Compensate revenue loss of Tangedco: Energy dept writes to TNERC

CHENNAI: The State Energy Department has written to the Tamil Nadu Electricity Regulatory Commission to provide subsidy to Tangedco to compensate for the revenue loss towards the reduction in Time of Day (ToD) charges from 25 per cent to 15 per cent for LT industries (III-B) during peak hours.

In a letter to the TNERC secretary, Ramesh Chand Meena, additional chief secretary, the energy department said that after examining the request of Tangedco CMD, they are hereby issuing a commitment letter under section 65 of the Electricity Act, 2003 for the provision of subsidy to compensate the revenue loss of the utility.

Following the hike in electricity tariff and fixed charges and the introduction of the ToD charges for the low tension industries consumer category, the Micro, Small and Medium Enterprises (MSMEs) industries were protesting against it and wanted the government to roll (back the tariff revision, in particular, fixed charges and the ToD charges. Under the ToD, the industries consumers have to pay 25 per cent extra on the energy charges for consumption during the 6 am to 10 am and 6 pm to 10 pm and a five per cent incentive in the energy charges for the consumption during the 10 pm to 5 am.

MSME department, in its order dated November 8, 2022, has issued orders by reducing the ToD charges for the LT Industries (III-B) during peak hours.

Sources in Tangedco said that the state government would incur an additional expenditure of Rs 120 crore due to the subsidy for reducing the ToD charges from 25 per cent to 15 per cent.