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Power panel initiates process to fix open-access regime charges

T. Ramakrishnan

New regime allows consumers to buy power from utilities other than Tamil Nadu Electricity Board


  • The transmission system's capacity is around 6,650 MW
  • Public's views to proposals submitted by Electricity Board sought
  • TNEB's petition to be available on Commission's website
  • The transmission system's capacity is around 6,650 MW
  • Public's views to proposals submitted by Electricity Board sought
  • TNEB's petition to be available on Commission's website
  • Board hopes to get Rs. 774 crores as transmission charges for 2005-06

    CHENNAI: The Tamil Nadu Electricity Regulatory Commission has set in motion the consultative process for fixing various charges under the open-access regime.

    It has sought the public's views and comments on the proposals submitted by the Tamil Nadu Electricity Board that have specified the charges for transmission, wheeling, cross subsidy surcharge and additional surcharge. The TNEB's petition will be available on the Commission's website (www. tnerc.org) shortly.

    High-tension consumers

    The open-access regime allows consumers to buy power from utilities other than the TNEB. Even power produced from captive generating plants can be purchased. Initially, only high-tension consumers will be allowed this facility.

    There will be two categories of open-access customers — long-term and short-term. Long-term customers are those who wish to avail open-access for five years or more. The duration for short-term customers is five years and less. But, in the latter's case, the permission will be given for one year at a time and renewed every year.

    Under the Electricity Act, the Commission is required to prescribe the charges. The TNEB has submitted the proposal, as its infrastructure will be used for the system.

    According to the TNEB's petition, transmission charges for long-term customers have been fixed at Rs. 3,187 per MW (megawatt) a day and for short-term, at Rs. 1,594 for a MW a day. The entire transmission system's capacity is around 6,650 MW and the transmission charges to be received from users are about Rs. 774 crore for 2005-06.

    As regards wheeling charges, long-term customers have to pay 19.54 paise per unit, while it is 9.77 paise per unit for short-term customers.

    Around 47,500 million units of energy can be fed into the distribution system this year and the annual wheeling charges have been estimated at nearly Rs. 930 crores.

    Cross subsidy

    Cross subsidy surcharge will be levied on those who have been cross-subsidising the supply but are now planning to move out of the TNEB system. In other words, the surcharge is meant for ensuring the financial viability of the TNEB after the exit of high-paying customers.

    Depending upon the sub-classification, the proposed surcharge varies from 338. 25 paise to 160.55 paise per unit to 46.44 paise per unit for high-tension consumers while it is in the range of 196.81 paise per unit to 81.81 paise per unit for low-tension consumers. The Board has suggested two options for determining the additional surcharge without specifying any calculation.

    After obtaining consumers' views, the Commission will hold a public hearing in Chennai.

    The last date for submission of the views to the TNERC is November 30.

    Several power experts say it is too short a period to file the responses.

    As the open-access system is a new concept, the consumers require more time to go through the proposals and frame their views before sending their responses, the experts add.

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