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17th ANNUAL REPORT 2014 - 2015

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  • 17th

    ANNUAL REPORT

    2014 - 2015

  • 16th AGM - (From L to R) Mr R Nandagopal -Secretary, Mr C K Narayanaswamy - Treasurer,

    Mr S Dinkaran - Vice President, Dr Pramod Deo - Former Chairman, CERC,

    Mr D Balasundaram - President, Mr N Visvanathan - Vice President,

    Mr P Mahendran - Auditor

    on the dais

    Mr D Balasundaram - President, addressing the gatherings

    Session of Audience

    A lecture on 'Future Power Scenario in India & Tamil Nadu' by Dr Pramod Deo -

    Former Chairman, CERC

  • TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

    COIMBATORE

    17th Annual Report for 2014 - 2015

    &

    Accounts for the year ending

    31st March 2015

  • TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION(Formerly TamilNadu Electricity Consumers Association)

    Regd. No. 181-8524/1998 - CIN No. U37102TZ1998GAP008524

    1st Floor, SIEMA Building, 8/4, Race Course, Coimbatore - 641 018

    Phone: (0422) 4351400 E-mail: [email protected] Web: www.tecaonline.in

    BOARD OF DIRECTORS FOR THE YEAR 2014-2015

    1) Mr D Balasundaram President

    2) Mr N Murugesan Vice-President

    3) Mr S Dinakaran Vice-President

    4) Mr R Nandagopal Secretary

    5) Mr C K Narayanaswamy Treasurer

    6) Mr R Krishnaswamy Director

    7) Mr P Kumar Director

    8) Dr K Venkatachalam Director

    9) Mr B Pattabi Raman Director

    10) Mr K Sathiavan Director

    11) Mr S V Devarajan Director

    12) Mr S R Rabindar Director

    AUDITOR:

    Mr P Mahendran B.Sc., FCA ,Coimbatore

    BANKERS :

    Indian Bank, P. N. Palayam, Coimbatore Kotak Mahindra Bank, Avinashi Road, Coimbatore

    LEGAL ADVISOR :

    Mr N L Rajah B.Sc., B.L., Advocate, Chennai

    FACEBOOK

    [email protected]

    TWITTER

    [email protected]

    GOOGLE GROUPS

    [email protected]

    WHATS APP

    TECA Announces Admin. No. 98946 95219

    | 17th Annual Report | 2

  • | 17th Annual Report | 3

    Thiru C R SwaminathanFounder President, 1998 - 2003

    Thiru R Palaniswamy2003 - 2005

    Thiru S V Arunachalam2005 - 2007

    Thiru A V Varadharajan2007-2010

    Thiru Mahendra Ramdas2010-2012

    Thiru D BalasundaramPresident

    Thiru S DinakaranVice - President

    Thiru R NandagopalSecretary

    Thiru C K NarayanaswamyTreasurer

    PAST PRESIDENTS

    OFFICE BEARERS

    Thiru N MurugesanVice - President

  • | 17th Annual Report | 4

    Directors' ReportFor the Period 01st April 2014 to 31st March 2015

    Presented at the 17th Annual General Meeting

    Dear Members,

    Our Association was incorporated in the year 1998 to create awareness among consumers of electricity in

    Tamil Nadu about the new policy initiatives being taken by the Government of India and to safeguard their

    interests. In the last sixteen years the Association has been endouring to achieve itself these objectives.

    TECA works with various trade associations in industry, commerce and service sectors across the State

    on common issues. It was instrumental in the formation of the Tamil Nadu Electricity Consumers' Joint

    Council (TN EC JC) in 2012 and houses its offices. TN EC JC has representatives from more than 140

    trade associations in it.

    1. TECA Membership Status:

    Number of members as on 01-04-2014 : 638

    Number of members joined during the year 2014-2015 : 22

    Members resigned during the year 2014-2015 : 28

    Total members as on 31-03-2015 : 632

    Total Sanctioned Demand of TECA members : 922.8MW

    2. Directors elected to the Managing Committee during the Year 2014-15

    The General Body has elected the following members to the Managing Committee during the

    16th AGM held on 16.09.2014.

    Sl. No. Name of the Director Address

    01. Mr S V Devarajan Managing Director

    Southern Cot Spinners Coimbatore (P) Ltd

    No. 27/9 A Thirunagar, Trichy Road,

    Singanallur, Coimbatore - 641 005.

    02. Mr S R Rabindar Managing Director,

    Vamsadhara Paper Mills Ltd

    3/2 Umayal Street, Kilpauk, Chennai

    The General Body has re-elected the following members to the Managing Committee during the

    16th AGM held on 16.09.2014

    01. Mr P Kumar Head-Operations

    Madras Aluminium Company Ltd

    Post Box No. 4, Mettur Dam,

    Salem District

    02. Mr B Pattabiraman Managing Director

    G.B. Engineering Enterprises,

    D99 Developed Plot Estate

    Thuvakkudi, Trichy

  • | 17th Annual Report | 5

    3. The Board of Directors for the Period 2014-2015

    1) Mr D Balasundaram President

    2) Mr N Murugesan Vice-President

    3) Mr S Dinakaran Vice-President

    4) Mr R Nandagopal Secretary

    5) Mr C K Narayanaswamy Treasurer

    6) Mr R Krishnaswamy Director

    7) Mr P Kumar Director

    8) Dr K Venkatachalam Director

    9) Mr B Pattabi Raman Director

    10) Mr K Sathiavan Director

    11) Mr S V Devarajan Director

    12) Mr S R Rabindar Director

    The present Office Bearers were elected in the Board of Directors' meeting held on 16.09.2014.

    4. Directors' attendance in Board Meetings:

    Sl. No Name of the Office Bearers and Number of Meetings Number of

    Directors held during Meetings

    the period attended

    1 Mr D Balasundaram - President 05 05

    2 Mr N Murugesan - Vice President 05 04

    3 Mr S Dinakaran - Vice President 05 01

    4 Mr R Nandagopal - Secretary 05 03

    5 Mr C K Narayanaswamy - Treasurer 05 05

    6 Mr R Krishnaswamy 05 04

    7 Mr B Pattabi Raman 05 00

    8 Dr K V Venkatachalam 05 04

    9 Mr P Kumar 05 01

    10 Dr K Sathiavan 05 04

    11 Mr S V Devarajan 02 02

    12 Mr S R Rabindar 02 01

  • | 17th Annual Report | 6

    5. Directors to retire by rotation

    The Following Managing Committee members are laying down their offices at the end of the 17th Annual

    General Meeting.

    Mr D Balasundaram, Mr N Murugesan, Mr R Nandagopal, and Mr C K Narayanaswamy are retiring by

    rotation. Mr D Balasundaram, Mr N Murugesan, Mr R Nandagopal is not eligible for re-election since they

    has been elected to two consecutive terms of office as director. Mr C K Narayanaswamy, being eligible,

    seek for re-election.

    The Board of Directors, on its own and on behalf of the Members of TECA, thanks all the Directors

    vacating their offices for their guidance and assistance given to TECA during their tenure.

    6. Auditor

    The auditor of the Association for the year 2014-2015, Mr P. Mahendran B.Sc., FCA, retires at the

    conclusion of the 16th Annual General Meeting, and he is eligible for re-election.

    7. Comments on the Annual Accounts

    The audited accounts for the year ending 31st March 2015 are enclosed.

    During the year the Association had an income of Rs. 32,14,158/- and expenditure of Rs. 24,21,507/-

    leaving a surplus of Rs. 7,92,651/-.

    The surplus funds of the Association are kept invested in bank deposits and mutual funds.

    After sufficient funds are gathered, the Association intends to acquire space for its offices.

    There are no comments of the Auditor required to be responded to by the Board.

    8. Economic situation during the Year

    India is set to become the world's fastest-growing major economy by 2016 ahead of China, the

    International Monetary Fund (IMF) said in its recent latest forecast. India is expected to grow at 6.3 per

    cent in 2015, and 6.5 per cent in 2016 by when it is likely to cross China's projected growth rate, the IMF

    said in the latest update of its World Economic Outlook.

    The Economy of India is the seventh-largest in the world by nominal GDP and the third-largest by

    purchasing power parity (PPP). The country is one of the G-20 major economies, and a developing

    economy among the top 20 global traders.

    According to the Indian Finance Ministry the annual growth rate of the Indian economy is projected to

    have increased to 7.4% in 2014-15 as compared with 6.9% in the fiscal year 2013-14.

    Indian Industry accounts for 26% of GDP and employs 22% of the total workforce. According to the World

    Bank, India's industrial manufacturing GDP output in 2012 was 10th largest in the world on current

    US dollar basis ($239.5 billion) and 9th largest on inflation adjusted constant 2005 US dollar basis

    ($197.1 billion)

    9. Electric Power supply situation in India in the year 2014-15 & Anticipated Power supply

    situation in the year 2015-16

    A write up on the major developments in the Electricity Sector in India during the last year is enclosed as

    Annexure 3.

  • | 17th Annual Report | 7

    10. The Events and announcements made in Electricity sector in India during the Year 2014-15

    A note on the matter is given in the Annexure 4.

    11. Electric Power supply situation in Tamil Nadu in the year 2014-15

    A write up on the electric power supply situation in Tamil Nadu during the year 2014-15 is given in

    Annexure 5.

    12. The Events and announcements made in Electricity sector in Tamil Nadu during the Year

    2014-15

    A note on the matter is given in the Annexure 6.

    13. TECA's Endeavours

    TECA had taken a number of initiatives in the matter of promoting the interests of its members during the

    year 2014-15. A summary of these efforts is given in Annexure 1 and Annexure 2.

