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BEFORE THE HONOURABLE TAMIL NADU ELECTRICITY REGULATORY
COMMISSION
Filing No. ____________
Case No. ____________
1. IN THE MATTER OF: Application for revision of tariff and approval of ARR
for the year 2010-11 to 2012-13 as per Regulations 5
& 6 of TNERC (Terms and Conditions for
Determination of Tariff) Regulations 2005 with other
guidelines and directions issued by the Tamil Nadu
Electricity Regulatory Commission [“Hon.
Commission”] from time to time AND under Part VII
(Section 61 to Section 64) of the Electricity Act, 2003
read with the relevant Guidelines.
Tamil Nadu Electricity Board,
No.144, Anna Salai,
Chennai - 600 002. .... Petitioner
- NIL - .... Respondent
The petitioner named above respectfully showeth under:
1. Tamil Nadu Electricity Board, hereinafter referred to as the "Board " (or TNEB) is a
State Electricity Board constituted under Section 5 of the Electricity (Supply) Act,
1948 and is in the business of Generation, Transmission and Distribution of
electricity in the State of Tamil Nadu.
2. This application for approval of Aggregate Revenue Requirement (ARR) for the year
2010-11 to 2012-13 under Multi year Tariff and approval of measures proposed to
bridge the gap between ARR and the Expected Revenue from Charges, is being filed
before the Honourable Tamil Nadu Electricity Regulatory Commission, hereinafter
referred to as Hon. Commission (or TNERC or Commission), in accordance with the
provisions of the Electricity Act, 2003. As per Proviso of Section 61 (Part – VII) of
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the Electricity Act, 2003, this application has been prepared in accordance with the
relevant provisions of TNERC (Terms and Conditions for Determination of Tariff)
Regulations 2005.
3. The Board requests that the tariffs be made effective from 1-4-2010.
Need for tariff revision
4. Since the last revision at the year 2003-04, the Board has witnessed substantial
increase in its operational costs on account of increase in its cost of inputs, production
cost, wages-salaries of employees as well as the inflationary conditions, while the
tariffs continues to remain the same.
5. The existing tariff based on the latest estimate of energy sold for the year 2010-11,
2011-12 and 2012-13 would recover only Rs.17463.00 Crores, Rs.18782.11 Crores
and Rs.20477.99 Crores respectively. Apart from this, an amount of Rs.1034.32
Crores, Rs.1177.55 Crores and Rs.1350.70 Crores are expected as miscellaneous
receipt together with other income and Rs. 1868.77 Crores, Rs 1945.94 Crores and
Rs 2031.53 Crores, respectively as tariff subsidy against the total annual revenue
requirement of Rs.29783.89 Crores, Rs.30514.16 Crores and Rs.33478.22 Crores for
2010-11, 2011-12 & 2012-13 (including Return on assets). The gap of Rs.9417.80
Crores. Rs.8608.56 Crores & Rs.9618.01 Crores for the year 2010-11, 2011-12 &
2012-13. Thus is proposed to be partially covered through the revision in the tariffs.
6. The increase in the expenditure has arisen on account of the increase in the fuel cost,
cost of other inputs, and, overall cost of production, increase in wages & salaries of
employees as submitted before. Increased power purchase is anticipated due to
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increasing demand, exciting gaps in demand & supply etc. thus leading to heavy
dependence on purchase of costly power.
7. The Board has drawn up a detailed investment and capital expenditure programs to
augment the generation capacities and also to strengthen the transmission &
distribution systems with the aim to provide efficient service to the consumers. The
Board envisages capital expenditure to the tune of Rs. 6456 Crores during the
financial year 2010-11. This is aimed primarily at capacity additions as also at
improving the quality of supply and improving the grid. Any project expansion and
improvement of Transmission & Distribution (T&D) Network has to be borne out of
internal generation of resources. However, in the absence of revenue surplus, this
amount can be raised only from the debt market. This has resulted in increase in the
interest and finance charges on the borrowing to fund these expenditures. The Board
is also undertaking refurbishment of its old generating stations, which would lead to
extension of life and improvement of the Plant Load Factor (PLF). All these efforts
would ultimately result in enhanced availability of power at lower cost to the
consumer. As submitted earlier the Board has drawn up definite plans & programmes
to add additional generation capacities. During the year 2010-11, a capacity of 20
MW in Bhavani Barrage –I & II, 13 MW in Periyar vaigai I to IV, and another
additional capacity of 60 MW in Bhavani Kattalai Barrages – II & III and a capacity
600 MW in North Chennai TPS stage-2(Unit-1) totaling 690 MW is expected to be
added. During the year 2011-12, a capacity of 600 MW in North Chennai TPS stage -
2 (Unit-2), and 600 MW in Mettur TPS Stage-3 totaling 1200 MW will be added. In
addition to this the Board has also undertaken works to establish 3 x 500 MW Joint
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venture project with NTPC at Vallur Chennai. In view of the envisaged additional
capacity of generation, it is necessary that the Board has to have necessary resources.
8. Till date Board is undertaking various initiatives aimed at systematic improvements.
In this regard, the Board has proposed 110 schemes for implementation of the
Restructured Accelerated Power Development and Reform Program (RAPDRP).
TNEB is to implement RAPDRP to improve consumer satisfaction by establishing
quality, reliable and stable power supply. This can be achieved by establishing IT
based measuring system and strengthening of distribution networks aiming at
accounting the entire unaccounted for power and reduction in T&D losses.
9. The Board, based on the sample studies and metered data available has assessed its
line losses at about 18%. and the same has to be brought down further.
10. The Board is conscious of its responsibilities to provide to the consumers reliable and
quality power at competitive rates. The Board has been taking contented efforts to
correct some of the imbalances in the tariff structure. The tariffs of the TNEB have
been influenced by several socio-economic factors. Hence, in the tariff revision
proposal, LT consumers under I-B (hut), II-A(Street light & water works), II-C
(places of worship), IIIA(2) (Power loom weavers) and V(Agricultural consumers)
and the LT consumers who are consuming less are not proposed to be disturbed.
11. At present private educational institutions, cinema theatres are charged under LT
Tariff IIB. Now, new tariff rate for these consumers under LT Tariff IIB higher than
other consumers of this category has been proposed in this petition. Others are also
proposed with very marginal increases only.
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In case of HT consumers, the tariff under HT-IIB (places of worship, mutt etc)
HT-IV (Lift Irrigation) and HT-V (Pondicherry) are not proposed to be increased. Hence
again others are proposed only with very marginal increases.
12.The Board is required to invest money for improvement of infrastructure network on
transformers, cables, lines etc. in order to transmit more power for meeting the increasing
demand from consumers. The Board also has to replace the worn out assets, which have
become unserviceable due to wear and tear on account of serving for a long period of
time. The Board also has to invest money to introduce latest technology in operation and
maintenance of generating stations, in maintenance of sub-stations, computerisation of
data, billing, accounting etc. Hence the Board has to generate adequate internal resources
to meet the above capital expenditure as the Board’s borrowing capacity has been eroded
due to consistent losses incurred. Thus the appropriate tariff increase would go a long
way in enabling the Board to carry out its mandated responsibilities to provide quality
service to its consumers.
13. Also due to increase in the investment in capital expenditure programme on
Distribution, Transmission, Generation etc. the financial assistance presently being
provided by the State Government is clearly not sufficient. Consequently, the Board has
to borrow from the market at high costs. Hence the Board would like to submit that the
proposed tariff revision is necessary to ensure its financial viability.
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Revenue – Expenditure Gap
14.The estimated expenditure - recovery gap for FY 2010-11,2011-12 & 2012-13 as
detailed below, considering the existing tariff is assessed at Rs 9417.80 Crores, Rs.
8608.56 Crores and Rs. 9618.01 Crores respectively:-
Particulars
Financial Year
2010-11
(Rs. Cr)
Financial Year
2011-12
(Rs. Cr)
Financial Year
2012-13
(Rs. Cr)
Total operating expenses (incl.
Return on fixed assets)
29783.89 30514.16 33478.22
Less :
Miscellaneous Receipt 1034.32 1177.55 1350.70
Tariff and other subsidies
received from GOTN
1868.77 1945.94 2031.53
Net Revenue Requirement 26880.8 27390.67 30095.99
Revenue expected to be billed
from the Existing tariffs of TNEB
17463.00 18782.11 20477.99
Deficit without tariff revision 9417.80
8608.56 9618.01
The Board has provided the detailed analysis of income & expenditures from the last
audited financial year to the year 2012-13. The analysis for FY 2007-08 is based on the
audited figures recorded in the books of accounts of the Board. The analysis for FY 2008-
09 is based on the preliminary estimates for the financial year.
The Board has proposed to treat the estimated accumulated shortfall as on 31st March
2010 to be treated as “Regulatory Assets”. The Board may be allowed to recover this un-
recovered shortfall from the consumers in future years in a phased manner. This will
enable the board in recovering the “already incurred legitimate cost” without imposing a
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tariff shock on its consumers, as the recovery will be spread over multiple financial years.
The detailed calculation is provided as a part of this petition.
15.The following Sections in the Tariff application detail the various component of tariff
determination exercise for the ensuing year FY 2010-11 to 2012-13
Section 1 Overview of Board
Section 2 Action taken by Board on Commission’s directives
Section 3 Performance analysis
Section 4 Sale of Power for various consumer categories
Section 5 Projection of generation quantum and fuel cost
Section 6 Projection of Power Purchase quantum and cost
Section 7 The Energy balance and the measures being proposed by the
Board for system improvement.
Section 8 Determination of annual revenue requirement
Section 9 Tariff subsidy
Section 10 Total revenue requirement and need for tariff increase
Section 11 Proposed tariff revision for various consumer categories
Annexure 1 ARR - Formats prescribed by the Hon’ble Commission
Prayer
16. The Board requests the Hon’ble Commission that
� The accompanying ARR /Expected Revenue from Charges for the financial
year 2010-11 to 2012-13 be approved.
� The accompanying proposal to bridge the revenue gap be accepted and
accordingly an order is issued by the Hon. Commission as deemed fit;
� The un-recovered revenue gap as on 31st March 2010 be treated as Regulatory
Asset and carried over to be recovered through future tariffs;
� The Board has made every effort to provide detailed information for
computation of the revenue requirement and expected revenue. The Board is
attempting to improve its management information system, which would
enable it to provide improved data/information in the subsequent filings as
may be required by the Hon’ble Commission.
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1 Overview of TNEB
1.1 Background
The Tamil Nadu Electricity Board (TNEB) is a statutory body formed on 01.07.1957
under the Electricity Supply Act, 1948 (ESA) as a successor to the erstwhile Electricity
Department of the Government of Madras. The Board is responsible for development of
infrastructure and service relating to the State’s growing need for electrical energy.
Starting with a modest installed capacity of 156 MW (Mega Watt) at the dawn of
independence, the Board’s own generating capacity has grown by leaps and bounds to
10,214 MW as on 31.03.2009. The Board has an even mix of the various generating
capacities such as 2970 MW of coal based four thermal stations, 516 MW from the five
Gas Turbine Stations and 2186 MW from 38 Hydro Stations. In addition, there is an
infirm power of 17 MW from Wind Farms. Besides, the Board has a share of 2825 MW
from Central Generating Stations, 4270 MW of privately owned wind farms and 1180
MW of Independent Power projects. The peak reached is 9910 MW on 29.06.09 and the
maximum daily consumption was 216.38 MU on 29.06.09.
In fulfilling its obligations over the last five decades, the Board has also been an effective
tool for the Government in implementing its policies and fulfilling social obligations
relating to agriculture and other weaker sections of the society that require positive
support and special attention of the Government. This approach was however not unique
to Tamil Nadu alone but has been adopted in some states, with reduced tariff to certain
consumer segments.
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1.2 Operational performance of the Board
The State does not have its own coal resource and has to source its requirements partly
from the Eastern Coal Fields Ltd. (ECL and Mahanadhi Coal Fields Ltd. (MCL) mines
situated in West Bengal and Orissa respectively & partly by import. The coal
transportation is being undertaken through rail-cum-sea-cum rail route resulting in high
expenditure.
The Board has also attempted to develop other sources of power generation. The
commercially exploitate hydel potential, has been tapped almost to the full extent. The
hydel generation is dependent on the precipitation levels during the monsoon season and
the entire season in the state itself being short the hydel capacity is mainly employed as a
peaking capacity. The Board, over the past few years, has been adding gas-based stations
exploiting the limited gas potential available in the State.
The State has a friendly policy for encouraging non-conventional sources of power such
as the wind, co-generation etc. Tamil Nadu has the largest wind power capacity of about
4287 MW. However, besides being infirm in nature, this power is available only during
June to September. Apart from this, the State has seven independent Power Producers
(IPP) plants in operation in the State. The Board is making continuous efforts to add
generation capacity, in spite of constraints on its financial resources. During the year
2009-10, 4 MW in Amaravathy Mini hydro Project and 95 MW Valuthur Gas project
(Additional) totaling 99 MW have been added. The Board plans to add 30 MW each in
Bhavani Kattalai Barrage Project II & III, 10 MW each in Bhavani Barrage I & II and 13
MW in Periyar Vaigai-I to IV and a capacity 600 MW in coal fired North Chennai TPS
stage -2(Unit-1) totaling 690 MW during 2010-11. During 2011-12, a capacity of 600
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MW in NCTPS (stage (2)(Unit 2) and 600 MW MTPS stage 3 totaling 1200MW will be
added besides the addition of one unit of 500 MW Vallur TPS in joint venture with
NTPC. The energy requirement of the State has been growing at a rate of 8 - 10% every
year. The increasing demand is sought to be met by power purchase from central
generating stations of such as NTPS, NLC, Atomic Power Plant of Koodankulam and
joint venture project at Valloor, Tuticorin and Udangudi to be implemented along with
NTPC, NLC and BHEL. The strategy of TNEB is to conserve and maximise the precious
internal resources for the much needed investment in transmission & distribution sector
by leveraging the investments capacity of central utilities like NTPC, NLC and NPCIL as
well as private sector in generation to its fullest possible extent.
The Board owns and operates an extensive network of transmission and distribution
consisting of 1.64 lakhs Ckt.kms of EHT & HT lines and 5.26 lakhs Ckt kms of LT lines
as on March-09. It also owns and operates majority of the generation assets in the state
and is buyer of power from the Government of India owned (Central) generating stations
and private producers in the state. It also owns 1259 substations and 1,86,638 distribution
transformers besides other assets. The Board is also making continuous efforts towards
strengthening the transmission & distribution networks to reduce the technical losses in
the system. To achieve low technical losses, nearly 90 sub-stations and 4750 KM of
EHT/HT lines and 12000 distribution transformers are being targeted every year. As a
part of the RAPDRP programme, schemes to strengthen the existing T&D systems have
also been undertaken with the support of Government of India, this is the first time TNEB
is attempting to address the entire segment of T&D issues holistically. .
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The State has a low incidence of losses in the LT system. The incidence of theft and
tampering of the meters is also low. For HT consumers, the introduction of tamperproof
meters at the consumer’s premises along with a check meter facility has reduced the
incidence of meter tampering. 100% metering up to 11 kV feeders has been completed.
The Board has an effective vigilance wing which conducts surprise checks on the
consumer premises to detect any tampering & other malpractices. During 2008-09, about
8846 theft cases detected were notified. The Board has assessed its overall T&D loss
levels for the FY 2010-11 to 2012-13 to be around 18%. In TNEB, 78% of the total
electricity sold is on a metered basis. The loss levels have been computed taking into
account the assessed consumption from the agricultural and hut consumers, which is
nearly 22% of the total consumption in the State.
The Board is also committed to render the highest standards of service to its consumers
based on standards as set out by the Hon. Commission in the "Standards of Performance
Regulations" for the various services to be provided to the consumers. The Board has
been maintaining an impressive record for redressal of consumer complaints, correction
of faults, providing service connections, faulty meter replacement, complaints of Billing,
Meter reading, payment etc. Hence the Board is making its best efforts to provide
efficient, reliable and prompt service to its consumers. A computer based power failure
redressal centre has been set up in Chennai, Madurai, Coimbatore, Trichy, Vellore,
Erode, Salem, Tirunelveli, Nagarcoil and Tirupur. The consumers who were earlier
facing difficulty in contacting "fuse off call centres", can now directly contact the call
centres using a computer based system, which will have multiple lines, queuing facility,
automatic call distribution system with multiple operators. Consumers can now log on
their complaints all through the day. The centre is managed by trained call centre
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personnel who register the complaint, a complaint number is given to the consumer and
complaint is forwarded to respective "fuse off call centre". All the complaints are closely
monitored till the complaints are finally rectified.
1.3 Need for revision in tariffs
As submitted in earlier paragraphs, the Board needs to undertake capital expenditure to
provide better services to the consumers. The current year capital expenditure and
investments programs relate to addition of generation capacity and extensive renovation
and modernisation program. The planned capital expenditure for the financial year 2010-
11 will be in the range of Rs.6500 Crores. These include augmentation of the thermal
and hydro capacities, strengthening of transmission & distribution system and rural
electrification programs. The programmes are intended to strengthen the existing
generation, transmission and distribution system to enable the Board to meet the growing
requirements of the consumers at acceptable performance standards of supply. However,
these funds have to be greatly dependent on the internal generation of surpluses by the
Board.
The Overall average Cost of power at the consumer end for the year 2009-10 is estimated
to be Rs.4.69 per unit. As against this, the overall rates of realisation from sale of power
will be Rs. 3.33 per unit . Therefore for each unit sold, Board will be incurring a loss of
Rs.1.36 during FY 2009-10.
Due to socio economic considerations, Board has been making operating losses with non-
remunerative tariffs to recover the revenue expenditures. Hence it is difficult to generate
internal resources for capital investments. The external borrowings are expensive sources
of funds and are further adding to the interest burden of the Board. It is also not feasible
to raise external funds to the required extent so as to meet the entire capital expenditure
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requirements. The expenditure on account of interest, on account of the external
borrowings to fund all the development initiatives and also to meet the revenue deficits
created on account of procurement of costly power due to rapid growth in consumption
are likely to further add to the Board's financial liabilities.
TNEB is a performing utility in terms of its generation performance, the transmission and
distribution services provided to consumers, low level of T&D losses, metering & billing
performances, providing prompt services to its consumers and to their grievance
redressals. The Board has consistently been taking initiatives towards theft reduction
through its internal enforcement mechanism and continuous systematic improvements.
However its growing subsidised consumers base such as agriculture, huts, places of
worship, handlooms and power looms and a high percentage of domestic consumers has
impacted its financial performance.
The current tariff proposal is thus a step forward in the direction of correcting the tariff
imbalances affecting the Board and making it at least partially financially viable.
However, till such time the process of tariff reforms is wholly completed, the tariffs of
various categories may not reflect the average cost of supply.
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2 ACTION TAKEN BY TNEB ON COMMISSION’S DIRECTIVES
Various directives issued by The Tamil Nadu Electricity Regulatory Commission and the
actions taken by TNEB are furnished below.
2.1 Metering
Directive
All the services should be metered including huts and agricultural services. TNEB
should complete 100% metering within 3 years as committed.
Action taken
Based on the request of the Board and that of the Government of Tamil Nadu
Hon'ble Tamil Nadu Electricity Regulatory Commission has accorded extension
of time upto 01.10.2012 for installation of meters in hut services and agricultural
service connections.
2.2 Energy Audit
Directive
The Commission directs TNEB to assess the loss in the three voltage systems viz.
EHV, HV & LV systems. Meters should be installed at the output points at each
SS. Monthly energy balance assessment is to be carried out and a copy is to be
submitted to the Commission.
Action
• Static meters have been installed at all the output points at each SS.
• Monthly energy balance assessment is being carried out from 230 KV level to 11
KV bus and a quarterly return is being submitted to Honourable TNERC.
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Directive
In each circle, for a group of 5 to 6 Substations, one PC with internet connection
may be installed and the data relating to the group of Substations may be keyed in
through this PC. Using a web based software, the energy balance may be arrived
at.
Action Taken
As a pilot scheme, Automatic Data Logger System (ADLS) has been
commissioned in six substations of Coimbatore South EDC. Linking of these
ADLS with Centralised Monitoring Station at Coimbatore Circle has also been
done and is under observation. Once the results have been analysed on a
substantial basis further action will be pursued in this regard.
Directive
TNEB is directed to improve the level of metering and conduct more energy audit
at the 11 KV feeder level. The Commission directs the TNEB to undertake energy
audit at the HT/ LT levels and submit a quarterly report to the Commission.
Action Taken
• Static meters have been provided at SS end for all 22/11 kV feeders (99.65%).
• Based on the energy accounting study undertaken in different distribution circles
at the rate of 2 Nos. HT feeders per SS, the No. of HT feeders having high line
loss were identified as 1587. Improvement works have so far been carried out in
751 Nos. feeders. Quarterly reports are being sent to TNERC.
Directive
TNEB should undertake energy audits at Board’s own generating stations and
submit a quarterly report.
Action Taken
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Energy audit is being conducted internally and quarterly returns are being
submitted to the TNERC.
2.3 Theft of power
Directive
TNEB should put in greater efforts to prevent theft of electricity by hooking,
tampering of meters etc., through rigorous vigilance drives and concentrate on
theft prone areas and higher tariff categories.
Action Taken
Enforcement squads have been instructed to carry out inspection of SCs by
prioritizing inspections based on the information and intelligence, by increasing
the frequency of operation in theft prone industries and areas, by inspecting
seasonal industries during the seasons, by inspecting power intensive HT SCs
once in a year and other HT services once in two years, and all LT/CT services
once in three years. Compliance of the instructions is monitored at the Head
Quarters.
