The Hindu : Tamil Nadu / Chennai News : Panel backs multi-year power tariff

Online edition of India's National Newspaper
Wednesday, Feb 13, 2008
ePaper | Mobile/PDA Version

Tamil Nadu

Tamil Nadu - Chennai

Panel backs multi-year power tariff

Special Correspondent

“The system will benefit both the consumer and the licensee”

— Photo: R. Ragu

SHAPING THE DRAFT PLAN : S. Kabilan, Chairman, Tamil Nadu Electricity Regulatory Commission, addressing the State Advisory Committee members in Chennai on Tuesday. Rajupandi, member (ex-officio) is in the picture.

CHENNAI: Members of the State Advisory Committee of the Tamil Nadu Electricity Regulatory Commission have welcomed the multi-year tariff framework, as it provides for an element of certainty to all stakeholders.

A consultation meeting was held on Tuesday to frame draft regulations as stipulated in section 61 of the Electricity Act, 2003, and the National Tariff Policy.

After eliciting the views of government officials at the next meeting, the Commission will finalise the regulations.

Chairing the meeting, Commission Chairman S. Kabilan said the multi-year tariff system had been implemented in 11 States. Andhra Pradesh and Karnataka had framed and issued regulations, while Kerala notified it.

“The system will benefit both the consumer and the licensee. The licensee can plan his controlled expenditure besides getting assured returns on investment, while the consumer is protected from frequent tariff hikes. In other words, the multi-year tariff is a tariff-setting exercise done for 3-5 years in one go,” he said.

T.B. Chikkoba, former TNEB Member (Generation), suggested that the licensees present their business plans for five years and prospective plans at least for 15 years.

Speaking on behalf of the textile sector, T. Kannan, Managing Director, Thiagaraja Mills, said energy accounted for 12-15 per cent of the overall cost and urged the Commission to find ways and means of reducing the tariff for the industrial sector.

The Tamil Nadu Electricity Board has a carryover loss of Rs. 6,000 crore and the current year loss of around Rs. 3,000 crore.

The last tariff increase was effected in 2003.

During the 11th Plan, the State envisaged new plants for generation and distribution, with an investment of Rs. 21,000 crore.

Three sub-stations will be set up by April-May in Tirunelveli and Coimbatore districts to evacuate 80 per cent of wind energy on time, Board Chairman S. Machendranathan said.

On the current power scenario, he said: “As of now, it is only a marginal deficit. All units are working full, and we can’t work at higher efficiency than this. There was no load shedding on Monday. Hope, it is the same situation today, too. Our aim is to prioritise load shedding to provide power to the users between 6 and 10 a.m. In case, there is load shedding, it has to be predictable.”

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu