Date:28/12/2008 URL: http://www.thehindu.com/2008/12/28/stories/2008122854390400.htm

Tamil Nadu - Chennai

Regulatory body turns down TNEB plea

T.Ramakrishnan

CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) has rejected the Tamil Nadu Electricity Board’s plea to determine excess demand charges to five times the normal rate instead of three times as approved by the Commission last month.

[The charges have to be paid by high-tension industrial units and commercial establishments in the event of violation of the power cut scheme imposed on them].

Dismissing the TNEB’s review petition on the TNERC’s order in the matter of restriction and control (R&C) of power supply and levy of excess demand charges and energy charges, the Commission, in its order issued on Wednesday, stated that there was severe resistance from the Commission’s advisory committee for the levy of the demand charges at five times the normal rate.

Balancing interests

The Commission balanced the interests of the consumers and the distribution licensee (TNEB) and moderated the charges to three times the normal rate.

The excess demand charges and excess energy charges could be levied in addition to the penalty of drastic reduction of power supply to five per cent or 10 per cent for 48 hours in the event of the violation of the R&C measures.

“Raising the excess demand charges to five times the normal rate, in such a context, would be draconian. The Commission does not see merit in this argument,” the order said.

The TNERC also refused to entertain another plea of the Board for allowing disconnection of electricity supply as this was not “tenable in law.”

“No valid ground”

To the Board’s submission of giving effect to the levy of the excess demand charges and excess energy charges retrospectively from November 1 instead of November 28 (when the Commission’s original order was issued), the Commission said “there is no valid ground for reversing this decision of the Commission [of providing prospective effect to the levy of the charges].”

Explaining the procedures followed before the issue of the order, the TNERC said the Board’s contention was untenable. “Consultation with the Advisory Committee must be effective and meaningful. Similarly, valid suggestions, which emerge from public hearing, should be given adequate weightage. Otherwise, the public hearing would be a farce.”

As for the Board’s prayer for the withdrawal of the Commission’s directions on the utilisation of banked wind energy in five monthly equal instalments between December 1, 2008 and April 30, 2009, the TNERC found no merit in the submission.