The basic facts on Tariff Revision in the form of Questions and answer:

Q1:
“The proposed tariff hike is very high and should not be allowed”.
Ans:
i. The tariff has been marginally increased during the year 2010-11 for certain
categories of consumers i.e Domestic consumers consuming more than 600 units
bi-monthly, Industrial and Commercial consumers after a gap of seven years
(previous Tariff Order issued w.e.f.16.3.2003). However, the operating cost
(68%), the coal and oil cost (229%) and power purchase cost (235%) have
increased drastically whereas the tariff for the industrial consumers remains
almost the same as that of 2003.
ii. The average cost of supply and the average rate of realization from the year
2005-06 to 2011-12 are detailed below:
year average cost of average rate of Loss per unit
supply Rs./unit realization Rs./unit
2005-06 3.52 3.07 (-) 0.45
2006-07 3.55 3.10 (-) 0.45
2007-08 4.00 3.19 (-) 0.81
2008-09 4.86 3.13 (-) 1.73
2009-10 5.09 3.11 (-) 1.98
2010-11 5.55 3.43 (-) 2.12
2011-12 6.12 3.73 (-) 2.39
2012-13 5.98 3.79 (-) 2.19
iii) From the above, it is obvious that the TANGEDCO is making loss for every
unit of sale.
Iv) In order to complete the on going power projects and subsequent reduction
in the quantum of power cut and for day to day operation of TANGEDCO, the
tariff increase proposed is very essential.
v. However, as per Electricity Act, 2003, the Hon’ble TNERC is only vested with
power to categorise and fix the tariff for all the electricity consumers.
Q 2:
The tariff for Agriculture and Hut consumers has been proposed to
increase drastically. “Is it the first step to introduce tariff for this category and
withdrawal of Free Electricity to this category”?
Ans:
Free supply to Agriculture and Hut consumers will be continued and
electricity charges will be paid by the Government of Tamil Nadu as subsidy.
Q 3:
“The domestic subsidy for the consumption 0-200 units for those who
consume under the bracket 200 units to 500 units bimonthly, has been
withdrawn. Whether the provision of subsidy will be continued?
Answer:
S.No. Category Tariff rate Subsidy Payable % of
in Rs/unit in by subsidy
Rs/unit consumer of tariff
in Rs/unit rate
1. Below Poverty line
Consumer who consumes below 3.00 1.50 1.50 50%
100 units bi-monthly.
2. Lower income
Consumer who consumes above 3.00 1.00 2.00 33%
100 units bimonthly and below
200 units.
3. Middle income
Consumer who consumes above
200 units and below 500 units
0-200 units 3.00 0 3.00 Nil
200-500 units 4.00 0.50 3.50 12.5%
From the above it can be seen that the below poverty line consumers are
provided with more subsidy and subsidy is being decreased for others according
to the income and capacity of the consumer to pay.
The subsidy for high income group consumer who consumes above 500
units alone has been proposed for withdrawal, since they can able to pay their
Current Consumption charges.
Q 4:
The tariff for HT Industrial consumers should not be raised.
Ans:
As per National Tariff Policy, tariff has to be fixed +20 % of cost of Supply.
The tariff details for HT Industrial Consumers after proposed tariff revision are
as follows:
S.no Category Estimated Rate of Estimated % of cost of
Realisation for the Average Cost supply
proposed tariff rate of supply in
(2012-13) in Rs/unit Rs/unit for
2012-13
1. HT Industrial 6.38 5.98 6.69

From this it can be seen that tariff for HT Industrial consumers even after
considering the proposed tariff is well below +20% of cost of supply.
Q 5:
The tariff for LT Commercial & LT Industrial consumers has been
proposed to raise heavily and the same should not be done?
Ans:
As per National Tariff Policy, tariff has to be fixed +20 % of cost of
Supply. The tariff details for commercial Consumers and LT Industrial after
proposed tariff revision are as follows:

S.no Category Estimated Rate of Estimated % of cost of

Realisation for the Average Cost supply
proposed tariff rate of supply in
(2012-13) in Rs/unit for
Rs/unit 2012-13
1. HT Commercial 7.59 5.98 26.92
2. LT Commercial 8.36 5.98 39.80
3. LT Industrial 8.72 5.98 45.82
 At present the tariff for Hut has been increased 400% and tariff for
Agriculture has been increased as 589 % . The tariff details of Agriculture and
Hut consumers after proposed tariff revision are as follows:
S.no Category Estimated Rate of Estimated % of cost of
Realisation for the Average Cost
supply
proposed tariff rate of supply in
(2012-13) in Rs/unit Rs/unit for
2012-13
1. LT Agriculture 1.75 5.98 -70.74
2. LT Hut 2.76 5.98 -53.85

From this it can be seen that the proposed tariff for Agriculture and Hut
consumers is well below the + 20% of cost of supply. It has been proposed to
reduce the tariff for Commercial and LT Industrial categories and increase the
tariff for Agriculture and Hut category in phased manner.