    14. Participation in Consumer Protection Council meetings at the following region

    TECA has been attending the Consumers Protection Council meeting conducted by the Chief Engineer /

    Distribution of the following region. During these meetings the grievances of members were conveyed to

    the concerned authorities for necessary action. The details of the meeting are given below.

    Region Date of meeting

    Coimbatore Region 19.06.2014

    25.09.2014

    08.01.2015

    15. Communications with Members

    a. TECA News Clippings:

    We are circulating TECA News Clippings through email on regular basis. These reports on the important

    developments on electricity sector keep our members abreast of the developments in the country. We are

    proud to say that we are receiving warm appreciation from our members on these Clippings.

    b. Website:

    We are updating the information about the important Circulars, Event alerts, Recent Press Notes, Energy

    Conservation Tips and other activities about TECA regularly. Please visit us www.tecaonline.in

    c. Facebook & Twitter:

    We are posting on the Facebook / Twitter the important TECA Circulars, latest information about

    electricity, our News Clippings and other information. Members are requested to join in our account for

    availing information's instantly. Our Facebook Id: [email protected] Twitter Id:

    [email protected]

    d. Google Groups :

    We had an account in Google Groups. In this, we are posting information's about Electricity, Circulars,

    TANGEDCO Orders, High Court Orders, and so on. Members may also post their comments and

    interact about the information. We request you to join in our Google Group account Id is

    [email protected].

  • | 17th Annual Report | 8

    e. Whats app :

    We have started Whats app group in the name of “TECA Announces”. In this group, our Board of

    Directors, Past Presidents, Special Invitees are the members, we may share latest informations and

    comments on the electricity news, Governments announcements about power sector, TANGEDCO

    circulars, etc.. Members who wish to join the group are requested to contact TECA.

    16. Directors' Meetings:

    During the year 2014 - 2015, the Board of Directors meeting was held on the following dates at

    Coimbatore.

    Sl. No DATE VENUE

    1 21st April 2014 SIEMA Building

    2 05th July 2014 SIEMA Building

    3 16th September 2014 Hotel Rathna Residency

    4 16th December 2014 SIEMA Building

    5 27th February 2015 SIEMA Building

    17. Periodical Meetings of Members

    We are conducting a meeting of members in each month in which a directors' meeting is not held. The

    purpose of the meeting is to exchange views on technical and commercial matters important to members.

    These meeting were held at SIEMA Building, Board Room, 2nd Floor, 8/4, Race Course Road,

    Coimbatore - 641 018 on the following date.

    Sl. No DATE

    1 12th May 2014

    2 19th May 2014

    3 31st July 2014, SEMINAR

    4 11th October 2014

    5 17th October 2014

    6 20th October 2014

    7 05th November 2014

    8 10th March 2015, SEMINAR

    Members are invited to participate in such meetings in the future. The date and time of the meeting can be

    ascertained from TECA's office.

    18. Statutory Declarations

    a. Fixed Deposits

    The Association has not accepted any fixed deposit from the public during the year ending 31.03.2015.

    b. Particulars of Employment

    No employee is in receipt of Rs. 2.00 lakhs and above per month pursuant to the provisions of section

    217 (2A) of the Companies Act, 1956 read along with the Company Rules (1975)

  • | 17th Annual Report | 9

    19. Acknowledgements:

    The Board of Directors wishes to place on record its sincere thanks and appreciation for the co-operation

    and support given by the members and look forward to their continued support.

    On behalf of the Board of Directors

    (Sd/-)

    Coimbatore D Balasundaram

    18.05.2015 President

    List of Annexures

    Annexure - 1 TECA Endeavours

    Annexure - 2 Legal actions taken by TECA

    Annexure - 3 Electric Power supply situation in India in the year 2014-15

    Annexure - 4 Important Events & Announcements in the Electricity Sector in India during the

    year 2014-2015

    Annexure - 5 Electric Power supply situation in Tamil Nadu in the year 2014 – 15.

    Annexure - 6 Events and announcements made in Electricity sector in Tamil Nadu during the

    Year 2014-15.

  • | 17th Annual Report | 10

    Board of Directors Report 2014-15

    Annexure -1

    TECA's Endeavours

    1. Meetings held / Attended

    wTECA had organized One day Seminar on “Energy Conservation in Foundry Industry” at Hotel

    Rathna Residency on 31st July 2014 along with Petroleum Conservation Research Association

    (PCRA). The Members from TECA, COINDIA & IIF attended the meeting.

    wTECA had organized a Lecture on “Electricity Reforms needed for India's Economic Growth”, by

    Dr. Pramod Deo, Former Chairman, Central Electricity Regulatory Commission, Ministry of

    Power, New Delhi on 16th September 2014 at Hotel Rathna Reisdency, Coimbatore.

    wTECA had organized a presentation on “Sourcing Power through Alternate Sources” by Shri.

    Pravin Abraham – Director, Manikaran Power Ltd., Mumbai on 16th September 2014 at Hotel

    Rathna Reisdency, Coimbatore.

    wTECA arranged a Press Meet jointly with other Industrial Associations on 05.11.2014 on the

    TNERC's proposal of Electricity Tariff Revision. 24 Industrial Associations in Coimbatore were

    participated.

    wTECA arranged another Press Meet jointly with other Industrial Associations at IIF Conference

    Hall on 12th December 2014 to express the views on Tariff Order No. SMT No. 9 dated

    11.12.2014 issued by TNERC. 10 Associations were participated in this Press meet and it was

    widely reported in media.

    wTECA had organized a presentation on “ Harmonics Mitigation & Discussion of Case Study”

    by Thiru A D Thirumoorthy, Energy Consultant on 10th March 2015 at 'ND hall', 2nd Floor, SIEMA

    Building, 8/4 Race Course, Coimbatore - 641 018.

    2. TECA's Representations for the period 01.04.2014 to 31.03.2015

    2.1) Representations to TANGEDCO & Government of Tamil Nadu & TECA PRESS NOTE

    S.No Date Recipients Subject

    1 28.04.2014 The Chairman Cum To withdraw the proposal of Provision

    Managing Director of harmonic controls with consumer

    TANGEDCO, installations receiving supplies through

    11/22 kV supply lines as per CEA

    The Chief Engineer clarification.Coimbatore

    2 07.05.2014 The Secretary to To appoint Chairperson to TNERC

    Government, Energy

    Department

    3 05.06.2014 Chief Engineer, Congratulating him for

    Coimbatore assumption as Chief Engineer.

  • | 17th Annual Report | 11

    S.No Date Recipients Subject

    4 07.06.2014 Member Secretary, R e q u e s t i n g a n a m e n d m e n t t o

    Director Transmission, Tamil Nadu Electricity Supply Code,

    Code review Panel 2004, relating to Security Deposits

    Committee, to be kept with the TANGEDCO by

    TANTRANSCO captive power consumers.

    5 12.06.2014 Thiru K Gnanadesigan, Requesting TANGEDCO to issue a

    IAS., Chairman & notification relating to Security Deposits

    Managing Director required to be kept with TANGEDCO

    TANGEDCO by the consumers in government

    promoted industrial estates.

    6 07.07.2014 Member Secretary, R e q u e s t i n g a n a m e n d m e n t t o

    Director Transmission Ta m i l N a d u E l e c t r i c i t y S u p p l y

    Code review Panel Code-2004 and Electricity Supply Code

    Committee & Regu la t ion Regu la t ion 6 .10 (2 )

    TANTRANSCO applicable for all Union Territories

    including Puducherry.

    7 29.11.2014 Thiru K Gnanadesigan, To withdraw the proposal of Provision

    IAS.,CMD.,TANGEDCO, of harmonic controls with consumer

    The CFC, TANGEDCO installations receiving supplies through

    11/22 kV supply lines- based on the

    counter affidavit fi led by Central

    Electricity Authority (CEA) confirmed that

    harmonic controls and the relevant

    Regulation is applicable only to Bulk

    Consumers connected with 33 KV or

    above supply lines.

    8 05.12.2014 Thiru K Gnanadesigan, Congratulating him for his assumption

    IAS.,Chief Secretary to of 43rd Chief Secretary of Tamil Nadu.

    Government,

    9 08.12.2014 Thiru Dr M Saikumar Congratulating him for his assumption

    I.A.S., CMD as Chairman of TANGEDCO.

    10 15.12.2014 The Chief Engineer - Seeking clarification based on TNERC

    Commercial, Tariff Order dated 11.12.2014 in SMT

    TANGEDCO, Order No.9 of 2014. provided under the

    caption of “Commission's Views” in Page

    No. 50 on harmonic controls with

    consumer installations receiving supplies

    through 11/22 kV supply lines.

  • | 17th Annual Report | 12

    S.No Date Recipients Subject

    11 08.05.2014 TECA PRESS NOTE Requesting Tamil Nadu Government to

    appoint a retired or sitting Judge of

    Madras High Court as the Chairperson

    of TNERC in accordance with Supreme

    Court Judgment in Civil Appeal No. 4126

    of 2013 dated 04.04.2014.

    12 18.06.2014 TECA PRESS NOTE Congratulating TANGEDCO officials for

    achieving New peaks of performance

    on 17.06.2014. (TANGEDCO has

    supplied 292.233 million units of

    electricity and catered to a maximum

    demand of 13,655MW)

    2.2) Representations/Comments/Suggestions sent to Secretary-TNERC

    S.No Date Subject

    1 10.04.2014 a) To review orders “Extension of Order dated 20-06-2013 inT.P.NO.1 of 2013” and “Extension of Order dated 20-06-2013 inT.P.NO.2 of 2013”

    b) Clarify regulations to proceed with tariff determination processfor 2014 in the light of order and c) give appropriate directions toTANGEDCO to file tariff petitions on time.

