Date:22/10/2008 URL: http://www.thehindu.com/2008/10/22/stories/2008102250330100.htm

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Average annual consumption to determine higher power tariff

T. Ramakrishnan

It does not apply if usage is above 600 units but less than 750 in two months

CHENNAI: The average of the last one year’s energy consumption will be regarded as the base for those domestic consumers who are required to reduce their consumption by 20 per cent, according to Tamil Nadu Electricity Board sources.

The State government’s directive for 20 per cent reduction in energy consumption is applicable to those domestic consumers who consume more than 600 units in two months. Those who do not meet the stipulation will have to pay 50 per cent more than the normal rate for the excess units consumed.

As per the existing tariff structure, the normal rate for consumption in excess of 600 units is Rs. 3.05 per unit.

Explaining the move, the sources say that in the case of a domestic consumer whose average consumption is 750 units in two months, the consumer concerned will be required to reduce the consumption to 600 units or bring it down by 150 units, accounting for 20 per cent. Otherwise, the consumer will have to pay Rs. 4.58 paise per unit for the consumption in excess of 600 units.

Giving another instance, the sources say that if the average consumption of 1,000 units in two months is brought down to 800 units, the higher rate will not apply.

The sources clarify that in the case of consumers whose average consumption is above 600 units but less than 750 units, the ceiling is 600 units. The higher rate will not apply even if the reduction is less than 20 per cent so long as the total consumption does not exceed 600 units.

Asked whether the government is empowered to levy the additional charge when there is the State Electricity Regulatory Commission, a senior government official said according to an interpretation under section 38 of the distribution code, the government could give directions to the TNEB in times of emergency. Besides, the administration did not seek to levy new tariff. What it had sought to do is to levy penalty, which is based on the existing tariff structure, the official said, adding that the Board would, however, approach the Commission in this connection.