Directive
TNEB should also take strict action against the erring employees who are found
conniving with the consumers to deprive TNEB of rightful revenue.
Action Taken
Instructions have been issued in this regard for identifying such employees and
taking appropriate action to effectively prevent revenue loss to the Board and very
strict action is taken against the erring employees. In addition, major trade unions
have also been requested to educate the members concerned in ensuring that not
one single case of connivance on part of TNEB employees in committing energy
theft.
Directive
TNEB should implement a scheme for rewarding the people who inform TNEB
regarding theft of electricity and violations as a percentage of additional revenue
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assessed by TNEB rather than the actual collection.
Action Taken
Board has recently enhanced the cash award not exceeding 10% of the additional
Revenue assessed subject to maximum of Rs.1 lakh to the public informants and
an initial payment of Rs.5000 to the informants once the theft is detected.
The yearwise statement of Theft cases detected & the additional revenue
realized.
Year No. of cases detected. Amount of additional
revenue realized.
Rs. lakhs
2007-08 252 24.99
2008-09 290 30.57
2.4 T&D LOSS Directive
TNEB has stated that it has already installed meters at the substation end on 22
KV and 11 KV feeders. Meters are to be installed at the secondary end of
Distribution Transformers. A representative sample study may be carried out and
based on sample study results, the total loss can be assessed. The Commission
takes on record the action plan of TNEB for FY04 to peg the T&D loss and direct
that this plan should be scrupulously implemented without any omission and
quarterly progress on loss levels and action plan to reduce the losses should be
submitted to the Commission with effect from 1.7.03.
Action Taken
As on 31.03.09 there are 1,86,638 Nos. Distribution Transformers (DTs) totally
available in TNEB and so far 93,101 Distribution transformers have been
metered. The same have already been submitted to TNERC.
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Initially, Steps are being taken to carry out energy accounting in the feeders
(approximately 1000 feeders) where all DTs have been metered.
The transmission and distribution losses in Tamil Nadu have been estimated as
18% for the years 2002-03, 2003-04, 2004-05, 2005-06, 2006-07 and 2007-08.
TNEB is continuously carrying out the following improvement works to reduce
the losses to the maximum extent possible:
1) Reduction of HT:LT ratio by erecting more High Tension lines and
erecting new distribution transformers
2) Establishment of new sub-stations
3) Strengthening of HT line conductors
4) Installation of HT shunt capacitors at substation end
5) Installation of LT fixed capacitors at LT side of Distributon Transformers
6) Erection of link lines
7) Re-routing of feeders
A quarterly progress on loss levels is being furnished to TNERC.
Directive
Completion of consultancy study on assessment of energy in Unmetered Agricultural &
Hut service towards assessment of LT Line. The results of the consultancy works under
World Bank project should be submitted to the Commission and followed up.
Action Taken
• The recommendation of the study is for assessing the consumption pattern in
agricultural and hut services by providing meters in 6600 Nos. agricultural
services and 4620 Nos. hut services selected randomly. Based on the readings
taken from those services, the consumption of unmetered agricultural and hut
services are to be computed for energy auditing and line loss studies. The
19
installation of meters has been completed. Meter reading were taken from
01.12.2006 to 31.11.2007.
• While executing the analysis of the data for estimation of energy
consumption ‘run time error’ occurred in the software developed by Dr. S.K.
Raheja.
• The reason for occurrence of such errors has been requested from
Dr. S.K. Raheja, New Delhi and the same is awaited.
• For increasing the energy efficiency of the pump sets used for pumping water
for agricultural purposes a study was conducted by engaging a consultant
under World Bank aid. The consultant M/s. Global Energy Consultancy
Services recommended improvement proposals for 4 Nos. feeders and 500
Nos. agricultural pump sets.
• Improvement works for all the four feeders have been completed.
• Out of 167 pump sets taken up for improvement, Agriculture Department,
Government of Tamil Nadu has completed the improvement works in 108
Nos. This is being carried forward/
• Directive
TNEB should streamline the operations of T&D Wing and obtain ISO 9001 certification for
at least one circle in each Region.
Action Taken
Initially, it was proposed to apply for ISO 9001-2000 certification for Trichy Metro EDC.
Trichy EDC/Metro originally had four divisions. From July 2007, three more divisions
have been annexed. Hence it was proposed to impart training for Internal Auditors of the
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annexed divisions in order to have effective implementation of ISO certification and also
it is proposed to invite fresh tender for finalisation of certification agency.
At present Tamil Nadu Electricity Board is in the process of restructuring and works of
activities distribution circles will be limited to below 66 KV sub-stations only. In these
circumstances obtaining ISO certification to Distribution circles on pilot basis will be
initiated after the formation of TANGEDCO
2.5 Sale of Power To Pondicherry
Directive
The State of Pondicherry cannot be considered as a HT consumer of the TNEB for
the fixation of tariffs, and the transaction must be considered as an inter-state sale
of energy. The rate of energy must be negotiated with Govt. of Pondicherry and
tariff rates to be fixed.
Action Taken
The state of Pondicherry has filed a case before the Honourable High Court and the same
is pending.
2.6 Quality of Supply:
Directive
TNEB shall initiate discussion with TNERC to evolve a format to reveal quality of supply
and submit quarterly report.
Action Taken
Formats have been evolved for assessing quality of supply considering reliability
index, fault index, frequency profile and voltage profile. Quality of supply is
being assessed for Chennai metropolitan area and Coimbatore, Madurai, Salem,
Trichy and Thirunelveli Municipal Corporations and quarterly reports are being
submitted to TNERC starting from July - Sept. 2003.
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Directive
To evolve a strategy for positive change in attitude of Board employees and
submit a proposal within 3 months;
Action Taken
Programmes for attitude change and for equipping the personnel with updated
knowledge are being conducted regularly. TNEB has come out with a declared
training policy in line with the National Training policy communicated by the
CEA. The Training policy has been documented and made open from 13.5.2003.
Each employee will undergo 3 to 5 days Training each year under Enmass
Knowledge Updating Programme, wherein Training on attitudinal change is the
foremost objective.
In all short term and long term programmes, Yoga, Kayakalpam and simple
exercises have been made compulsory. This has been found to be very effective
to bring positive attitude among the employees.
A total of over 70,000 employees have been benefited under this Enmass
Knowledge Updating Programme and other regular programmes upto 2007-08
Regarding training programme on “ Positive Attitudinal Changes for Distribution
AEs” trainings were imparted for 300 AEs in 2008-09, also National level
training programme for class C & D employees (in Tamil Nadu Electricity
Board class III & IV employees) funded by Central Institute of Rural
Electrification is proposed to be imparted training at 12 Institutions / Centres
for a minimum of 3600 employees from April 2009 to March 2010 (for which
MOU has been signed between Tamil Nadu Electricity Board and CIRE/REC
on 2.4.2009.)
22
Details of employees benefited under regular training programme for the
past five years are as below.
Year No. of employees trained
2004-05 16,127
2005-06 16,922
2006-07 18,774
2007-08 19,088
2008-09 16,081
Directive
TNEB should submit an action plan to release overloaded Distribution
Transformers and achieve the failure rate benchmark of 6%.
• Action plan to release overloaded DTs was submitted to Tamil Nadu
Electricity Regulatory Commission.
• As on March 2006, the number of overloaded distribution transformers
existing were 156 Nos. in urban areas and 3863 Nos. in rural areas.
• Of this, overloading has been released in 144 Nos. transformers in urban areas
by erection of new DTs, bifurcation of loads and carrying out of other
improvement works and only 12 Nos. overloaded transformers are remaining
in urban areas as on 31.1.2009.
• Similarly, overloading has been released in 2368 transformers and 1495
overloaded transformers are remaining in rural areas as on 31.1.2009.
• Overloading in the remaining transformers will be eliminated in a phased
manner.
23
• Meanwhile, the checking of earthing and providing of new earthing for DTs
where the existing earthing is not in order, providing of phase separators, re-
stringing of LT lines, and replacement of defective lightning arrestors is being
done to reduce the failure rate of distribution transformers.
• In addition 10328 Nos. Distribution Transformers are being provided under
Rajiv Gandhi Gramin Vidyutikaran Yogana (RGGVY) which will further
release over loaded transformers particularly in rural areas. These works are
likely to be completed by 31.3.2010.
Directive
To submit data on ToD consumption along with subsequent tariff application
Action Taken
For HT consumers TOD consumption detail has been furnished in the Aggregate
Revenue Requirement format
2.7 Performance Benchmarking
Directive
Bring all the Thermal Stations under ISO 9001 within one year.
Action
Action Taken:
The Bureau of Indian Standards has issued the ISO 9001-2000 License for the
Quality Management Systems to all the 4 namely Tuticorin, Mettur , North Chennai
and Ennore Thermal Power Stations.
Directive
TNEB should adopt an integrated approach of cost per useful heat value (UHV) in
the procurement and usage of coal in various thermal stations
24
Action Taken
Ministry of Environment and Forests ( MoEF ) have stipulated that with effect from
1.6.2002 thermal stations situated beyond 1000 KM from the pit head should use coal
having ash content less than 34% on an annual average basis. The four thermal
stations of TNEB fall well within under MoEF stipulation. Central Electricity
Authority have prepared a coal matrix for all the power stations of TNEB so that the
blend of higher grade Eastern Coal Fields Ltd. (ECL) coal and lower grade Mahanadi
Coal Fields Ltd. (MCL) coal together will have the composite ash percentage less
than 34%. In the past four years, the power utilities are instructed by Ministry of
Power to import coal to meet the gap between the supply and demand of coal
anticipated by Ministry of Coal and accordingly the gap is widening from 10 Million
Ton during the year 2005-06 to 29 Million Ton during the year 2009-10 and it is
likely to go up by 300 Million Ton at the end of the 11th
plan. Further, TNEB has
entered into Fuel Supply Agreement with MCL & ECL for a quantity of 11.875
Million Ton Per Annum and 1.425 Million Ton Per Annum respectively. Ministry of
Coal has fixed a quantity of 1.8 Million Ton Per Annum (the balance requirement) to
be imported for the Thermal Power Stations of TNEB. Under this situation, therefore,
Tamil Nadu Electricity Board has adopted an integrated approach in sharing the
imported coal to various thermal power stations besides the apportionment of
indigenous coal considering economics, operational difficulties and logistics
involved.
Directive
TNEB should evolve a consolidated and comprehensive performance assessment
format for Generation and Distribution circles and submit the assessment for
25
quarterly review which will commence from 1.7.03
Action Taken
Comprehensive performance assessment formats for thermal station, gas turbine
station and distribution circles have been evolved and quarterly returns are being
submitted to TNERC.
Directive
TNEB should explore the use of imported coal for power generation purposes in
order to optimize the cost of thermal generation
Action Taken
Imported coal is being used in Mettur Thermal Power Station (MTPS), North
Chennai Thermal Power Station (NCTPS) from March 2005 and in Tuticorin
Thermal Power Station (TTPS) from February 2006. Since March 2005 so far TNEB
has received about 77.30 Lakh tonnes of imported coal by placing purchase orders on
public sector undertakings namely, M/s MMTC, New Delhi, M/s State trading
Corporation Ltd, New Delhi and M/s TNPL, Chennai. Recently, a purchase order
no:67/25.11.09 has been issued to M/s MMTC, New Delhi for supply of 6.00 LT of
imported coal. The supply has commenced during December 2009. The performance
is found to be satisfactory based on the feedback obtained from the above Thermal
Power Stations.
Directive
TNEB should explore the feasibility of using washed coal in the thermal plants to
reduce the ash content.
Action
The very low ash content in the imported coal helps to maintain the annual average
ash content below 34% in the Power Stations of Tamil Nadu Electricity Board.
26
PERIOD
TUTICORIN
TPS
ENNORE
TPS
METTUR
TPS
NORTH
CHENNAI
TPS
June’04 – May ‘05 29.97 34.20 33.22 32.98
June’05 – May ‘06 30.80 29.23 31.68 30.08
June’06 – May ‘07 31.30 33.54 32.69 31.55
June’07 – May ‘08 29.90 35.09 30.08 30.54
June’08 – May ‘09 27.38 34.27 30.61 32.20
Further Karnataka Power Corporation Ltd ( KPCL) have informed that they would go
for washing of Mahanadi Coal Fields Ltd (MCL) coal by establishing their own
washery near the coalfields in collaboration with MCL and KPCL have also been
processing tender for washed coal. The performance of washed coal by KPCL will be
ascertained before taking a decision on washed coal.
Directive
To strive for further improvement in the efficiency parameters of Generating Stations.
Ensure no slippage in performances;
Action Taken
The PLF for the year ending 2008-09, is higher than that approved by TNERC in
respect of TTPS, MTPS and NCTPS and is lesser in respect of ETPS as shown below.
PLF TTPS MTPS NCTPS ETPS
Average target for the year 2008-09 80.00 80.00 80.00 50.00
Average actuals for the year 2008-09 85.35 87.78 86.52 49.17
27
The main reasons for reduced PLF of ETPS are as follows:
Ennore T.P.S.
1. Unit II was under forced outage for a period of 166 days from 04.06.09 to 16.11.09
due to Condenser tube renewal & AOH works.
2. There were forced outages and partial load operation due to the following:
a. Chloride ingress in Units I, II & III.
b. Curtis pressure in Unit I.
c. ID fan problem in Unit III.
d. Low condenser vacuum in Units I to V.
e. Boiler tube punctures in Units III , IV & V.
f. Turbine vibration in Units I to V, etc.
Directive
To draft a Materials Management Manual for Generation/ Transmission/ Distribution
wings:
Action Taken
Materials Management Manual is available.
2.8 Manpower
Directive
Reduce the number of employees per MU to levels lower than the national average of
2.53 employees per MU of sale
Action Taken
The number of employees per million units of sale for the year 2007-08, 2008-09 and
2009-10 work out to 1.38,1.40 and 1.35, which are lower than the norms, indicated in
the Tariff Order.
28
Directive
Man Power Audit to be conducted in all areas of operation to rationalize and
redeploy man power such that the quality of supply and service is improved.
Action Taken
The implementation of Man Power Audit in respect of Class I and II in Thermal
Stations has already been done . This has resulted in reduction of one post in Class I
service and 165 posts in Class II in all the four Thermal Stations.
2.9 Power Procurement
Directive
TNEB should explore all the possible options with concerned IPP generators to
optimize the cost of power purchase from IPP sources.
Action Taken
As per TNERC’s order, TNEB has advised all the independent Power producers to
swap/restructure the high cost rupee term loans to low cost rupee term loan and also instruct
them to hedge all the foreign currency loans to Indian Currency loan.
All the IPPs also have restructured their high cost rupee term loan to low cost loan.
2.10 Management Information System
Directive
The slabwise consumption should be furnished even by outsourcing this work if
necessary. TNEB should maintain consumption and revenue data strictly as per the
slabwise tariff categories, to enable more accurate estimation of the revenues.
29
Action
The slabwise consumption and revenue details in respect of Domestic, Places of worship,
Power loom, Hand loom, Local body consumers are being submitted to commission
periodically.
Demand Side Management
Directive
Feasibilities of enforcing the DSM measures in all HT industrial and commercial
services
Action Taken
• Mandatory energy audit programmes for HT industrial and commercial
establishments were taken up in phased manner
• However mandatory energy audit programmes were not legally enforceable after
the enactment of Electricity Act 2003.
• After enactment of the Energy Conservation Act 2001, the Bureau of Energy
Efficiency (BEE), Ministry of Power, GOI was formed to implement the
provisions of the Act and the Tamilnadu Electrical Inspectorate has been
appointed as the State Designated Agency by the Govt. of Tamil Nadu for
implementing the provisions of the Act in the State of Tamil Nadu vide G.O. Ms.
No.37 dt.10.05.2005. As per the Act, the energy intensive industries / Designated
Consumers have to take up energy audit only by engaging energy auditors
accredited by the BEE.
• Hence, Board in its 912th
meeting held on 30.04.2008 has approved the proposal
of dispensing with the practice of registering energy auditors with TNEB.
• Directive
Create awareness on the DSM Measures and propagate the use of energy efficient
devices.
30
Action Taken
In house energy audit team have been formed at headquarters and circle levels.
Directive
To submit a report within 3 months with an action plan to create awareness of DSM
measures through Road shows, Posters, meetings etc., - To submit a report within 3
months on the feasibilities of enforcing the DSM measures for all HT Industrial and
Commercial consumers. To propagate the use of energy efficient devices such as CFL.
Action Taken
Awareness creation on DSM measures is already taken up by issuing pamphlets,
celebrating energy conservation day, conducting awareness meeting with
organizations like Confederation of Indian Industry etc. Further, energy conservation
measures and details of energy efficient devices are displayed in each of the
distribution section offices and propagated through slogans printed on the back of the
consumer meter card.
The Bureau of Energy Efficiency has launched the Bachat Lamp Yojana scheme
which is aimed at providing Compact Fluorescent Lamps at a minimal cost of Rs.15/-
in exchange for incandescent bulbs in domestic sector. TNEB is also in the process of
implementing the above scheme in the State of Tamil Nadu by engaging a CFL trader
/ manufacturer.
2.11 . Billing and Collection
Directive To consider innovative methods such as spot billing, opening of more collection
centres authorising more agencies such as banks and Post office etc. to collect
payments to reduce the billing and collection cycle and to arrange holiday collection
centres in urban areas.
31
Action Taken
• Holiday Collection Centres
The collection through banks (on – line), Any Time Payment (Kiosk) machine have
been introduced in Chennai Metropolitan area. The collection through post offices is
worked out and is likely to be materialised shortly.
Directive
The collection efficiency level should be improved to more than 95% taking into
account the arrears also to achieve 100% in three years. To approach the
Government to realize the arrears from local bodies and other Government
Departments.
Action Taken
The status of collection of arrears for the year 2004- 05 to 2008-09 is submitted as
follows.
Year Opening
Balance
Rs. in Crs
Additions
during the year
Rs in Crs
Collection
during the year
Rs in Crs
Closing balance
Rs in Crs.
2004-05 247.06 387.46 520.91 113.61
2005-06 113.61 412.56 262.22 263.95
2006-07 263.95 408.38 415.57 256.76
2007-08 256.76 434.03 548.92 141.87
2008-09
141.87 365.17 356.57 150.47
Local body arrears are being collected by approaching the GOTN.
Directive
32
To submit an action plan to computerise LT billing in all municipal Corporation arrears
Action Taken
All the sections have been computerised under PROJECT BEST except the newly
formed sections.
Directive
Consider introduction of Voluntary Deposit Scheme.
Action Taken
Board orders issued. However the response is reported to be not encouraging
2.12 Reforms and Restructuring
Directive
TNEB is directed to discuss with the GOTN, the feasibility of reforming and restructuring
the TNEB, to introduce competition and improve the operational efficiency. As a first step, the
concept of profit centres/Strategy Business units can be introduced, for better accountability
and a sense of competition. Subsequently the feasibility of unbundling can be assessed.
Action Taken
Necessary instructions have already been issued to the field SEs to treat each distribution
circle as Profit centre. The monthly returns are being received from the Circle offices and
being reviewed at HQ every month. The field officers (CEs) are addressed accordingly to
maximise the profit. However, these concepts are required to be pursued further to their
complete logical end.
33
2.13 Quantification of Efficiency Measures
Directive
Savings should be quantified for the efficiency measures. TNEB should come out with
specific proposals within six months indicating the effective savings for financial year
2004 due to the efficiency measures taken by TNEB.
Action Taken
Certain efficiency measures have been taken by the Chief Engineers/Tuticorin,
Mettur and North Chennai Thermal power stations and the savings achieved in Rs
lakhs are as follows:
Name of Thermal
Stations
2006-07 2007-08 2008-09
T.T.P.S. 116.00 149.802 150.130
M.T.P.S. 124.84 147.796 209.130
N.C.T.P.S 66.16 117.962 176.837
T.T.P.S. : Rs. 150.130 lakhs
M.T.P.S. Rs. 209.130. lakhs
N.C.T.P.S.: Rs. 176 .837 lakhs
Interest Expenditure
Due to reduction in the rates of interest the benefit accrued to the Board will be as follows.
• PFC Ltd., New Delhi
2003-2004: Rs. 6.65 Crores.
34
• Tamil Nadu Power Finance and Infrastructure Development Corporation Limited :
2003-2004 : Rs. 6.19 Crores.
• REC Ltd., New Delhi:
2003-2004 : Rs. 2.74 Crores.
2004-2005 : Rs.10.96 Crores.
• LIC India
2004-2005 : Rs.12.69 Crores.
Similar benefits will be available to the Board every year (up to the payment of last instalment
in proportion to the loan outstanding.
Directive
The savings due to mechanization of coal handling systems, availability of exclusive
birth at Ennore Port, improved facilities at Paradip Port, usage of higher capacity
vessels has to be quantified.
Action Taken
The net savings due to mechanization of coal handling at Paradip Port and Ennore
Port had already been quantified as Rs.106.70 Crs/annum. Depending upon the
market fluctuations in the shipping industry, there will be slight variations every
year in the above savings.
Directive
TNEB to explore the use of imported coal for power generation purposes in order to
optimize the cost of thermal generation. The pros and cons of usage of imported
coal vis-à-vis indigenous coal for power generation may be juxtaposed to explore
whether usage of imported coal would be technically feasible and economically
viable.