Q6: How Solar Power Generating Plants are being promoted in Tamil Nadu.
Ans: Generation Based Incentive scheme (GBI) was announced by MNRE for
Grid Interactive Solar power generation projects during the year 2009.
The power purchase price fixed under the above scheme is Rs.15 per unit.
TANGEDCO will pay Rs. 4.50/- and Rs.10.50/- will be paid by MNRE as GBI to the
company. M/s. Sapphire Industrial Infrastructures Private Limited have
established 5 MW SPV power plant at Rettai Pillai Iynarkulam village, New
Kallatthur , Sivagangai Tk, Sivgangai district. M/s B & G Solar Pvt. Limited is the
first solar power developer to establish 1 MW solar PV power plant at
Nagapattinam. Only one developer from Tamil Nadu (i.e) M/s. CCCL
Infrastructure Ltd has been selected for establishment of 5 MW Solar PV power
plant at Tuticorin District and erection is under process.
Q7: Connected load limit of 10 HP has to be increased to 20 Hp or 25 HP under
LT tariff III A (1) and (2)
Ans: In order to encourage small industries and for economically weaker section,
separate category has been introduced (LT tariff III A (1) and (2) ) with lesser
tariff rate than the other industrial consumers with a load restriction of 10HP. If
they can able to install 20 HP or more, they will be treated as that of Industrial
consumers and they will be charged under higher tariff ( Industrial tariff).
Moreover, as per EA, 2003, the Hon’ble TNERC is only vested with power to
categorize and fix the tariff for all the electricity consumers.
Q8: To stop free electricity to all the consumers and to fix the reasonable rate
for all consumers.
Ans: As per the policy direction of GOTN and orders of TNERC, the free
electricity is being extended to certain categories of consumers for which GOTN
is providing tariff subsidy in order to compensate the revenue loss due to the
above policy direction. In the proposed tariff revision petition, the tariff rate for
the hut consumers has been increased from Rs.10/Month/service to
Rs.60/Service/Month (400%) and the rate for the agriculture consumers has
been increased from Rs.250/HP/annum to Rs.1750/HP/annum (589%) and
power loom consumers tariff hike is proposed from Rs.1.00 / to Rs.4.50/unit. For
any change, policy decision has to be taken by the GOTN.
Q9: Street light SCs to be maintained by the TANGEDCO instead of local bodies.
Ans: Previously, the street light SCs are maintained by the Board. Now, as per
the GOTN’s direction, the SCs are being effected by the TANGEDCO and
maintained by the local bodies. For any change, policy decision has to be taken
by the GOTN.
Q10: Assessment may be made Monthly.
Ans: Since different slabs are available for monthly and bi-monthly consumption,
the consumption charge will not vary whether it is monyhly or bi-monthly
assessment. Hence, there is no difference in the cc charges payable by the
consumers.
Q11: There will be a huge revenue leakage due to theft of energy. What are all
the action taken to curb the theft.
Ans: In Tamil Nadu Generation and Distribution Corporation Limited, 17
Enforcement Squads and 1 Flying squad/Chennai are functioning under the direct
control of Inspector General of Police/Vigilance to curtail theft of energy.
Activities carried out to curb misuse and theft of Electricity:-
1) Frequent inspections are being carried out in industries availing HT supply.
2) Surprise inspections on suspected Industries are being carried out during
night hours and on holidays.
3) If the consumption pattern suddenly drops or boosts by 20%, then the
respective service connections are being inspected.
4) Routine inspections are being carried out in HT & LT service connections.
5) Inspections are also being conducted based on petitions and secret
information received.
6) Wide publicity on theft of energy is being carried out to create awareness
on theft/misuse of Electricity among the public through bills pasted on the
notice boards in all the section/sub-division/division offices etc., and
through advertisements in leading news papers.
7) To detect un-accounted energy, studies are being carried out on the HT
feeders.
A target of Rs.200 crores has been fixed for the year 2011-12. To achieve this
target, intensive inspections have been carried out and 19 Nos. of power
thefts in HT service connections and 3015 Nos. of power thefts in LT service
connections have been detected as on 31.08.2011, and a sum of Rs.19.42
crores has been levied as provisional assessment and Rs.2.22 crores has been
collected as compounding charges.
Q12: New power projects are to be completed as early possible.