    2 11.04.2014 Requesting to send the data pertaining to the Load sheddingpractices in Tamil Nadu from TANGEDCO.

    3 18.04.2014 TNERC to direct TANGEDCO to furnish the details required inconnection with Load Shedding Protocol Committee.

    4 14.05.2014 TECA comments sent on the matter of Load Shedding Protocol inthe matter of Equitable Distribution of Electricity.

    5 27.05.2014 To make necessary correction in the Minutes of the second meetingof the Load Shedding Protocol Committee held on 20.05.2014.

    6 10.06.2014 To Congratulate Shri. R Akshyakumar, for the appointment of TNERCChairman

    7 26.09.2014 To direct TANGEDCO to arrive a proposal in the matter of EquitableDistribution of power and submit it before the Committee for itsconsideration a new Load Shedding Protocol.

    8 06.10.2014 Requested to initiate Suo-motu' action in Restriction & Control Measures imposed by TANGEDCO vide its Memo. No.CE/Comml/SE/EE/R&C/F. Power Cut/D.211/2014, dtd 23.09.2014.

  • | 17th Annual Report | 13

    S.No Date Subject

    9 07.10.2014 Requested to provide the details as mentione in the Summary of

    ARR determination of TANGECO for 2014-15 provided by TNERC in

    their website.

    10 27.10.2014 TECA comments on the TANGEDCO & TANTRANSCO Tariff Hike

    proposal 2014-2015

    11 26.11.2014 TECA sent an Application dtd 26.11.2014 to the Secretary, TNERC

    to appoint Mr. D Balasundaram as a member in the Code Review

    Panel.

    2.3) Representation's/Comments/Suggestions to CENTRAL & STATE Ministers in the period

    01.04.2014 to 31.03.2015

    S.No Date Letter Sent to Subject

    1 27.05.2014 To All : Member of R e q u e s t e d t h e m t o t a k e o u r

    Parliament Members representations, views and issues

    from Tamil Nadu with respect to the supply of electricity

    in Tamil Nadu which need to be

    presented to the Parliament and to the

    Government of India. Also requested to

    take them up in the appropriate forums.

    2 27.05.2014 Shri. Piyush Goyal, Congratulating him for the appointment

    Hon'ble Minister for as Hon'ble Minister for Power.

    Power

    3 16.06.2014 NTPC LTD, NLC LTD, Requested to send the information's on

    POWER GRID their ongoing projects and future

    CORPORATION OF p r o j e c t s w h i c h w o u l d b e n e f i t

    INDIA LTD, t h e e l e c t r i c i t y c o n s u m e r s i n

    TANGEDCO, Tamil Nadu.CERC,CEA, TNERC,

    ASSOCIATION OF

    POWER PRODUCERS

    4 10.06.2014 Shri Narendra Modi Welcoming the Government's proposal

    Hon'ble Prime Minister to launch comprehensive National

    Energy Policy and expand the national

    solar mission and connect households

    and industries with gas grids. Also

    welcoming the government's proposal

    on urgently pursue reforms in the coal

    sector to attract private sector

  • | 17th Annual Report | 14

    S.No Date Letter Sent to Subject

    investment and the development in

    civilian sector nuclear projects which

    can survive India's future energy

    requirement.

    5 23.06.2014 Shri Pradeep Kumar TECA sent its suggestion on Power

    Sinha, Secretary, Sector to be represented in the

    Ministry of Power proposed presentation to be submitted to

    the Honourable Prime Minister and the

    Honourable Minister for Power

    6 26.09.2014 Dr J Jayalalitha Joint Memorandum with Chamber,

    Hon'ble Chief Minister CODISSIA, SIMA, SIEMA, SISPA, IIF,

    on “request for postponement of

    proposed Power Tariff increase to next

    financial year”.

    7 01.10.2014 Thiru.O.Panneerselvam Requesting the Honourable Chief

    Hon'ble Chief Minister of Chief Minister to direct the Department

    Tamil Nadu of Energy and TANGEDCO to minimize

    the difficulties faced by the High Tension

    Industrial and Commercial Consumers,

    particularly those in MSME Sector.

    8 12.12.2014 Thiru. O. Panneerselvam Request to withdraw the power tariff

    Hon'ble Chief Minister of hike or subsidize the increase proposed

    Tamil Nadu and by TNERC Tariff order dtd 12.12.2014

    Thiru Natham

    R Viswanathan Hon'ble

    Electricity Minister &

    Excise

    9 13.12.2014 Thiru.O.Panneerselvam Request the Government of Tamil Nadu

    Hon'ble Chief Minister of to role back the increase in Electricity

    Tamil Nadu Tariff effective from 12.12.2014 or

    subsidies the entire additional burdenThiru. Natham as consumers

    R. Viswanathan

    Hon'ble Minister for

    Electricity, Prohibition &

    Excise

  • S.No Date Letter Sent to Subject

    10 09.03.2015 Shri R. N. Nayak - CMD Congratulating him and Power Grid

    Power Grid Corporation Corporation, for being awarded the

    of India Ltd prestigious ”Star PSU Award for 2014”

    by Business Standard newspaper, and

    receiving the award in the hands of

    Honourable Finance Minister, Sri Arun

    Jaitley on 07-03-2015.

    11 09.03.2015 Shri Piyush Goyal Thanking for various announcements

    Honourable Minister made by him to strengthen Tamil Nadu

    for Power power sector during his visit on

    07.03.2015 to Chennai.

    3) Circulars sent to members for the period 01.04.2014 to 31.03.2015

    S.No Date Subject

    1 14.05.2014 TANGEDCO circular allowing three installments to pay Additional

    Current Consumption Deposit and instruction to SE's not to collect

    BPSC on 2nd and 3rd installments

    2 27.05.2014 Tamil Nadu Government Press Release on withdrawal of Power cut

    from 01st June 2014.

    3 02.06.2014 TANGEDCO Chief Engineer/ Commercial, Chennai, has issued a

    Memo No. CE/Comml/SE/EE/R&C/AEE-1/F.PowerCut/D.139/14,

    dated 30.05.2014 on withdrawal of Power cut from 01st June 2014

    4 03.06.2014 TNERC proposal's to amend TN Electricity Supply Code 2004 by

    including Open Access Consumers (other than wind) in the net of

    reviewing adequacy of security deposit- Draft Amendment.

    5 11.06.2014 Indian President Pranab Mukherjee's address in Parliament about

    the Indian Power Sector dtd 9th June 2014.

    6 23.07.2014 TANGEDCO started collecting Cross Subsidy Surcharges for Open

    Access power purchased from 12.07.2012 on the basis of Tamil

    Nadu G.O. (Ms) No 79 of Energy (C3) Department dated

    11-07-2012 even R & C Measures are enforced.

    7 06.08.2014 TANGEDCO levy on compensation charges for exceeding the

    harmonics dumping limit set by CEA and the amount has been

    included in the CC Bill. This writ was filed by our Legal Advisor in

    Chennai seeking to quash the charges and also a direction to

    TANGEDCO to await clarification by CERC.

    | 17th Annual Report | 15

  • | 17th Annual Report | 16

    S.No Date Subject

    8 12.08.2014 Tamil Nadu has released the Tamil Nadu Solar Energy Policy 2012

    vide GO (Ms) No. 121 on 19.10.2012 and notified various

    procedures in the matter of implementation of the policy including

    Solar Power Obligation (SPO).

    9 23.09.2014 Intimating the members of re-introduction of R &C measures and

    TANGEDCO working details vide Memo.

    No.CE/Comml/SE/EE/R&C/F. Power Cut/D.211/2014,

    dt.23.09.2014

    10 24.09.2014 Request the members to send their comments on TNERC Public

    Notice on Determination of ARR and Proposed Tariff for 2014-2015

    by TANGEDCO & TANTRANSCO

    11 27.09.2014 Coimbatore industrial associations jointly made an appeal to the

    Honourable Chief Minister of Tamil Nadu, Dr J Jayalalithaa on the

    proposed electricity tariff increase.

    12 04.10.2014 Request the members to send the details of load shedding from

    23.09.2014 onwards in their area on weekly basis from Monday to

    Sunday.

    13 10.11.2014 TECA has sent its objection and comments for the proposal of Tariff

    Hike to TNERC through Registered Post and also participated in the

    Public Hearing held at Erode on 31.10.2014

    14 18.11.2014 Intimation on Public Interest Litigation filed in the Madras High Court

    on the matter of proposal of Tariff Hike by TNERC . The case is

    numbered as WP 29175 of 2014.

    15 28.11.2014 Hearing date intimated in the matter of Harmonics filed at High

    Court. The hearing was posted to 05.12.2014

    16 09.12.2014 PIL case heard on 09.12.2014 and the Bench ordered to post the

    matter on 16.12.2014.

    17 11.12.2014 High Court hearing dtd 11.12.2014 on harmonics and the matter

    has been posted for 18.12.2014 for further hearing.

    18 12.12.2014 TNERC has passed Tariff Revision Order SMT No.8 of 2014 for

    TANTRANSCO and SMT.No.9 of 2014 for TANGEDCO on

    11.12.2014. These orders will be effective from 12.12.2014.

    19 16.12.2014 TECA sent TANGEDCO instruction on method of billing from

    12.12.2014 as per Tariff Revision Order SMT No.8 of 2014 for

    TANTRANSCO and SMT.No.9 of 2014 for TANGEDCO on

    11.12.2014.

  • | 17th Annual Report | 17

    S.No Date Subject

    20 17.12.2014 Government of Tamil Nadu had filed a Transfer Petition before

    Hon'ble Supreme Court of India seeking direction to transfer all

    Public Interest Litigation matter on Tariff issues, from Madras High

    Court to Supreme Court. The Hon'ble Supreme Court has ordered

    all proceedings of the High Court to be stayed.