35
Action Taken
Based on the recommendations of the technical committee to study the compatibility
of imported coal to TNEB’s thermal Stations, TNEB is importing coal since March
2005 and is being used in MTPS and NCTPS. In TTPS the import coal is being used
from February 2006 onwards. Import coal is used in one dedicated mill in the ratio of
20:8 of import coal and indigenous coal in the NCTPS and MTPS. In TTPS import
coal is being used in one or two dedicated mills in units I,II & III and one dedicated
mill in units IV and V. The performance is found to be satisfactory based on the feed
back got from the above Thermal Power Stations.
2.14 . Handling Consumer Grievances
Directive
Implement a call centre with a toll free 4-digit telephone number to enable consumers to
register their complaints over telephone.
Action Taken
• A call Centre has been commissioned in Chennai on 12.11.2003.
• Consumers of Chennai city can register their power supply failure complaints by
dialing a 6 digit number “155333” from anywhere in the city.
• Consumers can register their complaints at Chennai round the clock on any day.
Professionally trained fifteen call centre personnel will register the fuse off call
complaints and take further necessary action.
• Complaint of the consumer is registered in the computer and complaint number is
given to the consumer.
36
• Address of the consumer is retrieved in the at this centre from the computer
database, based on his contact phone to this centre.
• If this address is different from the address where the complaint is related to the
relevant address will be obtained and entered into the computer.
• TNEB fuse off call center staff will rush to the break down place and take
immediate remedial action to restore power supply to consumer.
• An average of 500 calls per day are received at Chennai and all the complaints are
closely monitored till the complaints are rectified.
• As 30 telephone line connection facility is available, immediate access to call
centre is certain.
• Call Centres were commissioned in Madurai, Coimbatore and Trichy on
1.3.2006,at Erode on 12.10.2006,Salem on 1.11.2006,Tirupur on
21.7.2007,Tirunelveli on 21.1.2008, at Nagercoil on 24.3.2008 and at Vellore on
26.3.2008.
2.15 Resolution of Court Cases
Directive
Take all efforts for speedy resolution of the pending court cases
Action Taken
• Lok Adalat:
No. of Cases presented :994
No. of Cases turned up : 685
37
No. of Cases settled up to 31.3.2009 : 374
Amount Settled : Rs.8,23,19,433/-
Necessary action is being taken for speedy resolution of the court cases.
2.16 Issues of Agriculturists
Directive
Since some of the issues raised by the agriculturists cannot be ignored, the
Commission directs TNEB to forward a copy of the tariff order to the concerned
departments of Government and highlight the relevant issues.
Action
The representations from various agriculturists on issues like food security,
agricultural employment, parity of price, debt burden etc. have been forwarded to The
Secretary, Agriculture Department.
2.17 Electronic Meters
Directive
To install suitable meters for all industrial and commercial services of 25 HP to 75 HP within 3
months and then introduce the incentive / penalty for Power factor.
Action Taken
• Static meters with PF measurement facility have been installed in all the
Industrial and Commercial services with a connected load of 25 HP to 75 HP.
Directive
To install suitable meters in LT services other than industrial and commercial with a
connected load of 25 HP to 75 HP and then introduce the incentive / penalty
Action Taken
• Static meters with PF measurement facility have been installed in all the LT
services other than Industrial and Commercial with a connected load of 25 HP to
75 HP.
38
Directive
To install capacitor for power factor improvement in all LT services using a motive load of 3
HP and above.
Action Taken
4,11,672 services were inspected and capacitors have been provided in all services except
in few OHT services.
Instructions have been issued to CEs/Distribution to convene meeting of officials of local
Bodies in charge of OHT services by the CEs to insist on provision of capacitors.
2.18 Local Body Arrears
Directive
The current consumption charges arrears from the local bodies as on 31.10.2002 was
187.03 Crores. TNEB should approach the Government to realise the arrears from
the local bodies and other Government departments.
Action
The current consumption charges arrears realised from the Government for the local
bodies and other Government departments is as follows
• 2004-05 Rs. 558.24 Crores
• 2005-06 Rs. 299.49 Crores
• 2006-07 Rs. 455.30 Crores
• 2007-08 Rs. 584.08 Crores
• 2008-09 Rs. 495.97 Crores
The accumulated arrears of local bodies as on 31.03.09 is Rs. 150.47 Crores.
Discussion are being made with the Government to realise the arrears from the local
bodies and other Government departments.
39
2.19 Bad Debts
Directive
Where ever the dues are identified as non-recoverable and to be treated as bad debts
such dues may be adjusted against the provisions made therefore.
Action
As per the guidelines given in Para 4.2 of Part 4 of Uniform Commercial Accounting
Rules 1985, provision for bad and doubtful debts are being made every year by
debiting revenue account and creating credit under Account Code No. 79.460 in
Schedule 15. Wherever the dues are identified as non-recoverable and to be treated
as bad debts, such dues are adjusted against the provisions made thereof. Hence, the
Board is having the policy of creating provision for bad and doubtful debts and
adjusting the non-recoverable/bad debts against the provision created for bad and
doubtful debts.
2.20 Study of Harmonics and arc furnaces
Directive
TNEB should conduct a detailed technical study to assess the quantum of harmonics
etc. and propose remedial measures to be enforced in future on the consumer so that
the extra levy can be dropped upon installation of the required filters etc.
Action Taken
Harmonic measurements are undertaken in HT industries and a database has also
been created. Also regular quarterly returns on the measurements taken are being sent
to TNERC.
40
3 Performance of the Board during FY 2009-10 to FY2012-13
The detailed break-up of revenue and expenditure for FY 2009-10 to FY 2012-13 are
given below.
Table 1
Particulars 2009-10
(current year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Income
Rs Crores
Revenue from sale of power 16254.78 17463.00 18782.11 20477.99
Miscellaneous Receipt 912.66 1034.32 1177.55 1350.70
Tariff subsidy by GOTN 1797.17 1868.77 1945.94 2031.53
Total Income (A) 18964.61 20366.09 21905.60 23860.22
Expenses
Power purchase cost 15774.39 16527.84 15141.12 16440.10
Fuel cost 4265.89 4723.40 5998.30 6829.55
Operation and Maintenance charges 3111.82 3463.64 3602.19 3746.28
Depreciation Expenditure 992.49 1086.36 1189.81 1303.86
Interest charges 3058.40 3464.99 4032.05 4571.18
Other Debits & Extra ordinary items 152.01 139.41 138.46 137.46
Prior period expenses/ Debit /(Credit) 0 0 0 0
Reasonable Return /Return on Equity 347.48 378.25 412.23 449.80
Annual Revenue Requirement (B) 27702.48 29783.89 30514.16 33478.23
(Shortage) of income over
expenditure
(8737.87)
(9417.80) (8608.56) (9618.01)
3.1 Treatment of revenue shortfall
Due to various reasons, TNEB was not able to recover all the cost from operations. The
shortfall during FY 2003-04 to 2008- 09 is given below:
41
Table 3 Revenue shortfall – Calculation (Rs Crores)
Particulars 2003-04
2004-05 2005-06 2006-07 2007-08 2008-09
Income
Income from
Business
11508.21 11779.15 13169.64 14774.79 16051.41 15705.83
Revenue
subsidy from
GoTN
250.00 924.50 1179.49 1330.10 1457.02 1831.61
Total Income
(A)
11758.21 12703.65 14349..13 16104.89 17508.43 17537.44
Expenses
Expenditure for
the year (B)
13155.91 13894.98 15316.9 17930.86 21201.84 24995.31
Return on NFA
(C)
0 0 0 0 0 0
Annual
Revenue
Requirement
(D= B+C)
13155.91 13894.98 15316.9 17930.86 21201.84 24995.31
Prior period
adjustments
( E )
(287.57) (14.56) 361.22 (607.03) (181.33) (325.92)
Shortfall to be
treated as
Regulatory
Asset
(A-D+E)
1110.13 1176.77 1328.99 1218.94 3512.08 7131.95
The cumulative Regulatory Assets = 16774.47 Crores
(Including for previous years)
The existing tariff revision procedure does not allow the recovery of shortfalls either
automatically by the Board or through a mid-year tariff revision by the Commission.
Thus the entire revenue loss incurred during the financial year has to be borne by the
Board. Non-recovery of such shortfall will give rise to stranded cost and the Board will
continue to carry it in its Balance Sheet.
Also since the recovery of the entire shortfall in one financial year (say in FY2010 -11)
would put heavy burden on consumers, the Board does not wish to burden the consumers
42
with such a huge increase in tariffs, so as to recover this entire shortfall in one go. The
Board's intention is to minimize the rate shock to consumers and to maintain a smooth
tariff trajectory to recover the costs.
It is thus proposed to treat the above-explained accumulated shortfall as a special class of
assets namely “Regulatory Assets” for the future years. The said asset is of the nature of a
“deferred expenditure” and will be charged as expenditure while formulating the Annual
Revenue Requirement in the future years.
It is proposed to recover this shortfall through equal instalments in future years.
Allowing uncovered Shortfall in revenue requirement to be treated as "regulatory asset"
as per Regulation of 13 of TNERC Terms and conditions for Determination of Tariff
Regulations, 2005 has following advantages:-
� The Board’s consumers are not subjected to a tariff shock as a result of
loading the entire shortfall in revenue requirement during previous years.
The concepts of recovery of shortfall through the mechanism of regulatory assets have
several precedents both international as well as within the country. The next sub-sections
provide a summary of the precedents set by the various utilities and Regulatory
Commissions in accepting the concept of regulatory assets.
3.1.1 PRECEDENTS OF RECOVERY OF PAST SHORTFALL IN LEGITIMATE ARR
Regulatory precedents exist in the country, wherein the regulators, have permitted
recovery of past shortfall in the legitimate ARR of the utility on account of factors
outside their control.
3.1.2 PRECEDENTS OF USAGE OF REGULATORY ASSET
Various regulatory precedents exist in the country, wherein the utility has approached the
Regulatory Commission with a proposal for treatment of shortfalls as Regulatory Assets.
In a number of cases, Regulatory Commissions, based on the merit of the case have either
permitted deferring a portion of the shortfall in revenue requirement as Regulatory Asset
to be recovered in subsequent years or accepted the principal of Regulatory Asset for
future years. The regulators who have accepted the principle of regulatory assets include
Orissa Electricity Regulatory Commission (OERC), Haryana Electricity Regulatory
43
Commission (HERC), Andhra Pradesh Electricity Regulatory Commission (APERC) and
Delhi Electricity Regulatory Commission (DERC).
The first case pertains to the state of Orissa. OERC in its Tariff Order of November 1998
allowed a portion of the revenue requirement to be deferred as a special category of
capital (regulatory asset), while stating the following,
“………………we consider it pragmatic to treat the amount of difference
between the revenue requirement calculated on the basis of Gridco's estimated
T&D loss of 41% and the revenue requirement calculated on the basis of the
reasonable level of 35% as has been determined by us as a special category of
capital. This amount with RBI rate of interest will be considered for inclusion in
the revenue requirement for tariff purposes …………….”
HERC was also faced with the situation of Haryana Vidyut Prasaran Nigam Limited
(HVPNL) not being able to recover its entire shortfall in the revenue requirement in three
months without a rate shock to the consumers. In its Tariff Order dated 22/12/2000,
HERC permitted HVPNL to carry forward the shortfall in the revenue requirement
(calculated by assuming that the existing tariffs apply for nine months and new tariffs
apply for three months) as a Regulatory Asset to be treated as a special item on the asset
side of the balance sheet to the extent determined in its order. HERC allowed this gap to
be funded with borrowing from approved institutions or from equity. Amortisation of the
asset and the financing cost was envisaged to be included in subsequent ARR for the FY
2001-02.
In Andhra Pradesh, Andhra Pradesh Electricity Regulatory Commission (APERC) in its
Tariff Order for the year 2001-02, while accepting the principle of regulatory assets,
observed that
“…the concept of Regulatory Asset is however, much wider and includes a
number of other things. For example, Regulatory Asset can be sought for to fill a
deliberate uncovered revenue requirement gap of a year for one reason or the
other (say apprehension of a tariff shock) with the idea of writing off the asset
over a period. The concept of Regulatory Asset for such matters may require an
order providing for deviation from Sixth Schedule.
44
APERC in the same Order for FY 2001-02, while allowing the past financial losses on
account of factors beyond the control of the utility, stated the following:
“…The Commission proposes to carry forward that portion of financial loss
which is on account of factors beyond the reasonable control of the Licensee,
through a special appropriation in the Aggregate Revenue requirement for FY
2001-02…”
In its Order dated 24th March 2003 for FY 2003-04, APERC reiterated its view on
recovery of past financial losses on account of uncontrollable factors and stated the
following:
“…….The Commission would reiterate its stand that if the licensee incurs any
gain/loss on account of uncontrollable factors, the corresponding amount shall be
made pass through and it would be considered in the revenue requirement of the
ensuing year…….”
In Delhi, the DERC in its first Tariff Order accepted the principle of Regulatory Asset
and stated that
“……….the ARR and expected revenue figures computed by the Commission are
its best estimates. Therefore, Commission would conduct a year-end review of all
the expenses and revenue of the utility for the year 2001-02 along with the next
ARR filing and determine any over or under recovery of allowable costs of DVB
during the year. This ex-post review would also establish any uncovered Shortfall
in revenue requirement, which the Commission could permit the utility to carry
forward as a regulatory asset – on which DVB might be permitted to earn a return
equal to the cost of capital used to finance this asset………..”
Hence, the utilities as well regulators around the country have accepted the above
mechanism as an effective tool to achieve the twin objectives of financial viability of the
utility and protection of consumer interests.
45
4 SALE OF POWER
4.1 Consumer categories
The Board currently has its consumers categorised as follows:
Based on their voltage of use
The consumers are identified as Low Tension (LT) consumers and High Tension (HT)
consumers.
a. Based on their usage pattern
Under the above there are currently 18 broad consumer categories, within the LT and HT
voltage groups. These are further sub-classified as residential, commercial, agricultural,
industrial etc based on the purposes for which electricity is used by them.
LT category consists of the following consumers:
� Domestic Category includes single phase or three-phase supply for lights & fans and
power loads.
� Huts.
� Bulk supply for railway colonies. Defence colonies, police quarters etc.
� Public lighting, Public water works and Public Sewerage system.
� Recognised education institutions, hostels run by recognised institutions, Govt. hospitals,
research institutes etc
� Places of Public worship
� Cottage & tiny industries
� Powerlooms
� LT Industries
� Agricultural and Government seed farms
� LT Commercial & others
� Temporary supply power
EHT/HT Category receiving supply at 11/22/33/110/230 KV has following categories of
consumers: � Registered factories, Tea Estates, Textiles, Fertilisers, Steel Plants, Heavy water
plants, Caustic soda, Railway Traction etc
� Recognised educational institutions, Govt. Hospitals, primary health centres, public
libraries, water works, Public lighting etc
� Places of Public worship
� Commercial
� Lift irrigation Co-operative Societies for Agriculture
� Supply to Pondicherry State
46
b. Based on their level of consumption
Some categories of consumers are further classified into various energy slabs depending
on their level of consumption. The tariff slabs occur in the LT category of consumers.
The last six years category-wise consumption are tabulated below:
Table 1 Consumption for the period FY 2007 to FY 2012.
Category 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Consumption (MUs)
HT Industries,
Railways 15434 14247 16562 17942 19438 21058
Edu. Insts Etc.
(HT)
872 885 936
998 1064 1135
Places of
Public
Workship,
2 3 4 4 4 4
Commercial
and other HT 1408 1431 1514 1671 1844 2034
Lift irrigation
and co-ops
(HT)
9 9 11 12 14 15
Pondicherry 393 373 420 445 471 499
HT others 210 193 0 0 0 445
Domestic 12575 13387 13709 14524 15578 16309
Huts, 190 195 216 229 243 258
Defense
colonies etc 3 12 3 4 5 6
Public lighting
& water works 973 1213 1043 1077 1111 1147
Recognized
Education.
Institution.
335 595 357 471 620
817
places of public
worship (LT) 68 115 74 78 83 88
Cottage, Tiny 264 610 284 416 610 895
Power loom 672
799
720
749
779
811
Industries 4585 3800 4924 4912 4902 4893
Agriculture &
Govt seed farm 11107 11499 11918 12870 14116 15245
Commercial
and other LT 3731 3699 4003 4348 4728 5148
Total
consumption 52831
53065
56698 60751 65610 70817
47
The load forecast takes into account underlying economic growth and other forces that
affect electricity consumption in the major categories of load. An attempt has been made
to refine the forecasts in the wake of economic outlook for the state and check that they
are consistent with the likely movements of the principle macroeconomic parameters of
demand. The basic parameters underlying load forecast are:-
• Sales data up to FY 2008 has been used for analysis
• Managing agricultural demand and
• Rationalisation of tariffs which include incentive structure for HT
consumers, increase in tariffs at inflationary level for subsidising
categories and increase in tariffs for subsidised categories including
agriculture.
The approach for development of the load forecast for each category is explained below.
(a) Domestic or Residential: The domestic load growth is expected to grow
with the increase in population as well as growth in per capita income. The
past trend shows an increasing demand in this category, with even the YOY
rates increasing. Though there seems to be an imminent saturation in the
number of domestic consumers, the growth trend is expected to continue as
the quality of life increases, thereby increasing energy requirements as well.
Further, a lot of consumers from huts category would shift to domestic
category.
(b) Commercial: The commercial load growth is expected to grow again with
the increase in population as well as increased spending. Tamil Nadu
primarily being a service economy (to a large extent), commercial demand
growth is expected to continue growing at an increasing YOY rate during the
projection period.
(c) Industrial Load (Low, Medium, High): The load would depend upon the
capital formation as well as the growth in manufacturing sector. The effect of
captive generation is also a major parameter in determining the future
demand growth in industrial HT sector. Past trends have shown small
increase YOY growth rate in industrial HT demand, though Industrial LT
demand has shown reasonable growth. With measures to retain HT clients
48
and neutralise the impact of captive generation, HT demand is expected to
grow at a low YOY rate.
(d) Public Lighting, water works, etc: The load growth is expected to depend
upon the spending of Government for social services. During the past, YOY
growth rate has shown a significant decrease in load growth. The previous
year rates have been taken as an indicative benchmark for projecting growth
in this category.
(e) Agriculture: Agricultural consumption has been 100% un-metered in the
past with no tariff. The latest tariff order provides a minimal tariff rate for
agriculture. The TNEB has nearly 19 lakh agricultural consumers with a
connected load of 103.30 lakh HP. There is an estimated increase of 40000
agricultural connections per year.
Based on the growth rate, the projected sales for the years FY 2010-11, FY 2011-12 and FY 2012-13 are as under:-
Table 4Category-wise sales (MU)
FY 2010-11 FY 2011-12 FY 2012-13
Tariff
Category
No. of
Consumers
Estimated
Consumption
(MU)
No. of
Consumers
Estimated
Consumption
(MU)
No. of
Consumers
Estimated
Consumption
(MU)
High Tension
I-A Industries including Railway
Traction
5851 17942 6363 19438 6920 21058
II-A Recognised Education Inst. Etc. 786 998 803 1064 821 1135
II- B Places of Public worship 7 4 9 4 10 4
III Commercial and others
1499 1671 1587 1844 1681 2034
IV Lift Irrigation societies 12 12 12 14 12 15
V Pondicherry 3 445 3 471 3 499
VI
Supply to other states
0 0 0 0 0 445
49
FY 2010-11 FY 2011-12 FY 2012-13
Tariff
Category
No. of
Consumers
Estimated
Consumption
(MU)
No. of
Consumers
Estimated
Consumption
(MU)
No. of
Consumers
Estimated
Consumption
(MU)
Low Tension
I-A Domestic 15806712 14524 16924311 15578 18120929 16309
I-B Huts 1308313 229 1367368 243 1429089 258
I –C Defense colonies etc 771 4 890 5 1027 6
II-A St. Lights and Water supply 541718 1077 617489 1111 703858 1147
II-B Recognised Education Inst. Etc. 111250 471 110863 620 110478 817
II-C Places of Public worship
134659 78 142739 83 151303 88
III-A(1) Cottage Industries
51370 416 54325 610 57450 895
III-A(2) Power looms 129377 749 144687 779 161809 811
III-B Industries 346837 4912 354309 4902 361941 4893
IV Agriculture 1976246 12870 2023646 14116 2072183 15245
V Commercial and others 2802911 4348 2991467 4728 3238111 5148
TOTAL 23218322 60751 24740871 65610 26417625 70817
50
5 Generation
The Board’s generating capacity comprises a mix of coal and gas based thermal, hydro and wind
power stations. Around 52% of the installed capacity of the Board (State sector) is thermal, while
38% is based on hydro sources. The remaining share comprises gas and wind based sources
5.1 Thermal Generation (Including Gas Thermal)
The Board has about 2970 MW of coal based thermal capacity consisting of four
stations at Ennore (ETPS),Tuticorin (TTPS), Mettur (MTPS) and North Chennai
(NCTPS). Also, Tamil Nadu Electricity Board has four gas based stations namely Basin
Bridge GTPS, Kovilkalappal GTPS, Valathur GTPS I&II & Kuttalam GTPS.
The Generation plan is an integrated exercise with the energy requirement
estimation and provides detailed analysis of the Generation requirements, investments,
necessary financial costs of generation and preferred despatch order. However, the
Generation plan is based on broad level assumptions with respect to investments. It also
takes into account the demand (peak and normal). The whole demand supply balance
rests on the premise of estimated availability of energy from the new plants. Any
deviations from the forecast due to delay/non-availability of energy as estimated would
affect not only the demand supply balance but would also the overall financial position
of the Board.
