Consumers' body supports bifurcation of Tangedco and creation of new company
As per the proposal, Tangedco will become Tangedco, Tandiscom and TN Renewable Energy Corporation.
Representative Image (Photo:File)
CHENNAI: Welcoming the decision to bifurcate Tangedco and creation of new company, Tamil Nadu Electricity Consumers' Association (TECA) has opined that the restructuring will help in power generation using renewable sources and reduce thermal power.
In a statement, N Pradeep, president of the association, said that the association welcomes the decision of TANGEDCO seeking State government nod for restructuring.
"This decision was taken by the board of directors of TANGEDCO following the recommendation from consulting firm Ernst and Young. The Electricity Act 2003 also mandates this. It is needed because the utilities are already revolving under heavy loss," he said.
As per the proposal, Tangedco will become Tangedco, Tandiscom and TN Renewable Energy Corporation.
Separation of TANGEDCO will make comfort for taking measures, conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, he opined.
He added that formation of a new company for renewable energy would enable them to get loans for development of power projects.
"This will also help to attain the growth of cheapest power through renewable sources and thus to reduce the generation of thermal power. By increasing the installed capacity of renewable power, we can reduce the carbon emission intensity," the association said.
