Amendment to implement subsidy for power supply issued

CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) has issued a draft amendment to the TNERC (Procedure for payment of subsidy by the State government) Regulations, 2008 to implement the Revamped Distribution Sector Scheme (RDSS). The Commission has requested the public to suggestion or objection within 15 days.

As per the draft amendment, the State government should pay the subsidy to the Tamil Nadu Generation and Distribution Corporation (Tangedco) on a quarterly basis for all category of consumers.

Presently, the subsidies for domestic consumers are being paid on a monthly basis while subsidies for agricultural and hut consumers are being paid on a half yearly basis. Subsidies for other type consumers are being paind on a quarterly basis.

Another amendment mandate the Tangedco to reconcile the actual subsidy received with actual consumption within 60 days from the closure of quarterly accounts and send proposal for adjustment of subsidy. Presently, the Tangedco is allowed to send the proposal within 6 months from the close of financial year. As practice, the government would release the advance subsidy based on approximate values.

In an explanatory statement, the TNERC clarified that the union government has given standard operating procedure under RDSS, which seeks to improve the operational efficiencies and financial sustainability of DISCOMs.

As per policy directives, the state government is extending free supply, concessional tariff to different category of consumers like domestic, places of public worship, handloom, powerlooms, hut service, agricultur, HT lift irrigation.

"Government of Tamil Nadu has committed to provide subsidy for the same to meet the shortfall in revenue of Tangedco. Necessary budget provision is made in the Budget and the subsidy is released to Tangedco upfront based on TNERC orders on assessment of subsidy," it said.

The statement added that the commission has hitherto issues provisional subsidy order every year alongwith true-up of subsidy for the year prior to previous year based on the proposal submitted by Tangedco.

Objections or suggestion on the draft should be sent to Secretary, Tamil Nadu Electricity Regulatory Commission, 4th Floor, SIDCO Corporate Office Building, Thiru Vi Ka Industrial Park, Guindy, Chennai 600032.