The load despatch has been considered on hourly despatch based on Merit Order
principles. Thus, the load profile of different consumers as well as that of the system
would be crucial in determining the overall supply. Estimates regarding cost of power
from new plants have been based on their fixed and variable cost assumptions. Actual
cost of power purchased from these plants may however vary from the assumptions
51
made. Any major variation in the cost structure also would affect the merit order
despatch schedule for the future and ultimately overall cost of supply.
The assumptions regarding the PLFs are discussed here below:
� TTPS, MTPS ETPS and NCTPS have achieved PLF levels around 85.35 %,
87.78%, 49.17% and 86.52% respectively during the year 2008-09. The PLF
levels are expected to improve further on completion of statutory overhaul works.
� Regarding ETPS, the PLF levels are expected to improve further on completion of
R&M works.
Table 1 Installed capacity of coal based thermal stations
Source Unit Installed
Capacity
(MW)
Date of
Commissioning
Ennore T.P.S. Unit I 60 31.03.70
Unit II 60 14.02.71
Unit III 110 17.05.72
Unit IV 110 26.05.73
Unit V 110 02.12.75
Sub-total 450
Tuticorn T.P.S. Unit I 210 09.07.79
Unit II 210 17.12.80
Unit III 210 16.04.82
Unit IV 210 11.02.92
Unit V 210 31.03.91
Sub-total 1050
Mettur T.P.S. Unit I 210 07.01.87
Unit II 210 01.12.87
Unit III 210 22.03.89
Unit IV 210 27.03.90
Sub-total 840
North Chennai Unit I 210 25.10.94
T.P.S. Unit II 210 27.03.95
Unit III 210 24.02.96
Sub-total 630
TOTAL 2970
52
Table 2 Installed capacity of gas based thermal stations
Source Unit
Installed
capacity
(MW)
Date of commissioning
Unit. I 30 12.02.96
Unit. II 30 25.02.96
Unit. III 30 26.03.96
Basin Bridge
GTPS
Unit. IV 30 31.03.96
Sub Total 120
Kovilkalappal
GTPS Unit. I 107.88 30.03.2001 (CC)
Valuthur GTPS I Unit. I 95 13.03.2003 (CC)
Kuttalam GTPS Unit. I 101 24.03.2004 (CC)
Valuthur GTPS II Unit. I 92.0 31.03.2008 (CC)
Total 515.88
5.1.1 PROJECTION OF GENERATION
The station wise projection of the generation from the individual stations has been
estimated based on their annual maintenance plan and the historical efficiency levels of
individual stations
Table 3 Projection of capacity (figures in MW)
Capacity (MW)
2007-08
(previous
year
audited))
2008-09
(previous year
preliminary)
2009-10
(current year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
ETPS 450 450 450 450 450 450
TTTPS 1050 1050 1050 1050 1050 1050
MTPS 840 840 840 840 840 840
NCTPS 630 630 630 630 630 640
Kuttalam GTTP 101 101 101 101 101 101
Basin Bridge GTTP 120 120 120 120 120 120
Kovilkallappal GTTP 107 107 107 107 107 107
Valuthur GTTP 95 95 95 95 95 95
Valuthur GTTP-
Additional
92 92 92 92 9
NCTPS Stage II Unit I - - - 600 600 600
NCTPS Stage II Unit 1I - - - - 600 600
MTPS Stage III - - - - 600 600
53
The plant load factor for FY 2007-08 to FY 2012 -13 is given below.
Table 4 Projections on Plant Load Factor (PLF)
Based on the above projections of plant load factor, the energy generation for the current
and ensuing year is as set out in the table below..
Table 5 Energy generated (figures in MU)
Sources
2007-08
(previous year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
ETPS 2032 1938 1601 2003 2003 2003
TTPS 7974 7850 7242 8280 8280 8280
MTPS 6692 6459 6529 6550 6550 6550
NCTPS 4657 4775 4788 4550 4550 4550
Kuttalam GTTP 68 724 671 682 682 682
Basin Bridge GTTP 63 179 193 248 248 248
Kovilkallappal GTTP 677 708 511 644 644 644
Valuthur GTTP I 611 704 663 596 596 596
Valuthur GTTP II - 250 551 633 633 633
NCTPS Stage II Unit I &II - - - 115 5501 7128
MTPS Stage III - - - - 1728 3802
Sources
2007-08
(previous year
audited))
2008-09
(previous year
preliminary)
2009-10
(current
year)
2010-11
(estimate
d)
2011-12
(estimate
d)
2012-13
(estimated)
ETPS 51.56 % 49.17% 40.61% 50.81% 50.81% 50.81%
TTPS 86.70 % 85.35% 78.74% 90.02% 90.02% 90.02%
MTPS 90.94 % 87.78% 88.73% 89.01% 89.01% 89.01%
NCTPS 84.38 % 86.52% 86.75% 82.45% 82.45% 82.45%
Kuttalam GTTP 7.72% 81.84% 75.87% 79.68 % 77.08% 77.08%
Basin Bridge GTTP 5.99% 17.07% 18.35% 23.59% 23.61% 23.61%
Kovilkallappal GTP 72.19% 75.51% 54.53% 68.71% 68.71% 68.71%
Valuthur GTTP I 73.37% 84.56% 79.63% 71.62% 71.62% 71.62%
Valuthur GTTP II - 30.93 % 68.24 % 78.37 % 78.37 % 78.37%
54
5.1.2 ASSESSMENT OF COST OF FUEL (COAL / GAS)
Out of the total installed capacity of is 5690 MW of the Board 2970 MW is thermal
using coal as its primary fuel and oil as a secondary fuel. Further additional capacities of
600 MW during 2010-11 and 1200 MW capacity during 2011-12 are expected to be
added. The fuel cost has been separately estimated for coal and oil. Due to locational
factors, the Board uses multimode transport (rail- cum- sea- cum- rail route) to transport
coal to its stations located in the state which results in increased cost on account of
transportation of coal. Additional costs are also borne by the Board to meet the Ministry
of Environment and Forest stipulations on environmental pollution as well as the disposal
of fly ash. This has resulted in high variable cost of operation of the thermal stations.
Specific consumption of Coal, Furnace Oil, gas and other Oils for Tamil Nadu Electricity
Board ’s own stations are assumed based on performance of FY 2007-08. It is also
assumed that the consumption levels would be maintained over the period through
regular maintenance. The cost of fuel has been escalated at the inflationary levels. The oil
costs have been estimated as per the contracts for supply of oil, with necessary escalation
to also account for the inflation. The projections related to fuel expenses are given
below.
Table 8 Projection on specific coal consumption (figures in Kg/kWh)
Sources 2007-08
(previous year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
ETPS 0.97 0.94 0.95 0.95 0.95 0.95
TTTPS 0.78 0.74 0.75 0.77 0.62 0.62
MTPS 0.67 0.68 0.75 0.75 0.75 0.75
NCTPS 0.65 0.68 0.71 0.66 0.59 0.59
55
Table 9 Projection on Specific HFO consumption (figures in ML/kWh)
Sources 2007-08
(previous year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
ETPS 4.72 7.10 6.17 6.00 6.00 6.00
TTTPS 2.95 3.42 3.84 3.80 3.80 3.80
MTPS 0.41 0.65 0.25 1.90 1.90 1.90
NCTPS 0.58 0.78 0.72 1.83 1.83 1.83
Table 10 Projection on specific HSD/LDO consumption (figures in ML/kWh)
Sources 2007-08
(previous
year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
ETPS 1.42 1.70 0.72 2.00 2.00 2.00
TTTPS 0.07 0.07 0.05 0.20 0.20 0.20
MTPS 0.04 0.03 0.02 0.10 0.10 0.10
NCTPS 0.12 0.13 0.13 0.17 0.17 0.17
Basin Bridge GTTP 0.64 0.69 0.90 0.90 0.90 0.90
Table 11 Projection on consumption of gas (figures in ml/kWh)
Sources 2007-08
(previous
year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Kuttalam GTTP 0.194 0.191 0.191 0.190 0.194 0.194
Kovilkallappal GTTP 0.194 0.196 0.198 0.194 0.194 0.194
Valuthur GTTP I 0.210 0.189 0.203 0.200 0.214 0.195
Valuthur GTTP II - 0.280 0.208 0.200 0.195 0.200
Table 12 Projection on consumption of naptha (figures in ML/kwh)
2007-08
(previous
year
audited))
2008-09
(previous year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Basin Bridge GTTP 0.416 0.418 0.430 0.425 0.425 0.425
The projections on price of fuels have been based on inflationary trends projected over the year.
The price of coal estimated for the current year and projected over the ensuing year is as set out
in the table below:-
56
Table 13 Projection on price of coal (figures in Rs/MT)
Sources 2007-08
(previous
year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
ETPS 1794 1899 1789 1879 1972 2071
TTPS (Indian) 2095 2527 2161 2269 2269 2269
TTPS (Imported) 3260 5427 5439 5711 5711 5711
MTPS (Indian) 2109 2242 2126 2233 2344 2461
MTPS (Imported) 3545 5603 5614 - - -
NCTPS (Indian) 1732 1830 1721 1807 1897 1992
NCTPS (Imported) 3159 5183 5209 5470 5743 -
Table 14 Projection on price of HFO (figures in Rs/ KL)
Table 15 Projection on price of HSD/LDO (figures in Rs/KL)
2007-08
(previous
year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
ETPS 29336 45721 40970 43018 45169 47428
TTPS 33773 37294 32658 34291 34291 34291
MTPS 33416 35408 34453 36175 37984 39883
NCTPS 32665 35625 32004 33604 35284 37048
Basin Bridge GTTP 32133 34428 34413 34413 34413 34413
Sources 2007-08
(previous
year
audited)
2008-09
(previous
year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
ETPS 24430 26248 24744 25981 27280 28644
TTPS 23045 28619 23245 24407 24407 24407
MTPS 22502 24380 20598 21627 22709 23844
NCTPS 21048 23200 25252 26514 27840 29232
57
Table 16 Projection on price of gas (figures in Rs/ 1000 m3)
Table 17 Projection on price of Naptha (Figures in Rs/ KL)
2007-08
(previous
year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Basin Bridge GTTP 27325 23423 26152 28251 28251 28251
5.2 Hydro based generation
The Board has nearly 36 small hydro stations of total capacity at 2186.65 MW. Most of
the stations except power stations located in the Nilgiris are irrigation tied. The state has
almost utilised its available hydro generation potential.
5.2.1 PROJECTION OF GENERATION
The hydel generation for FY 2008-09 is 5386 MU (Gross). However if for the reasons beyond control
hydel generation is significantly different then it would affect the over all generation as well as
purchase requirements and consequently the financial position of the Board.
Table 18 Projection of capacity (figures in MW)
Capacity (MW) FY 2009-10 FY 2010-11
Existing Hydro 2187 2187
Bhavani Barrage – I & II 20
Periyar Vaigai I to IV - 13
Bhavani Kattalai Barrage – II - 30
Bhavani Kattalai Barrage – III - 30
TOTAL 2187 2280
2007-08
(Previous
year
audited))
2008-09
(previous year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Kuttalam GTTP 3520 3520 3520 3520 3520 3520
Kovilkallappal
GTTP 3520 3520 3520 3520 3520 3520
Valuthur GTTP I 3520 &
8722
3520 &
8722
3520 &
8722
3520 &
8722
3520 &
8722
3520 &
8722
Valuthur GTTP II 3520 &
8722
3520 &
8722
3520 &
8722
3520 &
8722
3520 &
8722
58
Table 19 Projection of available energy (figures in MU)
5.3 Wind based generation
Tamil Nadu is a pioneer among the State Electricity utilities in India in promoting
Renewable Energy programmes. The 1st Wind mill with 50 kW capacity was erected by
TNEB during the year 1985 and commissioned in January 1986. Subsequently, 17.555
MW of demonstration wind farm projects were commissioned during 1990`s.
• The total installed capacity of Wind power projects in Tamil Nadu is aggregated 4287
MW as on 31.03.2009.
• Tamil nadu’s contribution is around 60 % of the country’s total installed capacity of
wind mill power projects.
WIND MILL CAP/GENERATION AS ON 28-02-2009
(BOARD & PRIVATE)
Table 20
Installed Capacity in MW Generation in Sl.
No.
Year
During Year Cum Total Million Units
1 Upto 1997 0.000 676.155 1485.372
2 1997-1998 31.140 707.295 765.854
3 1998-1999 17.765 725.060 928.865
4 1999-2000 45.675 770.735 1156.593
5 2000-2001 41.895 812.630 1094.175
6 2001-2002 44.035 856.665 1257.110
7 2002-2003 133.600 990.265 1305.703
8 2003-2004 371.225 1361.490 1714.475
Generation in
Installed Capacity in MW Sl.
No.
Year
During Year Cum Total Million Units
9 2004-2005 678.735 2040.225 2260.732
10 2005-2006 857.555 2897.780 3444.281
11 2006-2007 577.910 3475.690 5268.982
12 2007-2008 381.075 3856.765 6066.646
13 2008-2009
(upto 03/09) 430.975 4287.740 6655.150
TOTAL 4287.740 33403.938
Available Net
Energy (MU)
20 09-10 2010-11 2011-12
2012-13
Overall Hydro 5404 4924 4924 4924
59
:
Table 19 Projection of available energy (figures in MU)
The total fuel cost of generation station wise is as below. The cost includes cost of coal,
HFO, HSD/LDO , gas and naphtha wherever applicable.
Table 24 Projected fuel cost (coal, oil , gas and naptha water lubricants other fuel cost) station-wise (figures in Rs Crores)
Sources
2007-08
(previous year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
ETPS 385.27 396.65 304.04 406.00 426.12 447.50
TTPS 1449.59 1875.50 1549.85 1967.99 1967.99 1967.91
MTPS 1028.51 1217.43 1231.14 1126.25 1494.13 1961.67
NCTPS 592.19 757.94 714.86 691.05 1554.31 1906.95
Kuttalam GTTP 11.31 53.37 45.10 46.17 46.48 46.48
Basin Bridge GTTP 74.57 175.30 223.48 302.81 302.82 302.82
Kovilkallappal GTTP 51.17 53.30 40.96 50.23 50.23 50.23
Valuthur GTTP I 36.31 88.27 60.99 54.09 57.90 57.90
Valuthur GTTP II - 32.30 52.70 57.44 56.26 56.26
Total 3628.92 4650.06 4223.07 4702.03 5956.24 6797.80
Table 25 Cost of fuel (figures in Rs Crores)
Component
2007-08
(previous year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Cost of coal 3353.53 4095.11 3690.34 4005.78 5213.11 6027.37
Cost of Oil 104.80 155.69 114.87 194.56 238.49 265.79
Cost of gas 98.79 227.24 199.75 207.94 210.87 210.87
Cost of naphtha 71.81 172.01 218.09 293.77 293.77 293.77
Other fuel related cost 49.09 43.13 42.83 21.36 21.36 21.36
Total Cost 3678.01 4693.20 4265.89 4723.40 5998.30 6829.55
Available Net
Energy (MU)
20 09-10 2010-11 2011-12
2012-13
Wind 8283 8452 8152 8152
60
6 Power Purchase
The State sources its power from central sector stations of Ramagundam of NTPC, NLC I
& II, Madras Atomic Power Station (MAPS) at Kalpakkam ,Kaiga Atomic Power Station
(KAPS), NLC expansion I, Talcher, Kayankulam, Eastern region and Power Exchanges
etc. Apart from this the state also has a number of private captive, cogeneration and wind
energy projects, which supply power to the Board. The State also has seven Independent
power projects namely the GMR, PPN, Samalpatti, Madurai Power Corporation,
STCMS, Aban Power Co. and Penna Ltd.
The Tamil Nadu grid is connected to Karnataka, Andhra Pradesh and Kerala grids
through the 400 KV and 230 KV transmission lines. The 400 KV inter-state lines are
utilised to transfer the power generated at Central sector generating stations to the
respective beneficiaries. The Southern Regional Load despatch centre at Bangalore co-
ordinates the inter-state power flows over the 400 KV and 230 KV lines.
6.1 Central sector power
6.1.1 EXPECTED PURCHASE FROM CENTRAL SECTOR STATIONS
Energy availability from existing Central stations has been assumed to remain unchanged
in the ensuing financial years also. The commissioning schedule and the share of TNEB
as notified by GOI have been taken into account while formulating the projection of the
power purchase from new CGS stations.
61
Allocation of power from central sector stations for TNEB as per the GOI notification as
indicated below:-
Table 2 Capacity allocation from different stations
Central sector power
station
State in which
located
Installed capacity
(MW)
Allocation to
TNEB (in MW)
Kaiga APS Karnataka 660 171
NTPC (SR)
(Ramangundam STPS)
Andhra Pradesh 2600 660
M APS Tamil Nadu 440 330
Neyveli Lignite Corp– I Tamil Nadu 600 475
Neyveli Lignite Corp– II Tamil Nadu 1470 466
Neyveli Expansion TS I Tamil Nadu 420 226
NTPC-Kayankulam, Kerala. 360 180
NTPC-Talcher-Stage-II Orissa 2000 498
6.1.2 BASIS OF FORECASTING ENERGY PROCUREMENT PLAN
The power purchase plan for FY10-11, FY11-12 and FY 12-13 are based on detailed
station wise analysis of monthly Energy Sent Out (ESO) and the consequent energy
availability from the generating stations during the above financial years. As discussed
earlier, only the share notified by GOI for the central generating stations for Tamil Nadu
has been taken into account for forecasting the energy procurement for the ensuing years.
62
6.1.3 POWER PURCHASE EXPENSES FROM CENTRAL SECTOR STATIONS
The Power purchase expenditure for FY 2007-08 and 08-09 is based on the actual
expenditure during the year. The projection of the purchase cost during the current year
has been made based on the availability of power during FY 2007-08 and FY 2008-09
from these stations. The energy availability for the ensuing years from the central sector
stations is as given under.
Table 1.Power purchase (Central sector stations) (figures in MU)
Sources
Purchase
during
FY 2007-
08 (MU)
Purchase
during FY
2008-09
(MU)
Purchase
during
FY 2009-
10 (MU)
Estimated
purchase
during FY
2010-11 (MU)
Estimated
purchase
during FY
2011-12
(MU)
Estimated
purchase during
FY 2012-13
(MU)
Neyveli Lignite Corp– I 2916 2810 3215 3027 3027 3027
Neyveli Lignite Corp– II 3068 2551 2941 2842 2842 2842
Neyveli-TS-I Expansion 1621 1527 1520 1434 1434 1434
M APS 1064 904 1408 1431 1431 1431
Kaiga APS 564 613 747 911 911 911
NTPC (ER) 1061 818 743 743 743 743
NTPC (SR) 3908 4130 4015 3913 3913 3913
Traders 909 1864 3909 2065 0 0
NTPC –SR Stage III 1096 1030 1007 965 965 965
NTPC kayankulam 1067 1049 1206 1076 926 926
NTPC Talcher Stage -II 4051 3484 3654 3636 3636 3636
PGCIL - SR & ER 0 0 0
0 0 0
PGCIL - ABT 854 983 981 978 0 0
KSEB 0 0 0 0 0 0
Kudankulam (proposed) 0 0 0 2824 3137 3766
Kalpakkam (proposed) 0 0 0 0 902 902
NTPC - Tamil Nadu
Electricity Board JV at
Vallur(proposed)
0 0 0 864 3240 5468
NLC Stage -II
(Proposed)
0 0 0 1788 1750 1750
Simhadri (proposed) 0 0 0 0 872 1026
NLC - Tamil Nadu
Electricity Board JV at
Tuticorin (proposed)
0 0 0 0 400 1601
63
Table 2 Cost of power purchase (figures in Rs. Crores)
Sources
Purchase
during
FY 2007-
08 (in
Crores)
Purchase
during FY
2008-09
(in Crores)
Purchase
during FY
2009-10
(in Crores)
Estimated
purchase
during FY
2010-11
(in Crores)
Estimated
purchase
during FY
2011-12
(in Crores)
Estimated
purchase during
FY 2012-13
(in Crores)
Neyveli Lignite Corp– I 514.82 582.29 657.09 677.53 732.02 792.56
Neyveli Lignite Corp– II 553.38 427.28 501.76 530.90 576.37 624.69
Neyveli-TS-I Expansion 390.82 333.66 346.14 353.26 374.77 397.71
M APS 201.67 170.79 271.74 303.37 333.42 367.77
Kaiga APS 165.09 179.78 227.09 303.37 334.34 368.04
NTPC (ER) 179.40 166.51 164.31 176.19 188.83 202.20
NTPC (SR) 600.49 757.07 863.77 907.26 969.87 1040.30
Traders 313.93 1106.21 2544.76 1344.32 0 0
NTPC –SR Stage III 195.23 208.68 227.88 235.43 250.87 267.27
NTPC
kayankulam
888.15 865.67 916.10 900.32 981.02 1068.17
NTPC Talcher Stage -II 521.21 560.21 550.67 581.80 618.16 658.15
PGCIL - SR & ER 406.34 382.08 496.82 546.50 601.15 661.27
PGCIL - ABT 299.64 715.24 769.56 846.52 0 0
KSEB 0 0 0 0 0 0
Kudankulam 0 0 0 1358.13 1508.86 1811.56
Kalpakkam (Exp) 0 0 0 0 191.02 191.02
NTPC - Tamil Nadu
Electricity Board JV at
Vallur
0 0 0 250.56 939.60 1585.58
NLC Stage -II 0 0 0 518.66 507.38 507.38
Simhadri 0 0 0 0 252.91 297.54
NLC - Tamil Nadu
Electricity Board JV at
Tuticorin
0 0 0 0 116.04
464.16
64
6.2 Captive/Cogeneration and Wind sources
The Board has entered into agreements with some of the private energy generators
owning captive generating sources and co-generation sources, which pump their surplus
power into the TNEB grid. In addition, private wind power producers also sell their
power to TNEB based on option exercised by them. The estimation of the quantity of
power likely to be made available for sale is based on prevailing trends.