    21 23.12.2014 High Court hearing dtd 23.12.2014 on harmonics and the matter

    as been posted for 05.01.2015 for further hearing.

    22 07.01.2015 High Court directs the consumers to pay 25% of the harmonic

    compensation charges, if TANGEDCO has levied in the present bill

    and grants Interim Injunction in respect of the future bills.

    In another Writ Petition filed challenging TANGEDCO's Notice

    allowing 3 month time for installing harmonic controls, the High

    Court has granted Interim Stay.

    23 16.03.2015 Intimate the members on petition filed before APTEL Challenging

    TNERC's Suo Motu Tariff orders dated 11.12.2014.

    24 25.03.2015 We have sent TANGEDCO's instructions on 1. Additional Security

    Deposit and 2. Allowing interest on security deposit- Reg

  • | 17th Annual Report | 18

    Board of Directors Report 2014-15

    Annexure - 2

    Actions taken by TECA to protect the Interest of Members through Legal Forums

    1. Equitable Distribution of electricity filed before TNERC

    TECA had filed a petition No. MP 43 of 2012 on 04.12.2012 before TNERC seeking equitable distribution

    of Electricity on the basis of Madras High Court Orders in Writ Petitions No 11292 and 11998 of 2011 and

    TNERC Order No. M.P. No. 15 of 2011 dated 22.03.2012.

    Status :

    The petition was admitted by TNERC on 4th December 2012, several hearings were held.

    On hearing held on 27.02.2014 our Advocates insisted the need for forming a committee to examine the

    existing Load Shedding Protocol adopted in our state and to implement suitable Protocol to distribute the

    available power more equitably. For this purpose the Protocol adopted in Maharashtra may be studied.

    Accordingly the Commission directed TNERC Secretary to constitute a Committee consisting members

    of TANGEDCO, SLDC, Consumers and one representative from TECA and CODISSIA to study the

    details of load shedding prevailing in our State. On behalf of TECA, President Mr D Balasundaram has

    been nominated to represent before this Committee. The Other members are Dr K S Palaniswamy

    (Consumer Representative,Chennai), Mr K Ilango,(Past President -CODISSIA also the Past Vice

    President- TECA) Chief Engineer-Commercial, (TANGEDCO), Chief Engineer Operation

    (TANTRANSCO)

    The First meeting of this Committee was held on 18.03.2014. In this meeting, Committee Members

    wanted to get the following details from TANGEDCO.

    1. Details of load shedding at the time of critical period, when load shedding was maximum

    2. Details of load shedding during the current period with details of planned (projected) relief in different

    group timings.

    3. Details of emergency load shedding over and above the normal load shedding followed in

    emergency situation by TANTRANSCO.

    After receipt of these details from TANGEDCO/TANTRANSCO the Second meeting of this Committee

    was held on 20.05.2014.

    During this meeting, Committee members indicated that, Madras City was omitted from Load shedding in

    the details provided by TANGEDCO. Members insisted that there should be equitable distribution of load

    shedding throughout the State. Scientific procedures have to be adopted and load shedding protocol

    should be in place for different level of shortages in the grid, which are equitable.

    TANGEDCO agreed to come forward with some proposal with a load shedding protocol by 10th June

    2014. We have not received any such proposal from TANGEDCO so far.

    In the meantime, TNERC has listed this case for hearing on 17.04.2015.

    The Additional Advocate General appeared for TANGEDCO and prayed for short adjournment of the

  • | 17th Annual Report | 19

    case. Our Advocate Mr N L Rajah insisted that the case needs to be heard early.

    TNERC had directed that the case will be taken up on 20.04.2015. However on 20.04.2015, the case was

    adjourned.

    The case is expected to be listed shortly.

    2. Equitable Distribution of electricity filed before (CCI)

    The Southern India Engineering Manufactures' Association (SIEMA) has filed a Petition No. 38 of 2013

    before the Competition Commission of India (CCI) seeking equitable distribution of Electricity throughout

    Tamil Nadu. The first hearing took place on 26.06.2013. Considering the magnitude of the matter, the Full

    Commission sat for detailed hearing, which lasted for over 2 hours.

    Status:

    The Commission, passed an order on 08.10.2013 directing the Director General(Investigation) of

    Competition Commission, to investigate the matter for violation of any/all provisions of the Competition

    Act, In case the Director General finds any company in violation of the provision of the Act, it shall also

    investigate the role of the persons who at the time of such contravention were in charge of and

    responsible for the conduct of the business of the company involved so as to fix responsibility of such

    persons under section 48 of the Act. DG shall give opportunity of hearing to such persons in terms of

    section 48 of the Act. The report of DG be submitted within 60 days from receipt of the order.

    On the basis of this order, the Office of the Director General (Investigation), has sent a notice to the

    Chairman cum Managing Director, TANGEDCO to provide required information along with supporting

    documents.

    However TANGEDCO has filed a Writ Petition No. 35047 of 2013 and M.P. No. 1 of 2013 in Madras High

    Court, seeking to quash the order of the Competition Commission of India and the Notice of its Director

    General (Investigation). Informant SIEMA has appointed a Counsel to argue this petition at High Court.

    The hearings are yet to be held.

    3. Electricity Tax on Demand Charges

    The Supreme court in its judgment dated 15.05.2007 in SPIC Vs Electrical Inspector, Govt. of Tamil Nadu

    in Civil Appeal No.2551 of 2007 has held that levy of electricity tax on Demand Charges was invalid.

    Subsequently, Tamil Nadu Assembly has amended the original Act by Tamil Nadu Tax on Consumption or

    Sale of Electricity (Amendment) Act of 2007 (Act 38 of 2007) with a view to nullify the effect of this

    Supreme Court Order. TECA contested this amendment in Madras High Court. Finally, this matter was

    decided against TECA by the Division Bench of Madras High Court in its judgment dated 15.06.2012 in

    Writ Appeals No 11016 and 11017 which upheld the validity of the tax on demand charges also.

    TECA has filed a Special Leave Petition (SLP) Nos. 35425-35426 of 2012 in Supreme Court against the

    order of the Division Bench of Madras High Court.

    Status:

    The SLP of TECA was dismissed on the ground that an association could not file a SLP., while the SLP of

  • | 17th Annual Report | 20

    TASMA alone got admitted in SLP No.26742 of 2012. However,the SLPs filed by individual members of

    SIMA and TECA (viz., SLP (Civil) Nos 3653/2013, 11249/2013, 21500/2013 etc) were admitted and the

    Court granted them interim stay from the collection of electricity tax on MD charges. In respect of Self-

    Generation Tax, the Court served notice to the Government for its reply and the proceedings are pending.

    4. Levy of Cross Subsidy surcharge

    The Government of Tamil Nadu vide G.O.(Ms) No.10, Energy(C3) Department dated 27.02.2009 had

    waived the collection of Cross Subsidy Surcharge during the period of enforcement of Restriction and

    Control measures. The Government withdrew this waiver vide its order in G.O. (Ms) No 79 of Energy (C3)

    Department dated 11.07.2012. TANGEDCO has started collecting Cross Subsidy Surcharges from

    12.07.2012 onwards on the basis of this withdrawal order. This GO was challenged by TECA and its

    members before the Madras High Court in Writ Petition W P 20841 of 2012. The Single Judge of Madras

    High Court has struck down the Government Order and allowed the Writ Petition. The TANGEDCO has

    filed Writ Appeals before the Division Bench of Madras High Court.

    Status:

    Against this order, TANGEDCO has filed Writ Appeal No. 1254 of 2013 before Division Bench of Madras

    High Court. After hearing, the Division Bench has allowed the Appeals filed by TANGEDCO with certain

    directions to TANGEDCO.

    The gist of the directions is as follows:

    “if any one of H.T. consumer has chosen to purchase energy from private sources without availing

    TANGEDCO energy quota, then the H.T. consumer is bound to pay the CSS to the extent of not availing

    such quota. For arriving at such factual aspect, the Superintending Engineers are bound to issue notice

    to the individual Industries and after getting their objection / explanation for such demand, a decision has

    to be arrived at, as to whether TANGEDCO energy to an extent of 60% was available for being utilized for

    the H.T. consumers and if energy was purchased from private sources, definitely, the H.T. consumers are

    bound to pay CSS. Since the demand of CSS for such reason is having civil consequences, an

    opportunity is to be given to those H.T. consumers to explain as to why they have not availed the energy

    from TANGEDCO upto 60% and thereafter, a decision has to be arrived at. Without doing so, directly

    making a demand is against the principles of natural justice as well as fair play in action. Thus, we are of

    the view that the order of the learned single Judge needs modification, as the Government has not

    withdrawn CSS for 40%, which was permitted to be purchased from private sources.

    The Superintending Engineer of respective circle, are directed to issue notice to the individual H.T.

    consumers seeking for their objection / explanation.

    After receipt of such objection / explanation from the individual H.T. consumers, the respective

    Superintending Engineer shall consider the same and give a finding as to whether 60% of energy supply

    was available with TANGEDCO at the relevant point of time and inspite of such availability, whether the

    said H.T. consumers have purchased energy from the outsiders.

    Based on such finding, the Superintending Engineers shall fix the liability accordingly and demand CSS

    from the individual H.T. consumers, in accordance with G.O.(Ms).No.79, Energy (C.3) Department, dated

  • | 17th Annual Report | 21

    11.7.2012 issued by the first appellant/Government and the Circular of the second appellant in Circular

    Memo No.CFC/Rev/FC/Rev/AS-3/D.No.12/Dt.12.7.2012.