Ans: All efforts are being taken to complete and commission the ongoing power
projects in time.

Q 13: what are all the actions taken to increase the generating capacity of the
TNEB?

Ans: It is proposed to add additional capacity of 799.5 MW and 3869.5 MW

during the year 2011-12 and 2012-13.

Q 14: Previously assessment of meter reading was made from 16 th to 30 th

of every month and payment from 1 st to 15 th preceding month. Now due to
30 days assessment, it is very difficult to remember and pay the CC charges.

Ans: The 30 days assessment and collection facility has been introduced to
facilitate the consumers by giving 20 days time period for making their payments
so as to reduce the peak days crowd at the collection counters by evenly
distributing due dates for making payment throughout the month.

Q 15: What are the total amount of TANGEDCO borrowing?

Ans: Total borrowing of the Board is Rs.45,000/- Crs.

Q16: How the TANGEDCO is managing with the huge deficit?

Ans: Previously, when the loss level of the Board was less, TNEB was managing
by borrowing the fund from the Financial institutions and with State Government
guarantee for some loans. After bifurcation of TNEB into TANGEDCO and
TANTRANSCO, the financial institutions are refusing to provide loans since the
revenue loss becomes huge. Hence, in order to smooth and further operation of
the TANGEDCO, tariff revision is vital.
Q17 : Whether the Segregation of Asset for each function Transmission and
Distribution has been completed?
Ans: The GOTN has issued necessary orders for one more year of time extension
to finalise the assets transfer i.e. 31.10.2012.
Q 18 : Whether Merit of Order has been followed for the purchase of power?
Ans: Considering demand basis, merit Order is being followed to the extent
possible.
Q. 19. it is noted that the service connections are not disconnected for the non
payment of CC charges within the due date in entire state. Due to this, there is a
revenue leakage. Whether, the disconnection is being made for non payment of
CC charges within due date.
Ans: All the field officers are strictly instructed to disconnect the services
immediately for non payment after the due date.
Q 20: TANGEDCO to create awareness among the consumers about Energy
Conservation – Use of Star Labelled appliances, CFL etc.
Ans: DSM Activities:

For adoption of BEE star labeled domestic appliances, BEE is creating
awareness among public. TANGEDCO is also emphasizing the need for use of
the star labeled appliances in all its seminars / training programmes.

The Govt. of Tamil Nadu has issued G.O.126 dt 10.11.08 on the energy
conservation in Govt./PSU departments. All heads of department have been
addressed to follow the guidelines given in the GO and monitored by
TANGEDCO.

Regular meetings are conducted with Public Works Department, Chennai
Metropolitan Water Supply & Sewerage Board and Chennai Corporation and
other Corporations for review of implementation of Demand side
management measures in their departments.

The Govt. of Tamil Nadu has issued another G.O 75 dt. 20.08.10 to ban the
usage of Incandescent Bulbs (ICBs) in all Govt. Departments, Public Sector
Undertakings, Boards, Societies and Local Bodies. All District collectors have
been addressed for issuance of instructions to their officers for adherence of
the G.O.

The energy conservation reports in respect of Govt./PSU buildings are
collected from the Regions/Circles and reviewed/monitored periodically at
Head Quarters to assess the energy savings.

The energy conservation measures in respect of TANGEDCO buildings are
also monitored periodically and savings assessed.

Energy conservation day is celebrated every year on 14th December and
Energy conservation week during 14th December to 20th December.

Energy conservation awareness programmes are conducted for schools,
Colleges and Public regularly through training wing of TANGEDCO.

The Ministry of Power, Government of India through the Bureau of Energy
Efficiency (BEE) has formulated “Bachat Lamp Yojana” (BLY) scheme in
domestic sector.

The Energy Department has also issued G.O. Ms. No. 87 Energy (C2)
Department dated 14.09.2010 for the implementation of this scheme in
TamilNadu.

Implementation of the BLY scheme in Tamil Nadu may account to the peak
load relief of approx. 500-600 MW.

TANGEDCO has awarded the contract for implementing the BLY scheme in
Tamil Nadu with 60% of the project areas in 22 Electricity Distribution
Circle (EDCs).

The Government of Tamil Nadu has issued GO NO.7 dt 04.02.2011 for the
replacement of existing inefficient pumpsets by Energy Efficient pumpsets to
save energy and 242 nos of Energy Efficient pumpsets have been issued to
the willing farmers.