Table 3 Projected Energy procurement (figures in MU)
Sources
Purchase
during FY
2007-08
(MU)
Purchase
during FY
2008-09
(MU)
Purchase
during FY
2009-10
(MU)
Estimated
purchase
during FY
2010-11 (MU)
Estimated
purchase
during FY
2011-12
(MU)
Estimated
purchase during
FY 2012-13
(MU)
Captive 711 828 779 671 571 371
Cogeneration
& Bio Mass
1451 1102 1250 1589 1252 889
Wind 6055 6645
8283 8452 8152 8152
Table 4 Cost of power purchase (figures in Rs. Crores)
Sources
Purchase
during FY
2007-08 (in
Crores)
Purchase
during FY
2008-09
(in Crores)
Purchase
during FY
2009-10
(in Crores)
Estimated
purchase
during FY
2010-11 (in
Crores)
Estimated
purchase
during FY
2011-12
(in Crores)
Estimated
purchase during
FY 2012-13
(in Crores)
Captive 204.54 345.01 268.76 231.50 231.50 231.50
Cogeneration
& Bio Mass
447.91 364.19 509.33 659.17 519.58 368.94
Wind 1979.10 1995.43 1995.43 1995.43 1923.87 1923.87
65
6.3 Independent power producers
The Board has entered into power purchase agreements with several independent power
producers for taking electricity.
The procurement from various sources is expected to be lower in the wake of planned
procurement from the less expensive sources like Talcher, Southern Region., Eastern
Region.
Table 3 Projected power purchase (figures in MU)
Sources Purchase
during FY
2007-08
(MU)
Purchase
during FY
2008-09
(MU)
Purchase
during FY
2009-10
(MU)
Estimated
purchase
during FY
2010-11
(MU)
Estimated
purchase
during FY
2011-12
(MU)
Estimated
purchase
during FY
2011-12
(MU)
GMR PCPL 1132 1362 1292 1418 900 750
Samalpatti 517 691 555 722 300 300
Pillaiperumalnall
ur
2121 2147 2176 2259 2000 1600
ST-CMS 1689 1638 1701 1809 1700 1574
Madurai Power
Corpn
511 663 540 540 300 300
Aban 852 806 820 850 850 850
Penna 358 338 503 400
400 400
The purchase price from these sources is governed by the applicable power purchase
agreements with these projects. The tariff payments to the IPPs are based on a fixed and
variable charge incurred. The table below describes the various tariff elements and the
variables on which these are computed.
66
Table 4 Station-wise fixed cost (figures in Rs. Crores)
Sources
Purchase
during FY
2007-08
(in
Crores)
Purchase
during FY
2008-09
(in
Crores)
Purchase
during FY
2009-10
(in Crores)
Estimated
purchase
during FY
2010-11
(in
Crores)
Estimated
purchase
during FY
2011-12
(in
Crores)
Estimated
purchase
during FY
2012-13
(in
Crores)
GMR PCPL 160.69 200.66 185.70 197.32 203.17 209.87
Samalpatti 93.64 107.51 98.12 101.84 100.00 103.06
Pillaiperumalnallur 296.88 305.44 309.92 314.92 292.88 292.88
Madurai Power Corpn 96.91 107.49 102.10 103.38 105.09 109.66
ST-CMS 288.66 306.00 316.73 312.14 307.88 303.62
Aban
126.63 125.84 123.17 119.18 111.45
90.37
Penna 64.73 57.51 63.80 62.88 60.61 59.64
Table 5 Variable Cost for the sources (figures in Paise/ kwh)
Sources
Purchase
during FY
2007-08
(in
Crores)
Purchase
during FY
2008-09
(in Crores)
Purchase
during FY
2009-10
(in Crores)
Estimated
purchase
during FY
2010-11 (in
Crores)
Estimated
purchase
during FY
2011-12
(in Crores)
Estimated
purchase
during FY
2012-13
(in Crores)
GMR PCPL 608.04 851.42 842.36 930.88 710.93 652.79
Samalpatti 285.77 436.76 372.92 533.01 243.48 268.59
Pillaiperumalnallur 1184.85 1593.86 1274.04 313.20 277.29 227.25
Madurai Power Corpn 272.15 428.93 351.60 386.24 236.67 260.33
ST-CMS 250.31 246.79 271.47 298.62 328.47 361.32
Aban 70.42 66.48 82.40 80.79 80.45 93.67
Arkay
27.56 32.01 63.20 46.10 40.40
33.50
67
Table 6 Cost of power purchase (figures in Rs. Crores)
Sources
Purchase
during FY
2007-08 (in
Crores)
Purchase
during FY
2008-09
(in Crores)
Purchase during
FY 2009-10
(in Crores)
Estimated
purchase
during
FY 2010-
11
(in
Crores)
Estimated
purchase
during FY
2011-12
(in Crores)
Estimated
purchase
during FY
2012-13
(in Crores)
GMR PCPL
768.73 1052.08 1028.05 1128.19 914.10 862.66
Samalpatti
379.40 544.27 471.04 634.85 343.48 371.65
Pillaiperumalnallur
1481.73 1899.30 1583.96 628.12 570.17 520.63
Madurai Power
Corpn
369.06 536.42 453.69 489.61 341.75 369.99
ST-CMS 538.97 552.79 588.20 610.76 636.35 664.94
Aban
197.05 192.32 205.57 199.97 191.90 184.04
Arkay
92.29 89.52 127.00 108.98 101.10 93.14
68
6.4 Total power purchase cost
The total power purchase units and cost from the various sources for the years 2007-08 to 2012-
13 are as follow
Table 7 Total power purchase units and cost
Purchase
during FY
2007-08
Purchase
during FY
2008-09
Purchase
during FY
2009-10
Estimated
purchase
during FY
2010-11
Estimated
purchase
during FY
2011-12
Estimated
purchase
during FY
2012-13
Units
(Figures in million
units )
37574 37983 43245 47207 46554 49526
Cost
(Figures in Rs.
Crores)
12195.08 14337.48 15774.39 16527.84 15141.12 16440.10
Hence the total power purchase cost during FY 2009-10 is expected to be Rs 15774.39 Crores,
while for FY 2010-11 is expected to be Rs 16527.84Crores.
69
7 Energy Balance and efforts towards system improvement
The energy balance for the current year and ensuing financial year has been formulated
after considering all the factors relating to demand and energy requirement. . A T&D
loss level of 18% has been arrived at on the basis of energy input into the system and
total output from the system for 2007-08 to 2012-13
Table 8 Energy Balance
Particulars
2007-08
(previous
year
audited)
2008-09
(previous year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Total Generation and
power purchase
64428 64713 69144 74086 80012 86362
Energy Sale
HT sale 18328 17141 19447 21072 22835 25200
LT sale 34503 35924 37251 39679 42775 45617
Total sale 52831 53065 56698 60751 65610 70817
Energy Loss in the system 11593 11648 12446 13336 14402 15545
T&D loss % 18.00% 18.00% 18.00% 18.00% 18.00% 18.00%
7.1 Assessment of the T&D loss levels
T & D losses in the State are at present among the lowest in the country, with latest
TNERC Tariff Order assessing the losses at 18%. Most of the T & D losses are technical
in nature. Though it must be mentioned that a detailed study to accurately determine T &
D losses is yet to be undertaken and results of such a study may provide a better basis for
formulating further T & D loss reduction strategies. T & D losses are assessed as the
difference between the energy input and the estimated sales. The various steps that are
being undertaken by the Board like strengthening of lines, addition of distribution
transformers, etc. an overall loss level of 18% has been considered for calculating the
various components of the annual revenue requirement for the year.
• Reduction of HT:LT ratio by erecting more High Tension lines and erecting new
distribution transformers
70
• Establishment of new substations
• Strengthening of HT line conductors
• Installation of HT shunt capacitors at substation end
• Installation of LT fixed capacitors at LT side of Distributon Transformers
• Erection of link lines
• Re-routing of feeders
Aggregate Transmission and Commercial loss (AT&C)
T&D loss is purely technical in nature and is assessed considering the energy fed in to the
grid and the energy billed.
The AT&C losses on the other hand is assessed considering the energy fed in to the grid
and the energy for which revenue realized which accounts for the collection efficiency
also.
Data for AT & C Losses during 2008-09
Sl.No. Item Unit
1 Self Generation (ex-bus) MU 26731
2 Purchase MU 37983
3 Total input (Ui) (1+2) MU 64714
4 Units Traded with other utilities(Ut) MU 566
5 Units Traded within licensed area (3-4) (Utl) MU 64148
6 Units Billed within utility licensed area (Ub) MU 52499
7 Amount Billed within utility licensed are (Ab) Rs.Crores 15323
8 Amount realized within utility licensed
area.(Ar)
Rs.Crores 15294
9 Collection efficiency (CE=Ar/Ab x100) % 99.81%
10 Units realized (Ur)
= (Ub xCE)/100
MU 52399
11 AT&C losses Ui-Ur MU 12315
12 AT&C losses{(Utl-Ur/Utl} x100 % 18.31%
71
TNERC has fixed the following year wise target of AT&C losses to be achieved by
TNEB up to 2012:
Year 2008-09 2009-10 2010-11 2011-12
Percentage of AT&C
losses
19.30% 18.90% 18.50% 18.10%
Reduction by --- 0.4% 0.4% 0.4%
Steps are being taken to reduce the losses as per the directions of TNERC.
7.1.1 DETECTION OF THEFTS OF ELECTRICITY
7.1.1.1 Enforcement wing
The Enforcement wing, a part of Vigilance cell, working directly under the control of an
Indian Police Service Officer in the rank of Additional Director General of Police – and
is headed by a Superintending Engineer / Enforcement . Enforcement wing consists of 17
Squads. It has 4 divisions each under an Executive Engineer who controls 4 or 5
Enforcement squads. Each squad works under an Assistant Executive Engineer and has a
supporting staff of 8 personnel. Generally the jurisdiction of each Enforcement squad
covers two Electricity Distribution Circles, but for Chennai city, where each squad covers
one circle only. Each squad roughly covers 1 million Electricity consumers.
7.1.1.2 PREVENTIVE ACTIONS TAKEN TO CURB ENERGY THEFTS
1. Installation of metering point in the front of the premises with easy access public
road.
2. Fixing of numbered seals in all vulnerable places such as meter cover, terminal
cover, doors and hinges in pilfer proof boxes, CT chambers, PT chambers, AB
switch handles, metering point fencing etc.
3. Installing electronic meters in all HT / LTCT services which will display and
enable downloading of the tamper indications from the meter, through Common
Meter Reading Instruments (CMRIs), for detection of energy thefts, if any.
4. Replacement of electromechanical meters with high quality meters.
5. To seal the distribution boxes and bus chambers before the meters.
72
6. Provide check meters in a service connection where theft of energy is detected
which has resulted in huge revenue loss to the Board.
7. Laying of incoming cable to the CT chamber ( in CT connected services) in open
ducts with cover, with facility for easy inspection, to avoid tampering of the
incoming cable before its entering the meter, thereby prevent recording of partial
consumption.
8. To prevent tampering of metering circuits, installing two runs of 4 core LT
armoured cable as CT/PT secondary wires, from metering set to metering box.
9. Conducting Energy audit in HT feeders to ascertain as to whether energy sent in
the feeder is being billed and collected leaving technical losses.
10. Create deterrence among power offenders by publishing in the press about the
energy theft cases detected.
11. Creating award scheme up to a maximum of Rs.One lakh for the informers who
give information about theft of energy and effect an immediate payment of
Rs.5,000/- on detection of theft of energy based on the information.
7,1,1,3 DETECTION OF ENERGY THEFTS THROUGH SCIENTIFIC
PLANNING OF INSPECTIONS
The following plan of action is adopted for inspections of service and its prioritization
1. Industries identified as being vulnerable to energy thefts.
2. Seasonal Industries like Ice factories, Ice plants, Sago Mills etc. during the
respective seasons.
3. All HT specialized services once in a year and other Live HT services once in two
years and all LTCT services once in three years are inspected.
4. Industrial and Commercial services having high consumption.
5. Services indicating (i) sudden drop in energy consumption and or
ii) consumption not commensurate with the connected load.
6. Disconnected services
7. Inspections using intelligence report / source reports / public information / media
information
8. By assisting Circle level mass inspection of Domestic services
73
9. Close and effective monitoring at Head quarters to ensure compliance of the
above plan and use of best management practices by the field staff.
10. All Assistant Executive Engineers and Assistant Engineers / Junior Engineer I
Grade of all Enforcement squads have been provided with a cell phone to receive
messages regarding theft of energy and seeking and providing support, in case of
need.
11. All the four Enforcement divisions have been provided with a laptop and a CMRI
for monitoring data based scientific programming of services and for studying the
load curve in HT services for eliciting information about possible energy theft
12. Special drive on inspection of suspected HT industries like, Steel , Carbide etc
during night hours is carried out to detect energy theft cases.
7.1.1.4. RECENT TECHO – MANAGERIAL SOLUTIONS FOR PREVENTION
OF THEFT/ DETECTION / REVENUE COLLECTION
1. CHECK METERS
Check meters have been provided out side the factory premises in respect of HT / LT
services for assessing the consumption as part of an on –going exercise for detection of
energy theft and prevention of revenue leakage. Provision of check meters in steel
industries, plastic industries etc., has been institutionalized to prevent the potential
offenders from committing energy theft offences, even by way of tricky and totally novel
methods, such as would elude normal inspection / detection mechanism. The check
meters are monitored once in three months by Enforcement wing.
2. AUTOMATIC VOICE RECORDING SYSTEM
A separate P&T phone, with voice recording facility has been installed at Chennai,
Coimbatore, Trichy and Madurai Enforcement Division offices for receiving information
about energy theft from the informants or lay public. Extensive publicity is being given
about this measure to the public.
74
3. CHECK LISTS FOR POLICE / TECHNICAL PERSONNEL
A well researched document ( Booklet) with 23 standard formats and check lists has been
designed to ensure fool-proof action on the part of O&M officials in filing FIR in
energy theft cases and for police officials in proper and prompt investigation as also
disposal of these cases. On approval of DGP of the state, Director prosecution and
Chairman / TNEB these booklets have been circulated to all police officers, APPs and
Sub-division level TNEB officials of the state. Arguments in criminal cases, with case
laws, have been nearly standardized and made available to prosecuting staff to ensure
speedy and successful prosecution of energy theft cases.
7.1.1.5 SUPERVISION AND MONITORING OF ENERGY THEFT CASES
A computerized system of all energy theft cases has been created and is maintained and
operated at head quarters level. For senior supervisor officials ( SEs / EEs ) of TNEB,
comprehensive checklists have been designed to help them monitor especially high value
energy theft case. One major benefit is to ensure avoidance of prolonged litigation of
court case through personal intervention of senior officials.
7.1.1.6 CASH AWARD SCHEME
The cash reward scheme envisages, payment of cash reward to the Board Employees,
who are not in-charge of detection of theft of energy and also member of public.
i) Quantum of Cash award:
The amount of cash reward shall be 10% of the extra levy realized subject to a maximum
of Rs.1,00,000/- ( Rupees one lakh only ). The award shall be given after the revenue
become final, settled and collected.
ii) Interim cash Reward:
As the collection of assessed amount is likely to take considerable time, an interium cash
award will be paid to the informant as soon as information is received about theft of
energy and the theft of energy is, detected. The interim cash award shall be 5% of the
amount assessed subject to a maximum of Rs.5,000/- ( Rupees five thousand only )
75
7.1.1.7 INTRODUCTION OF SYSTEM OF COMPOUNDING OF OFFENCES AND
FUNCTIONING OF "ELECTRICITY ADALAT"
By introducing Section 50 (B) in I.E. Act 1910 and thereby creating a provision of
compounding of energy theft offences, speedy disposal of cases – beyond 80% to be
precise is ensured, which, in turn, creates healthy deterrence against power offenders.
In order to reduce the civil cases pertaining to the theft of energy pending in the
various courts and to realize the amount involved, it was decided to hold “Electricity
Adalat” after consulting the Chief Justice of Honourable High Court/Chennai. The
Chief Engineer/Commercial/TNEB has been nominated, as TNEB’s representative
for adjudicating the cases in the “Electricity Adalat”. The “Electricity Adalat” was
inaugurated at High Court/Chennai premises on 17.04.2002.
The Electricity Adalat consist of the following Members.
1. A Retired Judge.
2 A Retired Chief Engineer/Superintending Engineer.
3 A Public Member/any Social Worker.
The cases pending in City Civil Court were taken up at first instant. As the response
from the consumers for settlement of cases through Electricity Adalat was found to be
encouraging, orders were issued for extending the same to all energy theft related cases
pending at various courts, in the District and also at the High Court.
Pending theft of energy cases are being settled at the District level Adalats by the
Superintending Engineers/EDC. Table 2
Year
Sl No Description 2006 - 07
2007 - 08
2008-09
Total no of services
1 HT 3554 3489 3687
2 LT 115044 119762 124030
Total 118598 123251 127717
Theft detected
1 HT 1 2 4
2 LT 2909 3744 4421
Total 2910 3746 4425
Extra levy assessed 1187.11 1245.15 1548.59
in Rs lakhs No, of cases compounded
during the year 2892 3740 4422
225.2 155.84 201.34 Compounding charges
collected in Rs lakh
76
7.1.1.8 Flying Squad
TNEB has formed two Flying Squads to detect the theft of energy cases throughout the
state of Tamil Nadu in addition to the Enforcement squads. The Board has placed the
Coimbatore Flying Squad under Enforcement Wing. The Flying Squad Chennai is
functioning under the direct control of the Chairman / TNEB.
Table 3 Results of the Flying Squad drives to check theft.
Serial Number 2006-07
(4/2004-3/2005)
2007-08
(4/2007-3/2008)
2008-2009
(4/2008-3/2009)
Service Connection Inspected
1 HT
109 22 6
2 LT
5159 5320 5930
Theft Detected
1 HT
1 Nil 1
2 LT
280 252 289
HT
107.09 Nil 82.43
Extra levy
charges
assessed
(Rupees in
lakh)
LT
161.44 173.92 195.09
HT
Nil Nil Nil
Number of
cases
compounded
during the year LT
278 252 285
HT
Nil
Nil
Nil Compounding
charges
collected
(Rupees in
lakh) LT 49.41 24.99 30.57
7.2 Steps for providing efficient service to consumers
7.2.1 ENERGY AUDIT:
TNEB has an excellent record of billing and collection of CC charges from consumers. It
has around 98% level of collection efficiency which is the highest among the various
power utilities in the country. The Board has an effective meter replacement program
wherein the defective meter replacement is carried out on a priority basis.
77
Mandatory energy audit programmes for HT industrial and commercial establishments
were taken up in phased manner by TNEB and energy auditors were registered with
TNEB for this purpose.
However, mandatory energy audit programmes were not legally enforceable after the
enactment of Electricity Act 2003. After enactment of the Energy Conservation Act
2001, the Bureau of Energy Efficiency (BEE), Ministry of Power, GoI was formed to
implement the provisions of the Act and the Tamilnadu Electrical Inspectorate has been
appointed as the State Designated Agency by the Govt. of Tamil Nadu for implementing
the provisions of the Act in the State of Tamil Nadu .As per the Act, the energy intensive
industries / Designated Consumers have to take up energy audit only by engaging energy
auditors accredited by the BEE.
7.2.2 SYSTEMS IMPROVEMENTS:
The Board had constituted a committee to study the problem of low voltage prevailing in
some of the areas. Based on the committee’s recommendations, the generating machines
were loaded for VAR generation to their capability limits wherever required to maintain
voltage profile near to their rated value in their buses. The minimum and maximum
voltage levels and VAR generation in 230KV and 110KV buses are monitored on daily
basis and it is ensured that voltage variation is within limits.
As an experimental measure, LT fixed capacitors were provided at the LV terminals of
distribution transformers for about 10% compensation with 1x9 MVAR for 63 MVA
transformers and 2x9 MVAR for100 MVA transformers. This has resulted in reduction of
the reactive loading and the consumer were advised to take up energy efficient lighting
for the mutual benefit. Further a study undertaken to propose similar measure in the
educational institutes.
Table 4 Capacitors installed during the last two years
Sl.No. Year HV capacitor in
MVAR
LV capacitors in
KVAR
1 2005-06 1570.1
2 2006-07 58.2
3 2007-08
&2008-09
NIL
The system improvement measures in terms of addition of infrastructure arrangements
are detailed below:-
78
Table 5 Additional Sub stations, lines & cables energised
Year No. of SS Length of EHT lines in
Km.
Length of cables in
Km.
2005-06 42 857.18 0.5
2006-07 54 734.21 NIL
2007-08 78 1516.00 41.30
2008-09 73 1206.56 0.06
The Board has also developed an index to regularly monitor the performance of its sub-
stations and feeders. An index for feeder tripping has been developed, wherein the field
data is regularly analysed viz, regular maintenance of the distribution transformers,
earthing of transformers, tree clearance and restringing of the lines are monitored. The
internal benchmarks help the Board improve upon its performance.