    Further Status:

    However, it seems that the TANGEDCO has gone for an appeal by way of SLP before Supreme Court and

    the matter is now placed for the disposal of the Supreme Court. A few individual consumers have also

    gone for appeal and their appeals are also pending before Supreme Court.

    5. Levy of excess demand and energy charges for violation of Peak Hour restrictions

    TANGEDCO has levied excess demand and energy charges based on excess demand reached and

    excess energy consumed by the consumers during Peak Hours from 01.11.2008 based on the TNERC

    order in M P No. 42 of 2008 dated 28.11.2008, after a delay of 10 months. This was challenged by TECA at

    TNERC vide M P No.4 of 2010.

    TNERC passed an order in MP No. 4 of 2010on 04.05.2010 dismissing TECA's petition holding that Tamil

    Nadu Electricity Board is entitled to impose the Excess Demand Charges and Excess Energy Charges

    during evening peak hours as they were in consonance with its order dated 28.11.2008.

    Against this Order, TECA and other Associations have filed appeals Nos. 111, 114, 119, 120, 127, 128,

    129, 130, 131, 141 of 2010 before Appellate Tribunal for Electricity (APTEL).

    APTEL passed an order on 11.01.2011 and held as follows:

    “There is no clarity in TNERC order dated 28.11.2008 about excess demand charges and excess energy

    charges for violation of restrictions during evening peak hours. Only by its order dated 4.05.2010, the

    Commission made it clear that excess demand and energy charges were applicable from for such

    violations. Therefore TNERC could authorise TANGEDCO to collect excess charges for violation only

    from the date of that order that is 04.10.2010”.

    Status:

    This order was challenged by TANGEDCO in Supreme Court vide Civil Appeal No.1090-1099 of 2011 and

    2859 of 2011. The hearings are yet to be held. TECA and its members are respondents in the appeal.

    TASMA has also filed a cross appeal by way of Civil Appeal to protect the interest of consumers

    (C.A.No.3171 of 2011) and the TANGEDCO was directed to make a Bank guarantee for Rs. 75 crores and

    accordingly TANGEDCO had complied with this direction.

    6. Solar Purchase Obligation:

    The Government of Tamil Nadu vide G.O.(Ms) No.121/Energy (C) 2 dated 19.10.2012 launched “Tamil

    Nadu Solar Energy Policy 2012” which envisaged generation of 3000 MW of Solar Energy by 2015.

    TNERC vide its Order No.1 of 2013 dated 07.03.2013 has empowered the TANGEDCO, to administer the

    'Solar Purchase Obligation' mandated by the State Government's Solar Energy Policy. This Order has

    fixed an Obligation of consumption of Solar Power on HT and LT Commercial Consumers @ 3% for 2013

    and 6% from 2014 onwards.

    TECA has filed Appeal No.92 of 2013 before Appellate Tribunal for Electricity (APTEL). Our appeal was

    admitted by the APTEL, Chennai Circuit Bench on 24.05.2013.

  • | 17th Annual Report | 22

    Appellate Tribunal for Electricity (APTEL) vide its order dated 21.01.2014 has set aside the Order No. 1 of

    2013 passed by Tamil Nadu Electricity Regulatory Commission. The gist of the Order is as follows;

    I) The State Commission in discharge of its functions under the Electricity Act, 2003 has to be guided by

    the directions of the State Government u/s 108 of the 2003 Act but the same are not mandatory and

    binding. The State Commission being an independent statutory authority is not bound by any policy

    directions which hampers its statutory functions.

    ii) The State Commission has to be guided by the directions of the State Government u/s 108 of the Act

    only in discharge of the functions assigned to it under the 2003 Act. Such directions have to be

    implemented only under the functions and powers assigned to the State Commission under the 2003

    Act. The Act only provides for specifying the purchase obligation from the renewable energy sources

    under Section 86(1)(e). Thus, the directions of the State Government for SPO can only be considered

    by the State Commission in exercise of its powers under Section 86(1)(e) of the Act.

    iii) The contention of the State Commission that SPO and RPO are two different obligations and the RPO

    has been fixed under RPO Regulations 2010 under Section 86(1)(e) and SPO as per implementation

    of Policy directions of the State Government under Section 108 is not legally valid. The State

    Commission has to consider the directions of the State Government under section 108 in the matter of

    discharge of its functions under the Act and not in a general way outside the functional scope of the

    Act. The State Commission had no power to issue an SPO order as per the directions of the State

    Government u/s 108 in addition and contrary to RPO obligations specified in the RPO Regulations

    2010.

    iv) The State Commission can specify the RPO/SPO on the total consumption of the distribution licensee

    and not selectively and directly on some categories of consumers of the distribution licensee. The

    SPO obligation as provided in the impugned order is contrary to the State Commission's Renewable

    Energy Regulations 2010 and is beyond the powers of the State Commissions. The impugned order

    is also discriminatory to some categories of consumers of the distribution licensee.

    v) The State Commission has simply tried to implement the directions of the State Government by

    passing the impugned order without considering its own functions and powers under the 2003 Act and

    its own Renewable Energy Regulations notified under the Act and even without considering the other

    important issues raised by the objectors.

    In view of above, the Appeals are allowed and the impugned order is set aside. No order as to costs.

    Against this order, TANGEDCO has filed Civil Appeal No. 7945 & 7946 of 2014 before the Supreme

    Court.TECA has filed its counter and the case came up for hearing on 01.05.2015 and the case stands

    adjourned to 10.07.2015.

    7. TNERC Tariff Order No. TP 1 of 2013 dated 20.06.2013

    Tamil Nadu Electricity Regulatory Commission has issued orders on the Tariff Petitions submitted by

    TANGEDCO for fixation of retail tariff and transmission charges. The orders took effect from 21.06.2013.

    TECA have found that TNERC & TANGEDCO have violated certain regulations stipulated in National

    Electricity Policy and Tariff Policy and recent APTEL's directions.

  • | 17th Annual Report | 23

    TECA had challenged this TNERC order before Appellate Tribunal for Electricity (APTEL) videAppeal No.

    199 of 2013.

    APTEL passed final Judgment in this matter on 27.10.2014, partly allowing the Appeal. The highlights of

    the judgment of APTEL are as follows:

    Approval of Capital Expenditure without approval of the Capital Investment Plan:

    We direct the State Commission to true up/provisionally true up the capitalization for FY 2013-14

    immediately and the short fall if any should be accounted for while determining the tariff for the FY 2015-

    16, with carrying cost on the impact of the variation on this account in the ARR. We direct TANGEDCO to

    submit the actual accounts of capital expenditure and capitalization during FY 2013-14 by 30.11.2014 to

    the State Commission. TANGEDCO shall also submit the application for Capital Investment Plan for FY

    2014-15 and 2015-16 in the requisite formats to the State Commission by 30.11.2014 for approval as per

    the Tariff Regulations, if not already done. The State Commission shall approve the Capital Investment

    Plan of TANGEDCO for the FY 2014-15 and 2015-16 after following due process of law, if not already

    done, and consider the same while approving the tariff for the FY 2015-16

    Cross Subsidy:

    We do not find any infirmity in the State Commission not considering transmission charges, taking into

    account demand charges in the tariff and determination of average billing rate in the impugned order.

    However, there is error in determining the Weighted Average Cost of power used for determination of

    CSS as per the Tariff Policy formula. We find that the State Commission has wrongly considered the cost

    per unit in respect of Mettur Thermal Power Station. We direct the State Commission to determine

    Weighted Average Cost of power for top 5% excluding liquidity fuel and renewable average generation

    and Cross Subsidy Surcharge as per the directions given under paragraph 41 of the judgment.

    Peak hour and Non-peak hour Tariffs:

    In the absence of a specific study on pricing of electricity the weighted average energy rate for peak, off

    peak and normal hours (other than peak and off peak) should be equal to the average energy rate decided

    for a particular category of consumer. This means that the differential energy rates for peak and off-peak

    hours should be designed in such a way that the weighted average energy rate for peak, off-peak and the

    normal hours should be equal to the energy rate decided in the tariff schedule of the category of

    consumers. Even though there was no study regarding purchase price of peak power was furnished by

    TANGEDCO, the State Commission has maintained the status quo. Therefore, we set aside the findings

    of the State Commission regarding rates for peak and off peak hours.

    Voltage-wise cost of supply and cost to serve:

    The State Commission is directed to determine the voltage wise cost of supply as per our directions in

    this Judgment and determine the cross subsidy transparently for FY 2012-13 and 2013-14 and 2014-

    15 in the tariff order for 2015-16. TANGEDCO is directed to provide the necessary data as required by

    the State Commission

  • | 17th Annual Report | 24

    Road Map for reduction of Cross Subsidy:

    The State Commission is directed to notify road map for reduction of cross subsidy as per the Tariff

    Policy after following due process of law which should be undertaken immediately.

    8. Appeal No. 62 & 63 of 2015 before APTEL in the matter of TNERC Tariff Order No. SMT

    No.8 of 2014 for TANTRANSCO and SMT.No.9 of 2014 for TANGEDCO

    Tamil Nadu Electricity Regulatory Commission on 23.09.2014 has proposed an increase in electricity

    tariff. The proposal for tariff revision has been made Suo Moto by the Commission without any request

    from TANGEDCO and TANTRANSCO.

    The increased Tariff for HT industries is 85 paise per unit and Rs.50 towards demand charges and the

    new rate of electricity is Rs.6.35 per unit of energy and Rs.350/KVA for demand charge, for HT industries.

    It may be noted that from the order, one Member of the TNERC has not agreed for the Tariff hike and

    accordingly, provided a Dissenting Order in the first time of the history of Regulatory Commissions. Out of

    three members, only two members have agreed for the Tariff Hike.

