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Tamil Nadu MSMEs Seek Automated Tariff Adjustment For Lower Power Consumption

Updated: Jan 17, 2024 02:47:35pm
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Tamil Nadu MSMEs Seek Automated Tariff Adjustment For Lower Power Consumption

Coimbatore, Jan 17 (KNN) The Micro, Small, and Medium Enterprises (MSMEs) in Tamil Nadu are urging the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to rectify its software, ensuring that all units consuming less than 12 KW power fall under tariff slab LT III A (1).

J. James, the coordinator of the Tamil Nadu Industrial Electricity Consumers Association, highlighted that MSMEs were originally intended to pay tariffs under the III A(1) slab. However, Tangedco was imposing charges based on the III B slab, reported the Hindu.

In response to protests by the Federation of Coimbatore Industrial Associations, the Tamil Nadu Electricity Regulatory Commission clarified on September 29, last year, that MSMEs with a connected load of less than 12 KW should be charged under the III A(1) slab.

Consequently, MSMEs were required to submit applications to Tangedco for a change in the tariff slab.

“After an MSME unit submits application online with supporting documents, the Tangedco officials visit the unit, verify if the electricity connected and consumed is less than 12 KW and effect the change in tariff slab,” James said.

This process proved to be time-consuming, and many micro and cottage units were unaware of the online application requirement.

In recent weeks, only about a dozen units in Coimbatore successfully had their tariff slab changed.

It was proposed that instead of relying on MSMEs to submit online applications, Tangedco should modify its software to automatically adjust the tariff slab for all MSMEs with a connected load of less than 12 KW and minimal power consumption to III A (1).

James further noted that MSMEs had staged eight significant protests since September, demanding the elimination of solar networking and peak-hour charges, as well as a downward revision of fixed charges.

While the primary concern revolves around high fixed charges, the government has yet to acknowledge this demand.

Industry association representatives plan to convene after January 20 to discuss the next steps in addressing these issues.

(KNN Bureau)

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