7.2.3 EFFICIENT SERVICE TO CONSUMERS
Most of the complaints on billing or accounting are being settled across the table
during the office hours in the field Offices except in cases where further investigation is
needed. In such cases the required details would be obtained in the shortest possible time
and the complaints settled amicably.
7.2.3.1 Consumer Grievance Redressal Forum:-
Consumer Grievance Redressal Forum have been formed and are actively working
in all the 39 Circles Offices with SEs/EDC as Chairperson and two other members
nominated by the concerned District Collectors. Consumer can approach these forums for
sorting out their Grievances.
7.2.3.2 Call Centre
Automatic "fuse off call centre" is functioning already in Chennai, Madurai, Trichy,
Coimbatore, Erode, Salem, Vellore , Tirunelveli, Tirupur and Nagercoil .
7.2.3.3 Same day service connection
The Board has initiated several schemes aimed at providing better service to the
consumers. A 'same day service connection scheme' has been introduced for LT
domestic, commercial and industrial consumers from 1.4.2000.
79
7.2.3.4 Training Programs.
Programmes for attitudinal changes and for equipping the personnel with updated
knowledge are being conducted regularly. TNEB has come out with a declared training
policy in line with the National Training policy communicated by the CEA. The Training
policy has been documented and made open from 13.5.2003. Each employee will
undergo 3 to 5 days Training each year under ENMASS knowledge updating programme,
wherein Training on attitudinal change is the foremost objective. A total of over 70,000
employees have been benefited under ENMASS and regular programme upto 2007-08
Regarding training programme on “ Positive Attitudinal Changes for Distribution AEs”
trainings were imparted for 300 AEs in 2008-09, also National level training programme
for class C & D employees (in Tamil Nadu Electricity Board class III & IV employees)
funded by CIRE/REC is proposed to impart training at 12 nos. Institutions / Centres
for a minimum of 3600 employees from April 2009 to March 2010 (for which MOU
has been signed between Tamil Nadu Electricity Board and CIRE/REC on 2.4.2009.)
7.2.4 IMPLEMENTATION OF APDRP SCHEMES:
TNEB has implemented APDRP programs in five EDCs viz. Coimbatore South,
Pudukottai, Villupuram, Chengalpattu and Udumalpet, Chennai Metropolitan area
covering four EDCs of Chennai and 19 towns in Coimbatore Metro, Salem, Erode,
Tirunelveli, Madurai Metro, Trichy Metro, Kancheepuram, Mettur and Cuddalore EDCs
to improve the consumer satisfaction by establishing quality, reliable and stable power
supply by carrying out system improvement works such as
• Establishment of new substations
• Erection of new distribution transformers
• Strengthening of existing lines
• Implementing the computerized billing for LT consumers to reduce the payment
time.
80
Table 6 Status of X plan APDRP schemes
Sl.
No
Name of the work To be achieved as per
scheme
Achieved up to 31.3.2009
Physical Financial Physic
al
Financial % financial
to scheme
cost
Rs. in lakhs Rs. in lakhs
Balance
to be
achieved
1 2 3 4 5 6 7
1 Feeder Meters 1749 322.979 1747 215.655 66.770595
2 Distribution Transformers
Meters
6124 988.044 6665 832.884 84.296246
3 Consumers Meters single
phase
780732 7572.304 780763 6100.213 80.559536
4 Consumers Meters Three
phase
86254 3282.022 86354 3036.75 92.526802
5 Renovation of
distribution Transformer
16524 829.69 16068 612.212 73.788041
6 LT capacitors at
distribution Transformer
44074 2439.448 43162 2272.882 93.17198
7 HT Capacitor Banks 43 1025.298 13 428.86 41.827839
8 Data Logging in
Substation
272 5173.51 7 76.77 1.4839055
9 Improvement in service
connections
78813 1131.076 78784 444.642 39.311417
10 Replacement of old
equipments in substation
623 1923.857 151 920.715 47.857767
11 Computerised LT Billing 406 4526.962 586 4308.266 95.169034
12 Enhancement of power
transformer capacity
71 3853.889 68 4073.654 100
13 Establishment of new
substations
72 29228.74 94 27874.844 95.367929
14 Provision of additional
distribution transformers
5734 16128.832 5762 15535.061 95.20256
15 Reconducting of lines 6444 11282.81 6214.4
33
10220.511 90.584801
16 Sectionalising of feeders 13 286.89 313.44
2
579.15 100
17 Consumer Indexing 1099170 109.907 117184
6
167.5306 100
18 Additional link lines and
missing link lines
1743 4847.861 699.88
9
1033.556 21.319836
19 Sub Station R&M 403 1959.8903
20 Call Centre(IT Enabling) 33 100.91
21 New UG Cable 269.41 2956.92
Total 94954.119 83571.875
9
X plan
APDRP
schemes
are
closed
81
7.2.5 REPLACEMENT OF METERS
TNEB has effective system for replacement of the defective meters. The Board has an
action plan for speedy replacement of defective meters.
7.2.6 DEMAND SIDE MANAGEMENT
Demand Side Management Activities:
• All heads of the Departments were addressed to implement Demand Side
Management measures in Government Buildings. Superintending
Engineer/Electrical/Buildings/PWD wing was appointed as the nodal officer
for co-ordination for Demand Side Management activities, as Government
Buildings are maintained by PWD wing.
• All Chief Engineers/TNEB were addressed to implement DSM measures in
TNEB buildings. In the 1st phase, all conventional chokes are to be changed.
• A circular to implement DSM measures in the design stage of building was
communicated to the field.
• Deputy Commissioner/Works, Chennai Corporation was addressed to
implement DSM measures in streetlights. The following measures are taken
up for implementation for street lighting: (a) Installation of dusk to dawn
switches (b) switching of one-side street lights wherever feasible (c)
Installation of capacitors (d) Introduction of electronic chokes in place of
conventional electromagnetic chokes.
• Managing Director/Chennai Metro Water was addressed to shift certain loads
to off peak hours. Accordingly, the following measures are taken up:
o Energy audit was conducted for Kilpauk water works and modernization
programme at a cost of Rs.20 core has been completed.
o Switching of 2 MVA load to off peak hours under examination.
• Demand Side Management Committee meetings under the Chairmanship of
M (D) were conducted regularly and CEs/Distribution were directed to
implement the Demand Side Management activities.
• Nodal officers were appointed for each region / distribution circle to evolve,
implement & Co-ordinate Demand Side Management activities.
82
Proposed Demand Side Management activities during 2009 –10
� Convening regular meeting with SE/PWD ( Electrical ). Nodal Officer for
Government Buildings for Energy Conservation activities.
� Convening regular meeting with Chennai Corporation Nodal Officer for evolving
& implementing Demand Side Management measures in Chennai Corporation
Streetlights.
� Convening regular meeting with Chennai Metro Water Officials for evolving &
implementing Demand Side Management measures in Water Pumping.
� Evolving & implementing Demand Side Management measures in domestic,
Commercial, Agricultural and Industrial sectors.
� Conducting quarterly monitoring committee meeting to review the progress of
Energy Conservation in Government offices and buildings .
83
8 Determination of the annual revenue requirement
8.2 Estimates of Operating Expenses
8.2.3 EMPLOYEE EXPENSES
Projection of employee costs takes into account employee age and salary profile of
TNEB. Terminal benefits include lump sum payment towards commutation of pension. It
further includes contribution towards provident funds (PF), earned leave encashment,
pension and gratuity. PF is funded through a separate fund. Terminal benefits have been
growing over the past 5 years. Thus terminal benefits expenses are estimated to show an
increasing trend over the years.
Table 1 Break-up of employee costs (Figures in Rs Crores)
Particulars 2004-09
(Average
for 5 years)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Employee costs 1269.45 1623.64 1835.78 1909.21 1985.58
Medical expenses 4.60 3.31 3.44 3.58 3.72
LTC 1.01 1.45 1.51 1.57 1.63
Payment under Workmen's
compensation
0.09 0.47 0.49 0.51 0.53
Staff Welfare (including
contribution to CPS)
7.87 14.42 15.00 15.60 16.22
Terminal benefits 756.46 1061.38 1209.98 1258.37 1308.71
Earned Leave Encashment 107.53 125.15 130.18 135.36 140.78
Commissioning Golden jubilee
incentiy (2007-08 to 2008-09)
4.49 - - - -
Gross Employee Cost 2151.50 2829.82 3196.35 3324.20 3457.17
Less: Capitalisation 200.20 249.54 287.67 299.18 311.15
Net Employee Cost 1951.31 2580.28 2908.68 3025.02 3146.02
Employee cost per unit of
energy sold (in paise)
45.51 47.88 46.11 44.42
84
There are fresh recruitment required to fill up the vacancies arises due to retirements. The
number of employees has decreased over the last years and judicious replacements are
required to maintain the operational efficiency. With some new recruitments assumed for
the ensuing years, employee wages would show a marginal to moderate increase.
The Board also incurs expenses for the employees for the terminal benefits in the form of
Pension, Gratuity and Provident Fund. It creates a provision of 3.742% of the basic salary
and dearness allowance during every financial year as reserve towards this account.
However the reserve so created is insufficient to meet the actual expenditure, hence
Board has assessed the actual commitment on account of pension and gratuity.
8.2.4 ADMINISTRATION AND GENERAL EXPENSES
Administration expenses mainly comprises of rents, telephones and other communication
expenses, professional charges, conveyance, traveling etc.
Table 2 Administration and General Expenses (Rs. Crores)
Particulars 2004-09
(Average
for 5 years)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Rents, rates & taxes 12.10 16.53 17.19 17.88 18.59
Insurance 51.57 50.19 52.20 54.29 56.46
Telephones/Postage etc 9.22 14.64 15.23 15.83 16.47
Legal, audit and consultancy charges 11.80 11.19 11.64 12.10 12.59
Conveyance and traveling 36.86 48.18 50.09 52.09 54.17
Miscellaneous expenses (includes FBT) 70.32 77.08 80.16 83.37 86.70
Freight 8.62 2.89 3.01 3.13 3.25
Other purchase related expenses 10.32 31.75 33.02 34.34 35.71
Total expenses 210.82 252.43 262.53 273.03 283.95
Less: Capitalisation 26.64 34.62 34.13 35.49 36.91
Net expenses 184.18 217.81 228.40 237.53 247.04
Percentage of Admn. General Exp. on
the units of electricity sold
3.84 3.76 3.62 3.49
8.2.5 REPAIRS AND MAINTENANCE
Repairs and maintenance (R&M) expenses are a function of the assets of the utility. The
R&M cost for 2009-10 is at around Rs 313.73 Crores, which works out to around 1.25%
of the Gross Fixed Assets at the beginning of the year.
85
A major component of the total R&M expenses is incurred towards maintenance of
generating stations of the Board.. R&M expenditure of Rs. 326.67 Crores is projected
during the ensuing financial year.
Table 3 Repair and Maintenance expenses (figures in Rs. Crores)
Particulars 2004-09
(Average
for 5 years)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Plant & Machinery 216.10 251.88 261.98 272.43 283.33
Buildings 3.37 1.97 2.05 2.13 2.22
Civil Works 12.38 10.68 11.11 11.55 12.01
Hydraulic Works 8.55 8.48 8.82 9.17 9.54
Lines, Cables & Networks etc. 36.51 39.48 41.06 42.70 44.41
Vehicles 3.39 3.21 3.34 3.47 3.61
Furniture & Fixtures 0.04 0.18 0.19 0.19 0.20
Office Equipments 1.84 1.30 1.35 1.41 1.48
Total expenses 282.18 317.18 329.87 343.06 356.78
Less: capitalisation 2.86 3.45 3.30 3.43 3.57
Net R&M expenses 279.32 313.73 326.67 339.63 353.22
The repair & maintenance expenses as a percentage of Gross Fixed Assets are given
below:-
Table 4 R&M expenses as a % of GFA (Figures in Rs crores)
Particulars
2004-09
(Average
for 5
years)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Opening Balance of Gross Fixed
Assets 19851.57 25016.17 27188.26 29368.49 31556.92
R&M Expenses 279.32 313.73 326.57 339.63 353.22
R&M Expenses as a %age of GFA 1.41 % 1.25 % 1.20 % 1.16% 1.12 %
Table 5 O&M expenses as a % of GFA (Figures in Rs crores)
Particulars
2004-09
(Average
for 5
years)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Net Repair & Maintenance Expenses. 279.32 313.73 326.57 339.63 353.22
Net Employees Cost. 1948.62 2580.28 2908.68 3025.03 3146.02
Net Admn.& General Expenses. 184.18 217.81 228.40 237.53 247.04
Total Operation and Maintenance
expenses. 2412.12 3111.82 3463.64 3602.19 3746.28
Operation and Maintenance expenses
per unit of energy sold. 0.50 0.54 0,57 0.54 0.53
Percentage on GFA. 0.12 0.12 0.13 0.12 0.12
86
8.2.6 PROVISION FOR BAD DEBTS
A fixed percentage of dues from consumers shall be maintained as a provision for
meeting bad debts. TNEB has healthy collection levels from its consumers and hence the
levels of provisioning required are not high.
8.2.7 OTHER DEBITS
The miscellaneous expenses on account of Research & Development expenses, sundry
expenses, and miscellaneous losses and write-off have been included under the cost head
other debits.
Table 6 Other debits (Figures in Rs Crores)
Particulars 2007-08
(previous
year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Material cost variance 105.81 80.22 22.33 22.33 22.33 22.33
Research & development
expenses
0.01 0.09 0.02 0.02 0.02 0.02
Bed & Doubtful debts
written off
7.00 0.14 0.20 0.20 0.20 0.20
Miscellaneous losses and
write off
7.62 4.43 6.68 6.68 6.68 6.68
Sundry Expenses 1.35 1.28 0.01 0.01 0.01 0.01
Extra Ordinary debits 0.02 1.99 0.02 0.02 0.02 0.02
Hydro Balancing Fund 410.14 134.52 141.82 129.22 129.22 129.22
Total 531.96 222.69 171.08 158.48 158.48 158.48
Less Capitalisation 8.43 80.25 19.07 19.07 20.02 21.02
Net expenses 523.54 142.42 152.01 139.41 138.46 137.46
8.3 Capital Related Expenses
The capital related expenses are derived from the assets of the Board and the funding of
the same. Accordingly, the additions to fixed assets, and the borrowing program of the
Board are discussed first, and the expenses chargeable to the revenue account are
discussed subsequently.
8.3.3 FIXED ASSETS
The gross and the net fixed assets of the Board during the financial year 2008-09 is
indicated in the table below:
87
Table 7 Asset Position as on 31st March’09 (Figures in Rs Crores)
Assets Group
Gross Fixed
Assets (Opening
Bal)
Additions Deductions Gross Fixed Assets
(Closing Bal)
Land and Land Rights 259.07 18.01 4.50 272.58
Building 947.29 57.80 23.02 982.07
Hydraulic works 893.06 63.35 15.73 940.68
Other Civil works 773.55 45.89 12.52 806.93
Plant & Machinery 10940.94 797.30 211.80 11526.44
Lines & Cable work 8466.81 1047.35 348.45 9165.70
Vehicles 64.10 3.15 2.32 64.92
Furniture & Fixtures 49.52 2.20 1.10 50.63
Office Equipment 99.21 17.61 1.93 114.89
Capital Expenditure resulting in asset not
belonging to Board 11.3445 11.3445
Spare Units 2.20 0.88 1.32
Capital spares 987.05 111.31 29.12 1069.24
Assets taken over from licensee 9.41 9.41
Leased Assets 0.01 0.01
Capital expenditure in progress 3008.37 4032.78
Total (excl leased assets) 26511.93 2163.98 651.37 29048.95
The Board has completed a massive capital expenditure plan, which has resulted in the
addition in gross fixed assets of nearly Rs 2163.98.Crore during FY 2008-09.
8.3.4 CAPITAL EXPENDITURE
TNEB is undertaking several major works for augmentation of its transmission and
distribution network. The investment is a part of the efforts of the Board to provide
efficient and reliable electricity to its consumers. The details for the financial years 2010-
11 have been elaborated below.
88
Table 8 Details of capital works (Figures in Rs Crores)
Particulars 2010-11
A) Generation schemes
Hydro & Thermal & Gas 192.42
B) Renovation and Modernisation 3592.00
Hydro 28.08
Thermal 167.76
Gen spares 200.00
C) Transmission 1720.00
D) Distribution 771.59
Interest During Construction Period 533.89
Total Capital Investment Plan 7205.74
8.3.5 DEPRECIATION
The depreciation is to be charged on the basis of the Straight-line method on the fixed
assets in use at the beginning of the year.
As per the books of accounts of the Board the cumulative depreciation upto the year
2008-09 amounts to Rs 10174.77 Crs. The completed works has been transferred to the
respective fixed asset accounts on the basis of completion certificate issued by the
concerned departments.
The cumulative depreciation upto the current year 2009-10 works out to Rs.11167.25
Crores and for the ensuing year works out to Rs.12253.62 Crores
Table 9 Details of depreciation (Figures in Rs Crores)
Assets Group 2007-08
(previous year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Depreciation (Gross) 9400.34 10174.77 11167.25 12253.62 13493.42 14747.28
8.3.6 INTEREST
The board is funding its capital expenditure through long-term borrowings from external
sources. During FY 2008-09 the borrowing from external sources was of the order of Rs
1574.55 Cr and during FY 2009-10 the same is estimated to be Rs 2890.84 Cr. The
borrowing for FY 2010-11 is estimated at Rs 3176.52Cr.
The Board is also borrowing from external sources to finance the revenue deficits
incurred during the financial year.
89
The Board has initiated steps to negotiate with the institutions/banks to lower the interest
rate of its borrowing currently ranging from 8.5% -13.2%
8.3.7 RETURN ON NET FIXED ASSETS
A reasonable return of 3% on the net fixed assets at the beginning of the year is given
below
Table 10 Computation of Return (figures in Rs. Crores)
Particulars FY 2007-08
( Audited )
FY 2008-09
( preliminary )
FY 2009-10
(Current year)
Gross block at the beginning of the year (excluding leased
assets) 21563.53
23503.56 25016.17
Less : Accumulated depreciation at the beginning of the
year 8733.94
9400.34 10174.77
Net Block 12829.58 14103.22 14841.40
Consumer contribution 2599.47 3038.84 3258.60
Capital Base 10230.11 11064.38 11582.80
Return on Net Fixed assets @ 3% of Value of fixed
assets 306.90 331.93 347.48
8.4 Note on Income Tax The Income Tax Returns up to Assessment Year (A.Y.) 2009-10 (Financial Year 2008-
2009) have been filed showing a NIL taxable business income.
8.5 Aggregate Revenue Requirement (ARR)
Based on the foregoing discussion the following are the details of the Aggregate Revenue
Requirement for the previous current and ensuing year.
Table 11 Annual Revenue Requirement (figures in Rs. Crores)
Particulars 2009-10
(current year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Power purchase 15774.39 16527.84 15141.12 16440.10
Fuel cost 4265.89 4723.40 5998.30 6829.55
Operation & Maintenance 3111.82 3463.64 3602.19 3746.28
Depreciation 992.49 1086.36 1189.81 1303.86
Interest 3058.40 3464.99 4032.05 4571.16
Prior period expenses/ (income) 0 0 0 0
Other debits 152.01 139.41
138.46 137.46
Provision for Income Tax 0 0 0 0
Return on Equity 347.48 378.25 412.23 449.80
Total 27702.48 29783.89 30514.16 33478.22
90
9. REVENUE SUBSIDIES
Hon'ble Tamil Nadu Electricity Regulatory Commission vide its Tariff
Order dated 15.3.2003 has notified the tariff applicable to all categories of consumers.
i. The Government of Tamil Nadu (GOTN) have issued a policy direction
to Hon’ble Tamil Nadu Electricity Regulatory Commission to extend free
supply/Reduction in tariff rates to certain categories of consumers under Section 108 and
65 of the Electricity Act, 2003 as detailed below:
Sl.No. Details. With effect from
1. Reduction in Tariff rates to
Domestic consumers.
16.4.2004.
2. Free supply to Agricultural
consumers (Normal)
1.4.2004.
3. Free supply to Agricultural
consumers (SFS)
1.4.2006
4. Free supply to Hut. 1.4.2004.
5. Reduction in Tariff rates to places of
worship.
1.1.2006.
6. Reduction in Tariff rates to Power
Loom.
1.2.2006
7. Free supply upto 500 units bi-
monthly to Power Loom.
1.08.2006
8. Free supply of 100 units bi-monthly
to Hand Loom
1.8.2006
9. Reduction in Tariff rates to Street
light & OHT
12.4.2007.
91
ii. The tariff rate as per Hon'ble Tamil Nadu Electricity Regulatory Commission
(TNERC) Tariff Order dt 15.3.2003 and as per policy direction of Government of Tamil
Nadu are furnished below:
Agricultural consumers.
Description Rate as per TNERC T.O. dt
15.3.2003 in Rs.
Rate as per policy directive
of GOTN
Agricultural consumers Rs.250 HP/Annum Free supply
Hut consumers.
Description Rate as per TNERC T.O. dt
15.3.2003. in Rs.
Rate as per policy directive
of GOTN in Rs.
Hut Consumers (Normal) Rs.10/Month/Service Free supply
Domestic consumers .
