TNERC okays addl surcharge of ₹0.83 per unit on open access consumers

CHENNAI: Tamil Nadu Electricity Regulatory Commission has approved the Tangedco’s demand for additional surcharge on the energy sourced through exchanges and third parties with effect from February 25 to March 31 this year at Rs 0.83 / Unit.

In its order, TNERC has rejected the utility's demand for levying additional surcharge retrospectively from October 1, 2022 to March 31, 2023. In its petition, Tangedco had sought to fix the additional surcharge at Rs 0.88 per unit.

The open access concept allows industrial and commercial consumers to buy cheaper power directly from private generators. The move was aimed at increasing competitiveness and efficiency in the power sector and the loss of revenue suffered by Tangedco due to open access was compensated through the levy of an additional surcharge.

The additional surcharge applies to consumers who purchase the power through third parties and power exchanges.

Based on data furnished by Tangedco from October 2021 to March 2022, the TNERC arrived at the actual stranded capacity due to open access consumers as 433.37 MW.

The fixed cost obligation on such stranded capacity is calculated as Rs 272.93 crore, it said and allowed the levy of an additional surcharge of Rs 0.83 per unit.

Tamil Nadu Spinning Mills Association chief advisor Dr K Venkatachalam said that with the commission itself has directed the Tangedco to file petition for fixing the additional surcharge on a six month basis regularly, they expect that the levy of the surcharge would continue as such either at the same rate or at a different rate for every six months. "The Electricity (Amendment) Rules 2023 is attempted to be brought-in by the Ministry of Power and already comments have

been called for and the matter is waiting for a Gazette Notification. Once it comes into force, levy of additional surcharge may not happen on the renewable power sourced through Open Access. However, we have to wait and see,” he said.