    TECA has filed an Appeal No. 62 of 2015 before Appellate Tribunal for Electricity (APTEL) to set aside

    TNERC Tariff Order No. 8 of 2014 dated 11.02.2014 in the matter of Suo-Motu Determination of

    Transmission Tariff and other related charges and Appeal No. 63 of 2015 to set aside the TNERC Tariff

    Order No. 9 of 2014 dated 11.02.2014 in the matter of Suo-Motu Determination of Tariff for Generation

    and Distribution.

    Status

    Last hearing was held on 11.05.2015. Counter affidavit of TNERC & TANGEDCO, have been served on

    us. TECA filed rejoinder petition in this matter.

    The case stands adjourned to 07.07.2015 and on this day no sitting were held. Further date of hearing will

    be yet to announce.

    9. Petition No. 126/2014 before CERC in Harmonics Matter

    CEA (Technical Standards for Connectivity to the Grid) Regulations 2007, has introduced inter alia the

    obligation to go for harmonic controls and however, in terms of Clause 2(8), 2(34) and 3 of the

    Regulations, the consumers connected with 11kV / 22kV supply lines were made exempted from the

    harmonic control provisions. However, the TANGEDCO without understanding the concept inbuilt, has

    started demanding harmonic controls from all HT consumers irrespective of the supply line capacity and

    TANGEDCO provided instructions that it would measure the harmonics level of the consumer and give

    three months' notice to the consumers to have the necessary filters to bring it under control. For failure to

    bring control of harmonic level, the TANGEDCO was demanding to pay 15% compensation charges.

    Against this, TECA filed Petition No. 126/MP/2014 before the Central Electricity Regulatory Commission

    (CERC), New Delhi.

  • | 17th Annual Report | 25

    Status

    Petition was heard by the CERC on 18.09.2014.

    The CERC has issued its order on 29.04.2015 stating that:

    “Under the Electricity Act, 2003, there is no provision under which the Central Commission can direct the

    State Commission to amend or modify the Electricity Supply Code to comply with the provisions of the CEA

    Grid Standards Regulations. If the petitioner association is aggrieved by the Tamil Nadu Electricity Supply

    Code, it should approach the appropriate legal forum.

    Therefore, the petitioner has a remedy in law under Regulation 27 of the Tamil Nadu Electricity Supply Code

    to take up the matter for review of the Code to bring about consistency with the CEA Grid Standards

    Regulations.

    For the above reasons, the petition is not maintainable before the Commission. Accordingly, the Petition No.

    126/MP/2014 is disposed of.

    Since a Writ Petition on this matter is before the Madras High Court, TECA has not gone before TNERC.

    10) Writ Petition No. 1242 of 2015 before High Court of Chennai in the matter of Harmonics

    TECA has filed a Writ Petition No.1242 of 2015 before High Court of Chennai, challenging the

    implementation of harmonics for 11/22 kV Consumers. This case came up for hearing before Justice M

    Duraiswamy on Jan 20th, 2015. The Court was pleased to issue notice and directed TANGEDCO to file

    counter on maintainability of the writ petition filed by Association. Till today TANGEDCO has not filed any

    counter in our issue.

    By the mean time on 23.02.2015, our Advocate mentioned this before High Court for listing the matter and

    the Court was pleased to direct the Registry to post the matter on 04.03.2015. However this matter was

    not listed for hearing till this day.

    Meanwhile, few members of TECA have filed Writ Petitions individually in High Court, Madras against:

    1. TANGEDCO's Notice demanding to implement Harmonic control within 3 months' time.

    In this matter the Court has granted interim stay on demand notices.

    2. TANGEDCO has levied Harmonic Compensation Charges through CC Bills

    In this matter, Court has granted interim order on condition that the petitioner to pay 25% of

    TANGEDCO's claim.

    CEA has filed a counter in these Batch of Writ Petitions which is favorable to the Petitioners.

  • | 17th Annual Report | 26

    Annexure - 3

    Electric Power supply situation in India in the year 2014-15

    India is set to become the world's fastest-growing major economy by 2016 ahead of China, the

    International Monetary Fund (IMF) said in its recent latest forecast. India is expected to grow at 6.3 per

    cent in 2015, and 6.5 per cent in 2016 by when it is likely to cross China's projected growth rate, the IMF

    said in the latest update of its World Economic Outlook.

    The Economy of India is the seventh-largest in the world by nominal GDP and the third-largest by

    purchasing power parity (PPP). The country is one of the G-20 major economies, a member of BRICS and

    a developing economy among the top 20 global traders according to the WTO

    According to the Indian Finance Ministry the annual growth rate of the Indian economy is projected to

    have increased to 7.4% in 2014-15 as compared with 6.9% in the fiscal year 2013-14. In an annual report,

    the IMF forecast that the Indian Economy would grow by 7.5% percent in the 2015-16 fiscal year starting

    on April 1, 2015, up from 7.2% (2014–15)

    Industry accounts for 26% of GDP and employs 22% of the total workforce. According to the World Bank,

    India's industrial manufacturing GDP output in 2012 was 10th largest in the world on current US dollar

    basis ($239.5 billion) and 9th largest on inflation adjusted constant 2005 US dollar basis ($197.1 billion)

    Power Sector in India

    Introduction

    Power or electricity is one of the most critical components of infrastructure affecting economic growth and

    well being of nations. The existence and development of adequate infrastructure is essential for

    sustained growth of the Indian economy. The power sector provides one of the most important inputs for

    the development of a country and availability of reliable and inexpensive power is critical for its

    sustainable economic development. To sustain GDP growth rate of around 8-9 %, it is imperative that the

    power sector also grows at the same rate. Power Ministry has set a target of 1,000 units per capita

    electricity consumption for the year 2014-15 compared to 957 units in 2013-14.

    Due to rapid economic expansion, India has one of the world's fastest growing energy markets and is

    expected to be the second-largest contributor to the increase in global energy demand by 2035,

    accounting for 18% of the rise in global energy consumption. Given India's growing energy demands and

    limited domestic fossil fuel reserves, the country has ambitious plans to expand its renewable and nuclear

    power industries. India has the world's fifth largest wind power market and plans to add about 100GW of

    solar power capacity by 2022. India also envisages to increase the contribution of nuclear power to overall

    electricity generation capacity from 4.2% to 9% within 25 years. The country has five nuclear reactors

    under construction (third highest in the world) and plans to construct 18 additional nuclear reactors

    (second highest in the world) by 2025.

    Even after the considerable growth in the power sector infrastructure and the supply of electricity, many

    parts of the country continue to face severe power shortages as consumption by commercial and

    industrial consumers has been increasing at much faster rate than electricity supply.

    The Indian power sector is one of the most diversified in the world. Sources for power generation range

    from conventional ones such as coal, lignite, natural gas, oil, hydro and nuclear power to other viable non-

  • | 17th Annual Report | 27

    conventional sources such as wind, solar, and agriculture and domestic waste. The demand for electricity

    in the country has been growing at a rapid rate and is expected to grow further in the years to come. In

    order to meet the increasing requirement of electricity, massive addition to the installed generating

    capacity in the country is required.

    Installed Capacity

    The electricity sector in India had an installed capacity of 267.637 GW as of end March 2015 and

    generated around 1048.5 BU for the period April 2014 - March 2015. India became the world's third

    largest producer of electricity in the year 2013 with 4.8% global share in electricity generation surpassing

    Japan and Russia. Renewable Power plants constituted 27.25% of total installed capacity and

    Non-Renewable Power Plants constituted the remaining 72.75.

    India's electricity generation touched the 1 trillion units mark during 2014-15 for the first time, showing a

    growth of 8.4 per cent over the previous year. Since 1991-92, the compounded annual growth rate of

    electricity generation has been around 5 to 6.6 per cent, said a government report.

    The biggest contributor was the coal-based power stations which recorded an annual growth rate of 12.1

    per cent. Out of 22,566 Mw added during the year 2014-15, the contribution of thermal power sector was

    significant i.e. 20,830 Mw (92 per cent of the total).

    The report said government's focus has increased on power transmission and distribution. "Steps were

    taken by the government for expediting forest clearances and intensive monitoring of critical transmission

    lines. 22,101 circuit kilometers (ckm) of transmission lines have been commissioned during the year

    2014-15 against 16,748 ckm commissioned during the same period last year, thus having a growth of

    31.96% which is the highest ever achievement in a single year,

    Region wise All India Installed Capacity (MW) including allocated shares in Joint and Central

    sector utilities as on 31.03.2015

    THERMAL

    Coal Gas Diesel Total Nuclear Hydro Res Grand total

    Northern 39431.00 5331 13 44775 1620 17067 5936 69810

    Western 66220 10915 17 77152 1840 7448 11271 97298

    Southern 30343 4963 939 36245 2320 11398 13785 63747

    Eastern 28583 190 17 28790 0 4113 433 33336

    North East 60 1663 143 1865 0 1242 257 3364

    Islands 0 0.00 70 70 0 0 11 81

    All India 164635.88 23062 1200 188898 5780 41267 31692.14 267637

    Source: CEA: Executive summary Power Sector March-15

  • | 17th Annual Report | 28

    Sector-wise All India Installed Capacity (MW) as on 31.03.2015

    THERMAL

    Coal Gas Diesel Total Nuclear Hydro Res Grand total

    Central 48130 7520 0 55650 5780 11091 0 72521

    State 58101 6974 603 65678 0 27482 3804 96963

    Private 58405 8568 597 675471 0 2694 27888 98153

    All India 164636 23062 1200 188898 5780 41267 31692.14 267637

    Source: CEA: Executive summary Power Sector March-15

    Capacity addition during 2014-15

    The past year was a good show in numbers for the power sector. Generation grew 8.4 per cent and the

    peak deficit was down to 3.5 per cent in 2014-15 from 4.5 per cent in 2013-14. However the peak power

    deficit in the southern grid is 22 per cent and in the north-east is 12 per cent. The west has a 14 per cent

    surplus. For the first time in the country, the annual electricity generation in 2014-15 crossed one

    thousand Billion Units or one Trillion Units. Power generation during the 2014-15 is 1048.403 BU The

    biggest contributor was generation from the coal based power stations which recorded an annual growth

    rate of 12.1%.