Rate as per policy directive of GOTN
Paise per unit
Bi-Monthly Slab
details
Rate as per TNERC T.O. dt
15.3.2003. Paise per unit
Below 100 units Above 100 units
0-50 units 110 65 75
51-100 units 130 75 85
101-200 units 260 150
201-600 units 350 220
Above 600 units 475 305
Places of Worship:
Bi-Monthly Slab details Rate as per TNERC T.O. dt
15.3.2003. Paise per unit
Rate as per policy directive
of GOTN Paise per unit
0.-120 units 300 150
Above Units 300 300
Power Loom Weavers: (Reduction)
Bi-Monthly Slab details Rate as per TNERC T.O. dt
15.3.2003. Paise per unit
Rate as per policy directive
of Government of Tamil
Nadu Paise per unit
0-500 units 140 100
501-1000 units 100
1001-1500 units
225 225
Above 1501 250 250
92
Local bodies:
Categorisation Rate as per TNERC T.O. dt
15.3.2003.
Paise per unit
Rate as per policy
directive of GOTN
Paise per unit
Village Panchayats 340 300
Town Panchayats 340 330
Municipalities and
Corporations
350 330
Power Loom Weavers: (Free)
Bi-Monthly Slab details Rate as per TNERC T.O. dt
10.2.2006.
Paise per unit
Rate as per policy
directive of GOTN
Paise per unit
0-500 units Free Supply
501-1000 units
100 100
1001-1500 units 225 225
Above 1501 250 250
Hand Loom Weavers: (Free)
Bi-Monthly Slab
details
Rate as per TNERC T.O. dt
15.3.2003.
Paise per unit
Rate as per policy directive of GOTN
Paise per unit
0-50 units 110
51-100 units 130
Free
101-200 units 260 150
201-600 units 350 220
Above 600 units 475 305
93
iii. The Hon’ble Commission has approved the proposal of the Government and
ordered that the following amounts may be paid to Tamil Nadu Electricity Board in
advance towards subsidy for the above categories from the year 2004-05, onwards.
Categories 2004-05
(Rs. in
Crs.)
2005-06
(Rs. in
Crs.
2006-07
(Rs. in
Crs.)
2007-08
(Rs. in
Crs.)
2008-09
(Rs. in
Crs.)
2009-10
(Rs. in
Crs.)
Domestic 739.53 955.81 1031.57 1073.95 1181.35 1269.56
Agricultural
(Normal)
200.85 201.18 203.96 205.97 209.63 210.00
Agricultural
(SFS)
- - 39.89 43.82 45.17 53.00
Hut
11.78 12.25 12.58 13.37 13.48 15.00
Places of
Worship:
0.91 3.64 3.82 5.62 5.95
Power
Loom
(Reduction)
5.12 27.39 32.56 30.78 32.62
Power
Loom (Free)
16.31 24.86 27.50 29.15
Hand Loom 5.80 16.80 8.40 5.40
Local
Bodies
44.44 48.58 51.49
iv. The Government of Tamil Nadu has also released the above subsidy upto 2008-09
and being released for the year 2009-10.
94
10 Total Revenue Requirement and Need for tariff increase
10.1 Revenue from non tariff income and other income:
In addition to the revenue from sale of power, TNEB also recovers additional revenue
through miscellaneous services and charges approved in the last tariff order. Based on the
estimate available for FY 2009-10, TNEB is collecting and expects to collect Rs.912.66
Crores as non-tariff and other income. During FY 2010-11, FY 2011-12, FY 2012-13 a
sum of Rs.1034.32 Crores, 1177.55 Crores, 1350.70 Crores, respectively is expected to
be collected as a part of the non-tariff and other income.
Table 1 Details of non-tariff income (figures in Rs. Crores)
Particulars
2007-08
(Previous
year
audited))
2008-09
(previous
year
preliminary)
2009-10
(current
year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Interest on staff loans and
advances 6.21 6.09 6.39 6.71 7.05
7.40
Income from investments 0.95 0.91 0.96
1.01
1.06 1.11
Belated payment surcharges
collected 24.83 19.31 20.28 21.29 22.36 23.47
Interest on advances to
Suppliers/Contractors 1.89 0.22 0.23 0.24 0.26 0.27
Interest from banks 11.19 0.0043 0.0045 0.0047 0.0050 0.005
Income from sale of tender
forms, stores, scrapes etc., 46.86 32.77 34.41 36.13 37.93 39.83
Rebate on power purchase
bills 192.86 235.51 247.29 259.66 270.04 280.84
Income from hiring vehicles
to employees and other staff
welfare
0.11 0.10 0.11 0.11 0.12 0.13
Miscellaneous Receipts 93.66 88.35 92.77 97.41 102.28 107.40
Sub- Total 378.56 383.28 402.45 422.57 441.10 460.46
Non-Tariff Revenue 297.51 390.93 510.21 611.75 736.45 890.24
Total 676.07 774.21 912.66 1034.32 1177.55 1350.70
95
10.2. Revenue from existing and proposed tariffs
The table below describes the existing and proposed revenue from tariffs for the financial
years 2010-11
A. Revenue from existing & proposed tariff from HT consumers (figures in
Rs.Crores)
Consumer categories
Units
In
MU
Revenue
from
existing
tariff
2010-11
(Rs Crores)
Revenue from
proposed tariffs
2010-11
(Rs Crores)
I-A Industries including railway
traction 17942 7956.43 8663.26
II-A Recognised Educational
Institution etc 998 445.89 486.62
II-B Places of Public Worship,
Religious Mutts etc. 4 1.28 1.28
III Commercial 1671 1066.29 1192.80
IV Lift Irrigation Societies 12 0.64 0.64
V Supply to Pondicherry 445 142.65 142.65
VI Supply to other states - -
Total 21072 9613.18 10487.25
B Revenue from existing & proposed tariff from LT consumers (figures in Rs.
Crores)
Consumer Categories
Units
In
MU
Revenue
from
existing
tariff Fy –
2010-11
Revenue from
proposed tariffs
2010-11
(Rs Crores)
IA Domestic 14524 3612.03 4029.98
IB Huts 229 17.92 17.92
IC Defense colonies etc 4 1.47 2.15
IIA Public Lighting/ Water Supply 1077 398.49 398.49
IIB Recognised Educational Institution etc 471 211.20 215.05
IIC Places of Public Worship, Etc 78 24.09 24.09
IIIA(I) 1.Cottage/TinyIndustries 416 105.55 110.36
III A(2) 2.PowerLooms 749 181.25 181.25
IIIB Industries 4912 2195.26 2458.10
IV Agricultural Government Seed Firm 12870 276.69 276.69
V Commercial 4329 2555.84 2913.03
VI Temporary Supply and lavish 19 13.80 20.61
Total 39679 9593.59 10647.72
96
Revenue from existing and proposed tariffs
The table below describes the existing and proposed revenue from tariffs for the financial
year 2011-12
A. Revenue from existing & proposed tariff from HT consumers (figures in
Rs.Crores)
Consumer categories Units
In MU
Revenue
from
existing
tariff
2011-12
(Rs Crores)
Revenue from
proposed tariffs
2011-12
(Rs Crores)
I-A Industries including railway
traction 19438 8619.56 9385.54
II-A Recognised Educational
Institution etc 1064 475.58 518.83
II-B Places of Public Worship,
Religious Mutts etc. 4 1.28 1.28
III Commercial 1844 1176.69 1316.30
IV Lift Irrigation Societies 14 0.70 0.70
V Supply to Pondicherry 471 151.15 151.15
VI Supply to other states - - -
Total 22835 10424.96 11373.80
B. Revenue from existing & proposed tariff from LT consumers (figures in Rs.
Crores)
Consumer Categories
Units
In
MU
Revenue
from
existing
tariff Fy –
2011-12
Revenue from
proposed tariffs
2011-12
(Rs Crores)
IA Domestic 15578 3829.24 4320.46
IB Huts 243 19.00 19.00
IC Defense colonies etc 5 1.85 2.68
IIA Public Lighting/ Water Supply 1111 411.07 411.07
IIB Recognised Educational Institution etc 620 278.26 285.74
IIC Places of Public Worship, Etc 83 25.77 25.77
IIIA(I) 1.Cottage/TinyIndustries 610 154.82 161.07
III A(2) 2.PowerLooms 779 189.30 189.30
IIIB Industries 4902 2190.97 2453.39
IV Agricultural Government Seed Firm 14116 282.35 282.35
V Commercial 4695 2771.90 3155.95
VI Temporary Supply and Lavish 33 23.56 35.79
Total 42775 10178.09 11342.58
97
Revenue from existing and proposed tariffs
The table below describes the existing and proposed revenue from tariffs for the financial
years 2012-13
Consumer categories Units
In MU
Revenue
from
existing
tariff
2012-13
(Rs Crores)
Revenue from
proposed tariffs
2012-13
(Rs Crores)
I-A Industries including railway
traction 21058 9337.96 10167.76
II-A Recognised Educational
Institution etc 1135 507.25 553.44
II-B Places of Public Worship,
Religious Mutts etc. 4 1.28 1.28
III Commercial 2034 1298.50 1452.04
IV Lift Irrigation Societies 15 0.76 0.76
V Supply to Pondicherry 499 160.15 160.15
VI Supply to other states 455 227.25 227.25
Total 25200 11533.15 12562.68
B. Revenue from existing & proposed tariff from LT consumers (figures in Rs.
Crores)
Consumer Categories
Units
In
MU
Revenue
from
existing
tariff Fy –
2012-13
Revenue from
proposed tariffs
2012-13
(Rs Crores)
IA Domestic 16309 4059.74 4523.48
IB Huts 258 20.13 20.13
IC Defense colonies etc 6 2.22 3.22
IIA Public Lighting/ Water Supply 1147 424.39 424.39
IIB Recognised Educational Institution etc 817 366.61 375.68
IIC Places of Public Worship, Etc 88 27.32 27.32
IIIA(I) 1.Cottage/TinyIndustries 895 227.09 235.53
III A (2) 2.PowerLooms 811 197.88 197.88
IIIB Industries 4893 2186.60 2449.10
IV Agricultural Government Seed Firm 15245 292.91 292.91
V Commercial 5092 3006.24 3419.31
VI Temporary Supply, Lavish Illumination 56 40.24 60.73
Total 45617 10851.37 12029.69
98
10.4Computation of net revenue requirement
After accounting for all the operational expenses and all the revenue sources the Board
would be left with an estimated deficit of Rs 9417.80 Cr if the currently applicable tariffs
are not revised during the year 2010-11
Table 9 Net Revenue Requirement (figures in Rs. Crores)
Particulars 2007-08
(Previous
year audited)
2008-09
(previous
year
preliminary)
2009-10
(current year)
2010-11
(estimated)
2011-12
(estimated)
2012-13
(estimated)
Total operating
expenses 21327.41 25001.32 27702.48 29783.89 30514.16 33478.22
Less :
Revenue from Non
Tariff Income
297.51 390.93 510.21 611.75 736.45 890.24
other income 378.56 383.28 402.45 422.57 441.10 460.46
Revenue subsidies 1457.02 1831.61 1797.17 1868.77 1945.94 2031.53
Net Revenue
Requirement
19194.32 22395.50 24992.65 26880.80 27390.67 30095.99
Revenue billed from
the Existing tariffs of
TNEB
15375.34 14931.65 16254.78 17463.00 18782.11 20477.99
Deficit without
tariff revision
3818.98 7463.85 8737.87 9417.80 8608.56 9618.01
Additional revenue
from the proposed
tariffs
- - - 1928.20 2113.33 2207.85
Deficit at the end of
financial year
3818.98 7463.85 8737.87 7489.60 6495.23 7410.16
99
11 Proposal for Revision of rates
11.1 Existing and proposed tariff for High Tension consumers
11.1.1 HIGH TENSION SUPPLY
General Provisions Applicable for High Tension Supply:-
(i) Any High Tension Supply involving a sanctioned demand above 5000 KVA
to 10000 KVA plus two per cent marginal adjustment shall be given supply
only at 33 KV if available in the area or at EHT voltage;
(ii) Any High Tension Supply involving a sanctioned demand above 10000 KVA
plus two per cent marginal adjustment shall be given supply only at 110 KV
or 230 KV at mutually agreed voltage.
(iii) In the case of existing High Tension consumers whose sanctioned demand
exceeds 5000 KVA and who do not avail themselves of supply at the voltage
indicated in item (i) within the stipulated period they shall be charged an extra
levy of 10 paise per KWH over and above the normal tariff for the entire
energy consumed. This extra levy is applicable to all categories of HT
consumers till they avail supply at the specified voltage.
(iv) Power Factor/Low Factor Surcharge: In respect of High Tension service
connections the average power factor of the consumers installation shall not
be less than 0.90
Where the average power factor of High Tension service connection is less than the
stipulated limit of 0.90 the following compensation charges will be levied.
Below 0.90 and up to 0.85 One per cent of the current consumption
charges for every reduction of 0.01 in
power factor from 0.90
Below 0.85 to 0.75 One and half per cent of the current
consumption charges for every reduction of
0.01 in power factor from 0.90
Below 0.75 Two per cent of the current consumption
charges for every reduction of 0.01 in
power factor from 0.90
(v) Incentive for High Power Factor: Wherever the power factor of HT services
exceeds above 0.95, a Power Factor rebate at 0.5% of the amount of current
consumption charges for every increase of 0.01 in PF above 0.95 shall be
allowed.
Note: Current consumption charge include the charges of recorded demand and the
energy charges at notified tariff rate excluding concessions, if any
100
(vi) Billable Demand: In case of two part tariffs, maximum Demand Charges for
any month will be levied on the KVA demand actually recorded in that month
or 90% of the sanctioned demand which ever is higher. Provided that
whenever the restriction and control measures are in force, the billable
demand in case of two part tariff for any month will be the actual recorded
maximum demand or 90% of demand quota, as fixed from time to time
through restriction and control measures, whichever is higher.”
(vii) In the case of supply under HT Tariff IA,IIA, and III, the use of electricity for
bonafide purpose of lighting, heating and power loads in the residential
quarters within the premises shall be metered separately by the consumers
taking HT supply and paid to the Board at LT Tariff IC. The units shall be
deducted from the total number of units registered in the main meter of HT
supply for billing purposes.
11.1.2 HIGH TENSION TARIFF I: (HT TARIFF IA MAY BE NAMED AS HT TARIFF I)
Comparison of existing and proposed tariffs for HT – I
Existing tariff Proposed tariff Tariff category
Demand Charge in Rs/KVA/ month
Energy charge in Paise per kWHr (unit)
Demand Charge in Rs/KVA/ month
Energy charge in Paise per kWHr (unit)
High Tension Tariff I
300 350 300 400
(i) This tariff is applicable to all industrial establishments and Registered factories which includes Tea Estates, Textiles, Fertilizers, Salem Steel Plant, Heavy Water Plant, Chemical plant, Software Industries including Maintenance, Service and Training Institutions and Hardware units , common effluent treatment plant, Cold storage units and Railway Traction.
(ii) New High Tension Industries set up from now on shall not be eligible for any tariff concession such as night shift concession etc., except as otherwise specified by the Commission. However, the existing industrial units that are already enjoying the concession will continue to avail of the concession till the completion of the existing tariff concession period.
(iii) If a consumer availing himself of High Tension Supply under this tariff does not for any reason utilise the power load for more than thirty days, then the current consumption charges for the power utilised in the service for lighting and non-industrial purpose shall be billed under High Tension Tariff III, that is energy as well as demand charges.
(iv) The HT Industrial consumers (HT IA) shall be billed at 20% extra on the energy charges for the energy recorded during peak hours. The duration of peak hours shall be 6.00 A.M to 9.00 A.M and 6.00 P.M to 9.00 P.M.
(v) The HT Industrial Consumers (HT I A) shall be allowed a reduction of 5% on the energy charges for the consumption during 2200 to 0500 hrs as an incentive for night consumption. This concession shall however be not applicable to those industries, which are availing night shift concession, until the tariff concession period is over.
101
(vi) The consumption of electrical energy by the HT Industrial Consumers under HT IA having Arc furnaces will be charged an additional energy charge of 15% on the HT IA tariff.
(vii) High Tension Industries under Tariff I-A having arc induction furnaces or steel rolling process the integration period for arriving the maximum demand in a month will be adopted fifteen minutes.
(viii) If the HT consumer under this category needs to extend LT supply within their area of operation for any commercial purposes, they have to inform TNEB suitably and meter such consumption separately and pay at the appropriate LT Commercial Tariff.
(ix) The Railways under HT IA are exempted from the levy of extra charges @ 20% on the energy recorded during peak hours between 6.00AM and 9.00 AM and 6.00 PM to 9.00 PM. Incentive of 5% on the energy charges for night consumption during 22 hours to 0500 hours stands withdrawn for Railways.
11.1.3 HIGH TENSION TARIFF II-A
Comparison of existing and proposed tariffs for HT II-A
Existing tariff Proposed tariff Tariff
Category Demand Charge in Rs/KVA/ month
Energy charge in Paise per kWHr (unit)
Demand Charge in Rs/KVA/ month
Energy charge in Paise per kWHr (unit)
HT Tariff IIA 200 350 200 420
(i) The tariff is applicable to recognised educational institutions, Hostels run by recognised educational institutions, Government Hospitals, Hospitals under the control of Panchayat Unions, Municipalities or Corporations, Veterinary Hospitals, Leprosy Sub-Centres, Primary Health Centres. Health Sub-Centres, Orphanages, Public Libraries, Water works, Public Lighting, Public Sewerage Works by Government/local Bodies, Public Water Supply by New Tirupur Area Development Corporation, Electric crematorium by local bodies, Laboratories, Research institutions, Studios, Cinema Theatres, Ministry of defence and Avadi CRPF establishment, Desalination plant at Kodankulam Nuclear power plant and such other Institutions declared by the Tamil Nadu Electricity Regulatory Commission from time to time.
(ii) If the HT consumer under this category needs to extend LT supply within their area of operation for any commercial purposes, they have to inform TNEB suitably and separately meter such consumption and pay at the applicable LT Commercial tariff.
11.1.4 HIGH TENSION TARIFF II-B
Comparison of existing and proposed tariffs for HT II-B
Existing tariff Proposed tariff Tariff Category
Demand Charge in Rs/KVA/ month
Energy charge in Paise per kWHr (unit)
Demand Charge in Rs/KVA/ month
Energy charge in Paise per kWHr (unit)
HT Tariff IIB 125 280 125 280
This tariff is applicable to actual places of public worship and specially notified places of
public interest, mutts, religious institutions etc., declared by the Commission from time to
time.
102
If the HT consumer under this category needs to extend LT supply within their area of
operation for any commercial purposes, they have to inform TNEB suitably and
separately meter such consumption and pay at the applicable LT commercial tariff.
11.1.5 HIGH TENSION TARIFF III
Comparison of existing and proposed tariffs for HT III
Existing tariff Proposed tariff Tariff Category
Demand Charge in Rs/KVA/ month
Energy charge in Paise per kWHr (unit)
Demand Charge in Rs/KVA/ month
Energy charge in Paise per kWHr (unit)
HT Tariff III 300 500 300 580
This tariff is applicable to all Commercial Establishments and other categories of consumers not covered under High Tension Tariff I, IIA, IIB, IV and V.
Industries requiring HT supply during construction period shall be charged under this tariff.
11.1.6 HIGH TENSION TARIFF IV
Comparison of existing and proposed tariffs for HT IV
Existing tariff Proposed tariff Tariff Category
Demand Charge in Rs/KVA/ month
Energy charge in Paise per kWHr (unit)
Demand Charge in Rs/KVA/ month
Energy charge in Paise per kWHr (unit)
HT Tariff IV Nil 50 Nil 50
This tariff is applicable to the Lift Irrigation Societies for Agriculture which are registered with the Registrar of Co-operative Societies or under any other Act.
11.1.7 HIGH TENSION TARIFF V
Comparison of existing and proposed tariffs for HT V
Existing tariff Proposed tariff Tariff Category
Demand Charge in Rs/KVA/ month
Energy charge in Paise per kWHr (unit)
Demand Charge in Rs/KVA/ month
Energy charge in Paise per kWHr (unit)
HT Tariff V Nil 300 Nil 300
This is an exclusive tariff for sale to the State of Pondicherry.
103
11.2 Existing and proposed tariff for Low Tension consumers
11.2.1 LOW TENSION TARIFF I-A:
Comparison of existing and proposed tariffs for LT I-A
Tariff Category Existing Proposed
LT Tariff IA
Fixed Charges
1. For consumption up to 50 kWh per month / 100 kWh for two months.
No fixed
charges
No fixed charges
2.Others Rs. 5 per month or
Rs.10 for two months.
Rs. 5 per month or
Rs.10 for two months.
Energy Charges
From 0 to 25 units per month (or) 0 to 50 units for two months
110 paise per kWHr
110 paise per kWHr
From 26 to 51 units per month / 51 to 100 units for two months
130 paise per kWHr
130 paise per kWHr
From 51 to 100 units per month / 101 to 200 units for two months
260 paise per kWHr
260 paise per kWHr
From 101 to 200 units per month / 201 to 400 units for two months
350 paise per kWHr
400 paise per kWHr
From 201 to 300 units per month / 401 to 600 units for two months
350 paise per kWHr
425 paise per kWHr
From 301 units and above per month / 601 units and above for two months
475 paise per kWHr
575 paise per kWHr
Minimum monthly charges Rs. 20 per month (or)
Rs. 40 for Two month
Rs. 20 per month (or)
Rs. 40 for Two month
104
Tariff as per Government of Tamil Nadu subsidy from 16.06.04
Tariff Category
LT Tariff IA
Fixed Charges
1. For consumption up to 50 kWh per month / 100 kWh for two months.
No fixed charges
2.Others Rs. 5 per month or Rs. 10 for two months.
