The Hindu : SERC's first tariff order today

Online edition of India's National Newspaper
Saturday, Mar 15, 2003

Southern States

Southern States - Tamil Nadu

SERC's first tariff order today

By Our Special Correspondent

CHENNAI March 14. The State Electricity Regulatory Commission today said its first order, in determination of power tariff, would be released at 10.30 a.m. on Saturday.

This will mark the culmination of a process set in motion last year, when the State Government made the Commission fully operational and the Tamil Nadu Electricity Board submitted a detailed proposal for revision of tariff, based on its revenue requirements for the coming year. After holding a series of public hearings, the SERC recently heard the board's submissions and responses to round off the process. It will now come out with the order stipulating the rates for high tension, industrial consumers; low tension, domestic users and certain other special sections.

According to official sources, the SERC will have to settle various issues thrown up during the recent debate: continuing free power to the farm sector, cross-subsidy among various consumers, the number of slabs among domestic consumers and the larger issue of toning up the efficiency and functioning of the TNEB to provide better service and quality power.

Meanwhile, TNEB sources clarified that the board would require Rs. 644 crores to meter all 16.99 lakh agricultural connections and Rs. 209 crores to meter 13.95 lakh hut connections.

Farmers' associations are waiting to find out whether the SERC will indeed scrap the free power scheme and introduce a flat rate. They would like to make distinction between "commercial farming" and traditional farmers, normally dependent on the Cauvery.

They hope that the SERC will also get the TNEB to address power theft and pilferage, including diversion of free power to some industries.

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