TANGEDCO

The Tamil Nadu Electricity Regulatory Commission (TNERC) has issued an order in response to a petition filed by the Tamil Nadu Generation and Distribution Corporation (TANGEDCO), determining an additional surcharge of ?0.29 per unit for open access consumers. This surcharge will be applicable from August 8, 2024, to September 30, 2024.  

The order is part of TNERC's ongoing efforts to address the financial implications of stranded power generation capacity caused by consumers who source electricity through open access rather than from the state utility. Open access allows consumers, particularly large industrial and commercial users, to purchase electricity directly from power exchanges or third-party suppliers, bypassing the state distribution network. While this provides cost benefits to the consumers, it leaves TANGEDCO with surplus contracted capacity, leading to fixed costs that still need to be covered. 

TANGEDCO had originally sought a higher surcharge of ?0.34 per unit, arguing that the current power purchase commitments are stranded, and the fixed costs associated with these agreements remain a financial burden. However, after considering the evidence and representations from various stakeholders, TNERC decided on a lower surcharge to balance the interests of the state utility and the open access consumers. 

The additional surcharge is intended to ensure that the fixed costs of the distribution network are fairly allocated and do not unfairly burden other consumers. This decision reflects the complex dynamics of power distribution in Tamil Nadu, where the growth of open access and renewable energy sources continues to reshape the energy landscape.

 

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