Energy Charges
For consumers who consume upto 50 units per month or 100 units for 2 months;
From 0 to 25 units per month (or) 0 to 50 units for two months
65 paise per kWHr
From 26 to 51 units per month / 51 to 100 units for two months
75 paise per kWHr
For consumers who consume above 50 units per month or 100 units for 2 months;
From 0 to 25 units per month (or) 0 to 50 units for two months
75 paise per kWHr
From 26 to 51 units per month / 51 to 100 units for two months
85 paise per kWHr
From 51 to 100 units per month / 101 to 200 units for two months
150 paise per kWHr
From 101 to 300 units per month / 201 to 600 units for two months
220 paise per kWHr
From 301 units and above per month / 601 units and above for two months
305 paise per kWHr
Minimum monthly charges Rs. 20 per month (or)
Rs. 40 for Two month
105
This tariff is applicable generally for domestic purposes of lights and fans including
radio/TV and other home appliances. The tariff is also applicable to the following
category of services:
(i) Handlooms in residences of handloom weavers (regardless of the fact whether
outside labour is employed or not) and to handlooms in sheds erected where
energy is availed of only for lighting and fans.
(ii) Public conveniences maintained and run by the local bodies and by such other
organisations
(iii) Community Nutrition Centres and Block Offices of Tamil Nadu Integrated
Nutrition Projects.
(iv) Anganwadi Centres, Nutritious Meal Centres and School Buildings associated
with the Government Welfare Schemes and Electric crematorium by local bodies.
(v) Consulting Rooms of any professionals attached to the residences of such
professionals provided no trading is undertaken or no motive power is used in the
Consulting Room.
(vi) All consumers under this category, shall have ISI marked motor and motor loads
of 3 HP and more shall install adequate power factor improvement capacitors (ISI
marked) Non compliance shall invite compensation charges as per TNERC
regulations.
(vii) Old Age Home, Leprosy Centre run in the buildings owned by individual and
leased/rented for charitable purposes.
11.2.2 LOW TENSION TARIFF I-B:
Comparison of existing and proposed tariffs for LT I-B :
Tariff Category Existing Proposed
LT Tariff IB
Fixed Charges Nil Nil
Energy Charges
Till installation of Energy Meter
Rs 10 / Month Rs 10 / Month
On installation of Energy Meter
50 paise per kWHr 50 paise per kWHr
106
Tariff Category Existing Proposed
LT Tariff IB
Minimum monthly charges Rs. 10 per month (or) Rs. 20 for Two month
Rs. 10 per month (or) Rs. 20 for Two month
Tariff as per Government of Tamil Nadu Government policy direction
Tariff Category Existing
LT Tariff IB
Fixed Charges Nil
Energy Charges
Free from 01.04.2004
This tariff is applicable to huts in Village Panchayats and special grade panchayats,
houses constructed under Jawahar Velai Vaiipu Thittam, TAHDCO and Kamarajar Adi
Dravidar housing schemes and huts in Nilgiris District. The tariff is also applicable
subject to following conditions:
(i) Hut means a living place not exceeding 250 square feet area with mud wall and
the thatched roof/tiles/asbestos/metal sheets like corrugated G.I.sheets for roofing.
(ii) Only one light not exceeding 40 watts shall be permitted per hut.
(iii) Wherever, colour TV has been supplied by the Government to BPL family, one
light not exceeding 40 Watts and one 14" colour TV not exceeding 70 Watts
(Total 110 watts) shall be permitted per hut.
(iv) Whenever the norms prescribed in (i) to (iii) above are violated, the service
category shall be immediately brought under Low Tension Tariff I-A and billed
accordingly
107
11.2.3 LOW TENSION TARIFF I-C :
Comparison of existing and proposed tariffs for LT I-C :
Tariff Category Existing Proposed
LT Tariff IC
Fixed Charges Nil Nil
Energy Charges
350 paise per kWHr 500 paise per kWHr
Minimum monthly charges Rs. 50 per month (or) Rs. 100 for Two month
Rs. 50 per month (or) Rs. 100 for Two month
i) This tariff is applicable to the LT bulk supply for railway colonies, plantation
worker colonies, defense colonies, Police Quarters and other notified
categories as decided by the Commission from time to time.
ii) All consumers under this category, shall have ISI marked motor and motor
loads of 3 HP and more shall install adequate power factor improvement
capacitors (ISI marked).Non compliance shall invite compensation charges as
per Tamil Nadu Electricity Regulatory Commission regulations.
11.2.4 LOW TENSION TARIFF II-A:
Comparison of existing and proposed tariffs for LT II-A
Tariff Category Existing Proposed
LT Tariff II A
Fixed Charges Nil Nil
Energy Charges
Village Panchayats 340 paise per kWHr 340 paise per kWHr
Town Panchayats 340 paise per kWHr 340 paise per kWHr
Municipality/Corporation 350 paise per kWHr 350 paise per kWHr
Minimum monthly charges Rs. 50 per month (or) Rs. 100 for Two month
Rs. 50 per month (or) Rs. 100 for Two month
108
Tariff as per Government of Tamil Nadu policy directive from 12.04.07
Tariff Category Existing
LT Tariff II A
Fixed Charges Nil
Energy Charges
Village Panchayats 300 paise per kWHr
Town Panchayats /Municipality/Corporation 330 paise per kWHr
Minimum monthly charges Rs. 50 per month (or) Rs. 100 for Two month
(i) This tariff is applicable to Public Lighting, Public Water Supply and Public Sewerage System belonging to village/Town Panchayats Township areas, Municipalities, Municipal Corporations, TWAD Board , private agriculture wells hired by CMWSSB and TWAD to draw water for public distribution Public Water Supply by New Tirupur Area Development Corporation and separate service connection for streetlight in SIDCO and other Industries Department.
(ii) All consumers under this category, shall have ISI marked motor and motor loads
of 3 HP and more shall install adequate power factor improvement capacitors (ISI marked). Non-compliance shall invite compensation charges as per Tamil Nadu Electricity Regulatory Commission regulations.
11.2.5 TENSION TARIFF II-B
Comparison of existing and proposed tariffs for LT II-B
Tariff Category Existing Proposed
LT Tariff II B
Fixed Charges Rs. 20 per month
or Rs. 40 for two months.
Rs. 20 per month
or Rs. 40 for two months.
Comparison of existing and proposed tariffs for LT II-B
Energy Charges
Government colleges. Government Hospitals Etc
440 paise per kWHr 440 paise per kWHr
Cinema theatres and Cinema studios
440 paise per kWHr 500 paise per kWHr
109
Tariff Category Existing Proposed
LT Tariff II B
Private colleges
440 paise per kWHr 600 paise per kWHr
Minimum monthly charges Rs. 50 per month (or)
Rs. 100 for Two month
Rs. 50 per month (or)
Rs. 100 for Two month
(i) This tariff is applicable to recognised Educational Institutions, Hostels run by
Recognised Educational Institutions, Hostels run by Adi-Dravidar and Tribal
Welfare and Backward Class Welfare Department, Government Hospitals,
Hospitals under the Control of the Panchayat Unions, Municipalities and
Corporations, Veterinary Hospitals, Leprosy Sub-Centres, Primary Health
Centres, Health Sub-Centres, Laboratories, Research Institutes, Studios,
Cinema Theatres, Orphanages, Public Libraries, Homes for Destitute and Old
people, Flood Lighting arrangements in the Rock Fort Temple, its environs
and the roads and pathways leading to temple at Tiruchillapali, Rehabilitation
centre for mentally ill ,Terminal cancer care centre giving free treatment till
death and such other Institutions declared by the Tamil Nadu Electricity
Regulatory Commission from time to time.
(ii) All consumers under this category, shall have ISI marked motor and motor
loads of 3 HP and more shall install adequate power factor improvement
capacitors (ISI marked) Non compliance shall invite compensation charges as
per Tamil Nadu Electricity Regulatory Commission regulations.
11.2.6 LOW TENSION TARIFF II-C:
Comparison of existing and proposed tariffs for LT II-C
Tariff Category Existing Proposed
LT Tariff II C
Fixed Charges Rs. 10 per month or Rs. 20 for two months.
Rs. 10 per month or Rs. 20 for two months.
Energy Charges
All Units 300 paise per kWHr 300 paise per kWHr
110
Tariff Category Existing Proposed
LT Tariff II C
Minimum monthly charges Rs. 50 per month (or) Rs. 100 for Two month
Rs. 50 per month (or) Rs. 100 for Two month
Tariff as per Government of Tamil Nadu's policy directive from 01.01.2006
Tariff Category Existing
LT Tariff II C
Fixed Charges Rs. 10 per month or Rs. 20 for two months.
Energy Charges
From 0 to 60 units per month (or) 0 to 120 units for two months 150 paise per kWHr
From 61 units and above per month ( or)
121 units and above for two months
300 paise per kWHr
Minimum monthly charges Rs. 50 per month (or) Rs. 100 for Two month
(i) This tariff is applicable to actual places of public worship and specially
notified places of Public interest ,mutts, religious institution etc., declared by
the commission time to time.
(ii) The existing concessions to the actual places of worship having annual
income less than Rs.1000 shall be continued under the same terms and
conditions until further orders of the commission.
(iii) All consumers under this category shall have ISI marked motor and motor
loads of 3 HP and more shall install adequate power factor improvement
capacitors (ISI marked). Non-compliance shall invite compensation charges
as per Tamil Nadu Electricity Regulatory Commission regulations.
111
11.2.7 LOW TENSION TARIFF III-A: (1)
Comparison of existing and proposed tariffs for LT III-A (Cottage / Tiny industries)
Tariff Category Existing Proposed
LT Tariff III-A (1)
1. Fixed Charges Rs. 30 per month or Rs. 60 for two months
Rs. 30 per month or Rs. 60 for two months
Existing (Paise/ kWHr) Proposed (Paise/ kWHr)
2. Energy Charges
From 0 to 250 units per month ( or)
0 to 500 units for two months
180 paise per kWHr 180 paise per kWHr
From 251 to 750 units per month ( or)
501 to 1500 units for two months
270 paise per kWHr 270 paise per kWHr
From 751 and above per month ( or)
1501 and above for two months
310 paise per kWHr 350 paise per kWHr
Minimum monthly charges Rs. 60 per month or Rs. 120 for two months
Rs. 60 per month or Rs. 120 for two months
(i) (a) The tariff is applicable to cottage industries, micro enterprises engaged in the
manufacture or production of goods pertaining to any industries specified in the first
schedule to Industries (Development and Regulations) Act 1951 (Central Act 65 of
1951), Small gem cutting units, sericulture, floriculture, Dairy units where the connected
load does not exceed 10 HP.
(b) The intending consumers applying for service connection under LT Tariff III A (1)
claiming to have established the micro enterprise engaged in the manufacture or
production of goods (with connected load not exceeding 10 HP) shall produce the
acknowledgement issued by the District Industries Center under the Micro Small and
Medium Enterprises Development Act, 2006 ( Act 27 of 2006 ) as proof for having filed
Entrepreneurs Memorandum for setting up of Micro Enterprises for manufacture or
production of goods with District Industries Center under whose jurisdiction the
enterprise is located.
(c) The existing consumers who are classified under LT Tariff III A (1) based on the
SSI / Tiny Industries Certificate may be continued to be charged under the same tariff till
next tariff revision.
(ii) Supply to welding sets has to be classified under Low Tension Tariff IIIB
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(iv) All consumers under this category shall have ISI marked motor and motor
loads of 3 HP and more shall install adequate power factor improvement
capacitors (ISI marked). Non-compliance shall invite compensation charges
as per Tamil Nadu Electricity Regulatory Commission regulations.
11.2.8 LOW TENSION TARIFF III-A: (2)
Comparison of existing and proposed tariffs for LT III- A (2)
Tariff Category Existing Proposed
LT Tariff III-A (2)
1. Fixed Charges Rs. 30 per month or Rs. 60 for two months
Rs. 30 per month or Rs. 60 for two months
Existing (Paise/ kWHr) Proposed (Paise/ kWHr)
2. Energy Charges
From 0 to 250 units per month ( or)
0 to 500 units for two months
140 paise per kWHr 140 paise per kWHr
From 251 to 500 units per month ( or)
501 to 1000 units for two months
225 paise per kWHr 225 paise per kWHr
From 501 to 750 units per month ( or)
1001 to 1500 units for two months
225 paise per kWHr 225 paise per kWHr
From 751 units and above per month ( or)
1501 units and above for two months
250 paise per kWHr 250 paise per kWHr
Minimum monthly charges Rs. 60 per month or Rs. 120 for two months
Rs. 60 per month or Rs. 120 for two months
Tariff as per Government of Tamil Nadu's policy directives from 01.02.2006 and
01.08.2006
Tariff Category Existing
LT Tariff III-A (2)
1. Fixed Charges Rs. 30 per month or Rs. 60 for two months
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Existing (Paise/ kWHr)
2. Energy Charges
From 0 to 250 units per month ( or)
0 to 500 units for two months
Free.
From 251 to 500 units per month ( or)
501 to 1000 units for two months
100 paise per kWHr
From 501 to 750 units per month ( or)
1001 to 1500 units for two months
225 paise per kWHr
From 751 and above per month ( or)
1501 units and above for two months
250 paise per kWHr
Minimum monthly charges Rs. 60 per month or Rs. 120 for two months
(i) The tariff is applicable to power looms and related ancillary tiny industries
engaged in warping, twisting and winding.
(ii) The connected load shall not exceed 10 HP under this category.
(iii) All consumers under this category, shall have ISI marked motor and motor
loads of 3 HP and more shall install adequate power factor improvement
capacitors (ISI marked). Non-compliance shall invite compensation charges
as per Tamil Nadu Electricity Regulatory Commission regulations.
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11.2.9 LOW TENSION TARIFF III-B:
Comparison of existing and proposed tariffs for LT III-B
Tariff Category Existing Proposed
LT Tariff III- B
1. Fixed Charges Rs. 30 per month or Rs. 60 for two months
Rs. 30 per month or Rs. 60 for two months
Existing (Paise/ kWHr) Proposed (Paise/ kWHr)
2. Energy Charges
From 0 to 750 units per month or 0 to 1500 units for two months
400 paise per kWHr 400 paise per kWHr
From 751 and above for one month (or) 1501 and above for two months
470 paise per kWHr 500 paise per kWHr
Minimum monthly charges Rs.40 per Kw or part there of the contracted load per month or Rs.80 per Kw or part there of the contracted load for two months.
Rs.40 per Kw or part there of the contracted load per month or Rs.80 per Kw or part there of the contracted load for two months.
(i) This tariff is applicable to all industries not covered under LT Tariff IIIA (1)
and III-A (2) and Common effluent treatment plants, Dairy units, IT industries
Coffee grinding, Ice factory, body building units, saw mill, rice mills, flour
Mills, prawn farming, poultry farms and battery charging units
(ii) Supply to welding sets shall be charged 15% extra.
(iii) The lighting load restrictions under this category are removed
(iv) All Low Tension Services under this category and with a connected load of 25
HP and above, should maintain a power factor of not less than 0.85 . Where
the average power factor of Low Tension Service connection is less than the
stipulated limit of 0.85 the following compensation charges will be levied.
Below 0.85 and up to 0.75 One per cent of the current consumption
charges for every reduction of 0.01 in
power factor from factor from 0.85.
Below 0.75 One and half per cent of the current
consumption charges for every reduction of
0.01 in power factor from 0.85
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(v) Incentive for High Power Factor: Wherever the power factor of HT services
exceeds above 0.90, a Power Factor rebate at 0.5% of the amount of current
consumption charges for every increase of 0.01 in PF above 0.90 shall be
allowed.
11.2.10 LOW TENSION TARIFF IV:
Comparison of existing and proposed tariffs for LT IV
Tariff Category Existing Proposed
LT Tariff IV
Fixed Charges Nil Nil
Energy Charges
Till installation of Energy Meter
Rs 250 per HP per Annum
Rs 250 per HP per Annum
On installation of Energy Meter
20 paise per Kwhr 20 paise per Kwhr
Minimum monthly charges Rs. 25 per month (or) Rs. 50 for Two month
Rs. 25 per month (or) Rs. 50 for Two month
Tariff as per Government of Tamil Nadu's policy directives from 01.04.2004 for normal
categories and from 01.04.2006 for SFS categoies
Tariff Category Existing
LT Tariff IV
Fixed Charges Nil
Energy Charges
Normal category FREE From 1.4.2004
SFS category FREE-FROM 1.4.2006
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(i) This tariff is applicable to Agriculture and the Government Seed Farms, pump sets of Tamil Nadu Agriculture university, pumpsets of Research centre of Tamil Nadu Forest department pumpsets of Government coconut nurseries and pumpsets of Government coil seed farms
(ii) This tariff is applicable irrespective of owner ship of land if the usage of
electricity is for agriculture and the usage is restricted to the owned/leased
area
(iii) All the new services under this category shall have ISI marked motors and
power factor compensation capacitors to qualify for the supply. All the
existing services should be provided with power factor compensation
capacitors within one year. Non-compliance to provide the capacitors shall
invite compensation charges as per the Tamil Nadu Electricity Regulatory
Commission regulations.
(iv) The services under this tariff shall be permitted to have lighting loads up to 50
watts per 1000 watts of power connected subject to a maximum of 150 watts
inclusive of wattage of pilot lamps. Lighting the farm or the field around the
pump sets should be through energy saving compact fluorescent lamps only.
Extra lighting over and above the limit and for uses other than lighting shall
be through a separate service under LT Tariff V only.
(v) Agriculturists shall be permitted to use the water pumped from the well and
stored in overhead tanks for bonfire domestic purposes in the farmhouse. The
farmhouse shall be in close proximity not exceeding 50 meters from the well.
(vi) If it is established that the water pumped from such services under this
category is used for purposes other than agriculture or sold to others, the
service category shall be changed to LT Tariff V.
(vii) Sugar cane crushing motors and allied equipments shall be permitted to be
connected and operated only when the respective agricultural services are
provided with energy meters, when such services are not provided with
meters, the consumer shall immediately opt for the metering.
(viii) The proposed tariff is also applicable for the existing agricultural services
covered under Self Financing Scheme. The other terms and conditions such
as priority, cost of works etc., as applicable for the SFS shall continue.
11.2.11 LOW TENSION TARIFF V:
Comparison of existing and proposed tariffs for LT IV.
Tariff Category Existing Proposed
LT Tariff V
1. Fixed Charges Rs. 30 per month or Rs. 60 for two months
Rs. 30 per month or Rs. 60 for two months
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Existing (Paise/ kWHr) Proposed (Paise/ kWHr)
2. Energy Charges
From 0 to 100 units per month (or) 0 to 200 units for two months
530 paise per Kwhr 530 paise per Kwhr
From 101 and above for one month (or) 201 and above for two months
580 paise per Kwhr 650 paise per Kwhr
Minimum monthly charges Rs. 40 per month or
Rs. 80 for two months
Rs. 40 per month or
Rs. 80 for two months
This tariff is applicable to all Commercial establishments and consumers not covered in
IA, IB, IC, IIA, IIB, IIC, IIIA (I),III A(2), IIIB, IIIC and IV and commercial activities in
any establishments.
(i) All consumers under this category shall have ISI marked motor and motor
loads of 3 HP and more shall install adequate power factor improvement
capacitors (ISI marked). Non –compliance shall invite compensation charges
as per TNEB’s terms and conditions. The services having a connected load of
25 HP and above shall be covered under the power factor penalty/incentive
scheme as in (iii) below.
(ii) “The tariff is also applicable for L.T. supply for construction activities of
residential building/complex till the completion of construction activities”.
(iii) All Low Tension Services under this category and with a connected load of 25
HP and above, should maintain a power factor of not less than 0.85 . Where
the average power factor of Low Tension Service connection is less than the
stipulated limit of 0.85 the following compensation charges will be levied.
Below 0.85 and up to 0.75 One per cent of the current consumption
charges for every reduction of 0.01 in
power factor from factor from 0.85.
Below 0.75 One and half per cent of the current
consumption charges for every reduction of
0.01 in power factor from 0.85
(iv) Incentive for High Power Factor: Wherever the power factor of HT services
exceeds above 0.90, a Power Factor rebate at 0.5% of the amount of current
consumption charges for every increase of 0.01 in PF above 0.90 shall be
allowed.
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11.2.12 LOW TENSION TARIFF VI:
Comparison of existing and proposed tariffs for LT VI
Tariff Category Existing Proposed
LT Tariff VI
Existing (Paise/ kWHr)
Proposed (Paise/ kWHr)
2. Energy Charges
Supply to temporary activities and construction activities other than Residential building/Residential Complexes for combined lighting and Power load.
700 paise per Kwhr 1050 paise per Kwhr
Lavish illumination. 700 paise per Kwhr 1050 paise per Kwhr
Minimum charges Rs 50 per KW or part thereof per day.
Rs 50 per KW or part thereof per day.
(i) The LT tariff VI is applicable for the requirements of a temporary supply
during the construction stage. The temporary supply shall be converted
into the respective regular category after the completion and compliance
to the respective terms and conditions.
(ii) This Tariff is also applicable for lavish illumination to weddings, garden
parties and other private functions where the illumination is obtained through
bulbs fastened in outer surfaces of walls of buildings on trees and poles inside
the compound and in pandals, etc., outside the main building. All other cases
of illumination, obtained through bulbs intended on outer surface of walls of
buildings on trees and poles inside the compound and in pandals etc., outside
the main building shall be charged as for Temporary Supply.
11.3 GENERAL CONDITIONS
The above tariff shall be read with the General Terms and Conditions of Supply Code
and Distribution code prescribed by the Tamil Nadu Electricity Regulatory Commission
from time to time.
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