    The generation capacity addition during 2014-15 was 22,566 MW against a target of 17,830 MW, which is

    the highest ever achievement in a single year. The capacity addition during the first 3 years (2012-13 to

    2014-15) of 12th Plan is 61,014 MW which has not only exceeded the capacity addition of 54,964 MW of

    the entire 11th Plan (2007 to 2012) but also constitutes 68.9% of the total 12th Plan target of 88,537 MW.

    Out of 22,566 MW added during the year 2014-15, contribution of thermal sector was significant i.e.

    20,830 MW (92% of the total). It includes NTPC's 660 MW unit at Barh in Bihar where the first

    indigenously manufactured super critical units by BHEL have been commissioned. The year marked turn

    around in Hydro sector with 736 MW contribution in Central sector that included NTPC's maiden

    contribution and entry in hydro sector with Koldam units. NHPC and SJVNL completed their projects at

    Parbati III and Rampur respectively. The gas based Monarchak Power Plant of 65.4 MW, Agartala ST-II of

    25.5 MW and Palatana Unit-II of 363.3 MW were also commissioned during the year in Tripura which will

    benefit the entire North East. Commissioning of Kudankulam Nuclear power station of 1,000 MW during

    the year will help all the Southern States.

    The focus is now more on transmission and distribution sector. Following a number of steps taken by the

    Government for expediting forest clearances and intensive monitoring of critical transmission lines,

    22,101 circuit kilometers (ckm) of transmission lines have been commissioned during the year 2014-15

    against 16,748ckm commissioned during the same period last year, thus having a growth of 31.96%

    which is the highest ever achievement in a single year. This is 106% of the annual target of 20,882 ckm

    fixed for 2014-15. Similarly, the overall increase in the transformation capacity has been 65,554 MVA

    during 2014-15 which is record achievement in a single year and constitutes 137% of the target of

    47,871MVA fixed for 2014-15.

    The major inter-state transmission system (ISTS) commissioned in 2014-15 includes Raichur-Sholapur

    765 kV 2nd circuit which strengthened the synchronous interconnection of Southern Region (SR) with

  • | 17th Annual Report | 29

    rest of the country thereby facilitating reliable operation of single frequency National Grid. The

    commissioning of 2nd 765 kV line from Raipur to Wardha to Aurangabad during the year provides an

    important corridor for transfer of power from Chhattisgarh area towards load centres in Maharashtra and

    further to Southern Region. Commissioning of Sholapur - Pune 765 kV S/c line has also facilitated

    improvement of power supply in Maharashtra and SR. Commissioning of Silchar - Imphal and Silchar -

    Bongaigaon line during the year will result in significant improvement in power supply to Manipur and

    North-East.

    The huge capacity addition coupled with higher generation and improved transmission capacity has

    resulted in considerably reducing the electricity energy shortage from a level of 7 to 11% during the last

    two decades to a record low of only 3.6% during the year 2014-15.

    Demand trends

    The Indian power sector is undergoing a significant change that is redefining the industry outlook.

    Sustained economic growth continues to drive power demand in India. The Government of India's focus

    to attain 'Power For All' has accelerated capacity addition in the country. At the same time, the competitive

    intensity is increasing on both market side as well as supply side (fuel, logistics, finances and manpower).

    Despite significant growth in electricity generation over the years, the shortage of power continues to exist

    primarily on account of growth in demand for power outstripping the growth in generation and capacity

    additions in power generation.

    Power Supply Position in India Region wise (From April 2014 to March 2015)

    Region Requirement Availability Surplus / deficit

    (MU) (MU) (MU) (%)

    Northern 309920 289983 -19937 -6.4

    Western 292236 289868 -2368 -0.8

    Southern 259531 248453 -11078 -4.3

    Eastern 108771 106982 1789 -1.6

    North East 13055 11885 -1170 -8.7

    All India 1067085 1028955 -38130 -3.6

    Peak Demand and Peak Met in India Region wise (From April 2014 to March 2015)

    Region Peak Demand Peak Met Surplus/deficit

    (MW) (MW) (MW) (%)

    Northern Region 51977 47642 -4335 -8.3

    Western Region 44166 43035 -1131 -2.6

    Southern Region 39094 35818 -3276 -8.4

    Eastern Region 16909 16609 -300 -1.8

    North East Region 2528 2202 -326 -12.9

    All India 148166 141160 -7006 -4.7

  • | 17th Annual Report | 30

    If current average transmission and distribution average losses remain same (32%), India needs to add

    about 135 GW of power generation capacity, before 2017, to satisfy the projected demand after losses.

    Anticipated All India Power Supply Position for the year 2015-16

    Region Energy Peak

    Requirement Available Surplus (+) / Requirement Availability Surplus (+) /Deficit (-) Deficit (-) %

    (MU) (MU) (MU) % (MW) 9MW) (MW) %

    Northern 355794 354540 -1254 -0.4 54329 54137 -192 -0.4

    Western 353068 364826 11758 3.3 48479 50254 1775 3.7

    Southern 313248 277979 -35269 -11.3 43630 35011 -8619 -19.8

    Eastern 124610 127066 2455 2.0 18507 19358 851 4.6

    North East 15703 13934 -1768 -11.3 2650 2544 -106 -4.0

    All India 1162423 1138346 -24088 -2.1 156862 152754 -4108 -2.6

    Source: Load Generation Balance Report 2015-16 (CEA)

    Government Initiatives

    The Government of India has identified the power sector as a key sector of focus to promote sustained

    industrial growth.

    Some of the initiatives taken by the Government of India to boost the power sector of India are as follows:

    lA Joint Indo-US PACE Setter Fund has been established with a contribution of US$ 4 million from

    each side to enhance clean energy cooperation.

    lThe Government of India has announced a massive renewable power production target of 175,000

    MW by 2022, comprising 100,000 MW from solar power, 60,000 MW from wind energy, 10,000 MW

    from biomass and 5,000 MW from small hydro power projects.

    lThe Union Cabinet of India has approved 15,000 MW of grid-connected solar power projects of

    National Thermal Power Corp Ltd (NTPC).

    lThe Indian Railways has signed a bilateral power procurement agreement with the Damodar Valley

    Corporation (DVC). The agreement was signed between North Central Railway and DVC. This is the

    first time the railways will directly buy power from a supplier.

    lUS federal agencies have committed a total of US$ 4 billion for projects and equipment sourcing, one

    of the biggest deals for the growing renewable energy sector in India.

    lA memorandum of collaboration (MoC) was signed in New Delhi on January 20, 2015 between the

    Indian Institutes of Technology (IITs) and Oil & Natural Gas Corporation (ONGC) to work towards a

    collective research and development (R&D) programme for developing indigenous technologies to

    enhance exploration and exploitation of hydrocarbons and alternate sources of energy.

  • | 17th Annual Report | 31

    The Present situation of discoms in India

    India may have its share of infrastructure problems, but the situation in the country is better off than the

    rest of South Asia when it comes to electricity supply.

    New data from the World Bank based on a survey of 9,281 firms shows that on average, Indian

    companies witnessed 13.8 electrical outages every month, compared to 17.2 power cuts on average in

    the rest of South Asia. What's more, the duration of the outages was two hours on average in India,

    compared to 2.4 hours in the rest of the region.

    While the global average for electrical outages was lower than in India, the average duration of an

    electrical outage worldwide is 4.5 hours, far longer than what Indian companies experience.

    If one calculates the total duration of power outages from the data, it emerges that Indian firms – which

    experience a total of 27.6 hours of power cuts every month – is not so badly off compared to the rest of the

    world, where the power usually goes off for around 24.8 hours every month on average.

    It's also significantly better than the rest of South Asia, where the power cuts add up to 41.3 hours every

    month.

    Almost all local discoms in India are financially stressed because of electricity subsidies, power theft,

    weak bill collections, lack of legal recourse against industrial defaulters etc. A slow down in the economy

    has resulted in weak industrial and domestic demand as well

    Distribution companies across India are cash strapped, adding Rs 70,000 crore to their cumulative losses

    every year. No state except Kerala has issued a tender for a power purchase agreement since March

    2013. The reasons being, weak distribution companies and lack of power transmission.

    Not a single transmission project was awarded to a private company last year while the project backlog at

    state-owned Power Grid Corporation kept climbing. Projects adding up to Rs 20,000 crore, meant for

    competitive bidding, are yet to be tendered. Power Minister Piyush Goyal last week, promised to put

    transmission projects worth Rs 1 lakh crore up for auction to private players.

    South India is facing a power crunch due to transmission snags. High consumption states like Haryana,

    Uttar Pradesh and Bihar have days of power cuts.

    These states are not on board for central schemes. Financial restructuring, for distribution companies,

    was not allocated any grant in the Budget as the NDA government plans to roll out smart grids. "Pumping

    coal and gas solves one side of the problem. There are no buyers for surplus power. Distribution

    companies are in dire need of revival.

    India is a power deficient country and even though it is claimed that we will be power surplus in 2019.

    We definitely need to ramp up our generation capacity as well in expectation of strong industrial demand

    if the Make In India campaign is a success.

