimonthly consumption of 200 units, TNEB bills Rs 233 instead. For 400 units consumed, charges of Rs 730 should be levied for 300 units whereas TANGEDCO plans to collect Rs 830, he said in a press release.

Consumption charges of Rs 2790 are levied for 600 units now. If 100 units are reduced, charges for 500 units would be Rs 1330 ensuring a saving of Rs 1460. But TANGEDCO plans to reduce only Rs 350 (for 100 units) from Rs 2790. Thus the announcement would not benefit consumers, he concluded.