Tamil Nadu - Chennai

Domestic consumers can play an energetic role

CHENNAI: In the early seventies electricity used by domestic consumers and farm sector accounted for around 50 per cent of industry’s consumption. But this has changed drastically.

A look at the pattern of consumption over the years reveals that the share of agricultural consumption in the overall consumption of power in the State has not undergone any major change but the increasing size of domestic consumers and the changing nature of consumption are making a huge difference. In absolute terms, the category of domestic consumers has seen a quantum jump.

On April 1, 1998, the number of domestic consumers was 72.4 lakh. Ten years on, on April 1, 2008, the figure turned 1.3 crore. [On an average, six lakh consumers are added to the strength of domestic consumers annually]. There are about 18.4 lakh farm connections, 4.64 lakh industrial (low-tension) connections and 6,700 high-tension connections. Against the conventional rule of eight to 10 per cent growth rate projected for domestic consumption, the actual rate exceeded 10 per cent in the recent years.

However, in terms of revenue for the Tamil Nadu Electricity Board (TNEB), the industry still has the largest share with 51 per cent. The domestic category accounts for 18 per cent. For the farm sector, the supply is free. The Tamil Nadu Electricity Regulatory Commission (TNERC), in its order issued last year on tariff subsidy for 2007-2008, recorded that the rate of increase in the domestic category’s consumption was about 11.1 per cent during April-September 2006 compared to the corresponding period in 2005. And, in the case of domestic consumers in the slab over 601 units bimonthly, the figure was 44.6 per cent. It also went on to mention that the rate of increase in consumption of the high-end consumers was 75.8 per cent in Erode region; 69.4 per cent in Chennai South; 42.85 per cent in Tiruchi and 30.72 per cent in Chennai north.

In the recent times, as the personal income of sections of the middle class went up, the demand for electrical appliances also rose. Enquiries with two leading firms selling consumer durable products reveal that the sale of air-conditioners went up at least by 300 per cent.

In view of the rising consumption by the domestic category, sections of other categories of electricity consumers have already started voicing demands for enforcing discipline on the domestic consumers, at least high-end consumers. It is this factor that made the Commission recommend to the TNEB to think of ways to enforce discipline on such consumers, while delivering its orders late last month on a petition filed by the TNEB in the matter of restriction and control of power supply and the levy of excess demand charges and energy charges.

Stating that there were about 1.17 lakh domestic consumers who now consumed over 750 units a month, the TNERC said such a large consumption would generally indicate that air-conditioners were being used. Effective March 15, 2003, the tariff fixed for this category was Rs.4.75 per unit. Of this, the government’s subsidy was Rs.1.7 per unit, which came into effect from June 16, 2004. So, the burden on the consumer was Rs.3.05 per unit only.

“A view may be taken by the TNEB whether such affluent consumers should also be brought under the discipline of Restriction and Control (R&C) measures at least during the ensuing summer. We wish to make it clear that single service connection which serves a group of tenants such as row houses may be exempted from the purview of this restriction," the panel said. [Originally, the government proposed to bring high-end domestic consumers under the ambit of R&C measures by levying higher rate for those who consumed over 600 units in two months and who did not meet the stipulation of 20 per cent reduction in energy consumption.

This was to cover around five lakh consumers out of 1.3 crore domestic consumers. However, the government, later, dropped the move following Opposition’s criticism.)

Energy experts and TNEB officials say that there is enormous scope for the domestic consumers to contribute their mite to the cause of energy conservation by purchasing products that carry energy efficiency labels. The higher the rating is, the greater will be efficiency.

Though the initial cost of such products is higher than others, the consumers can, in a short time, realise the benefits as the power bills see a perceptible fall. So, it is time for the domestic consumers to take to energy conservation in a big way.

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