    The above anticipated All India power supply position indicates that the country is likely to experience a

    peak shortage of 2.6% and energy shortage of 2.1% only, despite very high shortages likely to be

    experienced by Southern Region.

    The peaking shortages are likely to prevail mainly in the Southern and North-Eastern Regions to the tune

    of 19.8% and 4.0% respectively. Surplus energy is anticipated in the order of 2.0% and 3.3% in the

    Eastern and Western Regions respectively.

  • | 17th Annual Report | 32

    Annexure 4

    The Important Events and announcements in the Electricity Sector in India during 2014-15

    Sl No Date Events / Announcements

    01 27.05.2014 Shri Piyush Goyal take over as Hon'ble Minister of State with

    Independent Charge for Power, Coal and New & Renewable Energy in

    the Governmentof India

    02 26.06.2014 Ministry of Power has approved 9 new projects with an aggregate cost of

    over Rs.12,500 crore to fast track building of high capacity inter-state

    transmission lines, These transmission projects will benefit several

    states such as Haryana, Chhattisgarh, UP, MP, Maharashtra etc, by

    enabling high capacity 765kv lines carrying up to 2100MW each apart

    from construction of new 765/400kv substations. The projects will help

    evacuate power from central generating stations such as 660MW Sipat

    of NTPC, 1600MW Gadarwara, private sector generating stations such

    as Sassan UMPP (1320 MW). Congestion will also be reduced in

    Haryana Region by the strengthening of the Northern Transmission

    system. Projects which will be developed through tariff based

    competitive bidding process inviting participation from all Bidders

    including private sector.

    03 01.07.2014 The National Democratic Alliance government has appointed the former

    Cabinet Minister, Suresh Prabhu, as the head of a high-level panel on

    power revamp — “Advisory Group for Integrated Development of Power,

    Coal and Renewable Energy. Mr. Prabhu will be assisted by three former

    bureaucrats — Pratyush Sinha, Anil Baijal and Partha Bhattacharya

    04 21.11.2014 Power Grid board approves two projects worth Rs 10.47 bn. The board

    has given approval for sub-station works associated with System

    Strengthening in Southern region for import of power from Eastern

    Region' at an estimated cost of Rs 9,724.2 million, with commissioning

    schedule of 36 months from the date of investment approval with best

    efforts matching with the transmission line being implemented under

    Tariff Based Competitive Basis (TBCB);

    The other approval is for common transmission scheme associated with

    ISGS Projects in Nagapattinam / Cuddatore Area of Tamil Nadu – Part-

    A1(b)' at an estimated cost of Rs 742.9 million, with commissioning

    schedule of 30 months from the date of investment approval with best

    efforts matching with the transmission lines being implemented under

    Tariff Based Competitive Basis (TBCB).

    05 21.11.2014 The Central government approved an outlay of Rs.43,033 crore to fund

    an ambitious initiative to supply electricity through separate feeders for

  • | 17th Annual Report | 33

    agricultural and rural domestic consumption, aimed at providing round-

    the-clock power to village households.

    In addition, the cabinet also approved spending Rs.32,612 crore on an

    integrated power development initiative, which involves strengthening

    sub-transmission and distribution systems,

    06 01.12.2014 Hon'ble Mrs. Justice Ranjana Prakash Desai assumed the charge of

    office of Chairperson, Appellate Tribunal for Electricity

    07 19.12.2014 Bill to amend electricity Act tabled in Lok Sabha

    08 08.01.2015 The government has abandoned the bidding process of two ultra mega

    power projects (UMPPs) in Odisha and Tamil Nadu

    The Developments in Electricity Sector in India after 1st April 2015

    Sl No Date Events / Announcements

    1 05.05.2015 To promote competition in the power sector, the power ministry issued

    the amended guidelines to enable utilities to use the standard bidding

    documents for inviting tariff-based bids for supply of electricity to those

    who are being notified.

    As per the amendments, the existing provision of restriction of maximum

    seven bidders in model request for qualification (RFQ) has been

    removed to spur competition. Due to the change in coal policy, wherein

    concessional coal is available, the contract period for long-term

    procurement has been changed from the current 25 years to 7 years and

    above up to a period of 25 years from the date of commencement of

    supply of power with provision of extension of five years at the option of

    either party in accordance with the power supply agreement.

    2 07.05.2015 Parliamentary Standing Committee on Energy has submitted its report

    on The Electricity (Amendment) Bill, 2014 to the Parliament on 7th May,

    2015.

    3 14.05.2015 The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi,

    gave its approval for signing of the Memorandum of Understanding

    (MoU) between India and the Republic of Korea on cooperation in the

    field of electric power development and new energy industries. This MoU

    will provide an enabling framework for establishing contact between

    governmental entities and public authorities of both countries in the field

    of electric power development and new energy industries. It would also

    facilitate exchange of knowledge and experience aiming to create

    opportunities for investment in both countries.

    Sl No Date Events / Announcements

  • | 17th Annual Report | 34

    Annexure - 5

    Electric Power supply situation in Tamil Nadu in the year 2014 – 15.

    Tamil Nadu is the fourth largest state of India, and contributed 8.1 per cent to India's gross domestic

    product (GDP) in 2013-14. Gross state domestic product (GSDP) of Tamil Nadu grew at a compound

    annual growth rate (CAGR) of 16.3 per cent between 2004-05 and 2013-14, reaching US$ 141.1 billion in

    2013-14. Per capita GSDP of US$ 2,059.3 (at current prices) is nearly 48.2 per cent higher than the

    national average of US$ 1,389.6.

    Tamil Nadu is by far the number one state on development parameters, says a comparative study on

    states released by Assocham. The southern state has ranked among the best performing states (BPS) in

    terms of eight out of nine development parameters including economy, power, roads and health. But for

    education, Tamil Nadu remained among the best performing states in all other parameters. Kerala was

    No 2 and was best performing states in overall development, income and removing inequality, health and

    roads. The data relating to these parameters used in the study were compared between 2009-2011 and

    2012-14.

    Tamil Nadu has one of the better power utilities in the country and the power sector in the State has grown

    manifold in capacity generation. The State has a healthy per capita power consumption of 1065 units.

    The plant load factor, an important measure of efficiency, is higher in Tamil Nadu when compared to other

    States. Transmission and Distribution loss in Tamil Nadu is very low when compared to most of the other

    States due to its efficient network. Tamil Nadu has the third largest established power generation capacity

    in the country. Tamil Nadu generates a significant proportion of its power needs from renewable sources

    with wind power installed capacity at over 7154 MW, accounting for 38 per cent of total installed wind

    power in India. The present demand of power in Tamil Nadu is around 13,000-13,500 MW.

    Installed capacity (in MW) of power Utilities in Tamil Nadu as on 31/03/2015

    As per the CEA's Executive Summary of Power Sector for March 15, the total installed capacity

    generation of Tamil Nadu including allocated shares in Joint and Central sector utilities as on 31.03.15 is

    22564 MW which includes State share(7598 MW), central share (4948 MW) and Independent power

    producers (10017MW) which includes Renewable energy of (7952MW)

    THERMAL

    Coal Gas Diesel Total Nuclear Hydro Res Grand total

    State 4770 523 0 5293 0 2182 123 7598

    Private 1150 503 412 2065 0 0 7952 10017

    Central 3962 0 0 3962 987 0 0 4948

    Total 9882 1026 412 11320 987 2182 8075 22564

    Around 70 per cent of the demand would be met from the state's own sources and its share of power

    from the central pool. The rest would be purchased from other sources.

    The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) will get around 37 per cent or

    34,253 million units from its own power plants, while 33 per cent or 30,534 million units from the

    central power plants and 6.64 per cent or 6,082 million units from renewable energy, mostly wind

    power.

  • | 17th Annual Report | 35

    The state government has tied up with 11 private power companies for long term supply for about 3,330

    MW at a levellised tariff of Rs 4.91 a unit, including 150 MW from Jindal and 74 MW from OPG.

    The state has also entered into short term agreements to procure 1,393 MW at Rs 5.50 a unit from power

    producers within the state. It has entered into short term purchase agreements for about 773 MW at Rs

    4.93 a unit from outside the states but sources 150 MW because of inadequate transmission

    infrastructure

    Actual power supply position in terms of Energy Requirement vis-a- vis Energy availability of Tamil Nadu

    during the year 2014-15 was as follows:

    Requirement (MU) Availability Deficit (MU) Deficit in %)

    95758 92750 -3008 -3.1

    Actual power supply position in terms of Peak Demand vis-a- vis Peak Met in Tamil Nadu during the year

    2014-15 was as follows

    Peak Demand (MW) Peak Met (MW) Deficit (MW) Deficit in %)

    13707 13498 -209 -1.5

    With an increase in generation capacity, the state's power deficit has come down to 3.1 per cent in 2014-

    15 from 17.5 per cent in 2012-13, when the state faced long hours of power cut, according to latest Central

    Electricity Authority (CEA) data. The state's power deficit has come below the national average of 3.6 per

    cent for the first time since 2010-11. According to CEA data, the energy requirement in 2014-15 was

    95,660 million units (MU) of which the availability was 92,652 MU leaving a deficit of 3.1 per cent.

    In the last fiscal year, the state faced a total energy shortfall of 5,526 MUs against the total requirement of

    93,508 MUs. When the districts were facing power cuts ranging from 10 to 12 hours a day in 2012-13, the

    state was facing a overall shortfall of 16,141 MUs that is 17.5 per cent deficit in total requirement of 92,302

    MUs. Between 2012-13 and 2014-15, the state's annual energy requirement has gone up by 3.6 per cent

    while the energy availability has gone up by 21.6 per cent.

    CEA report indicates that Tamil Nadu is likely to experience an energy shortage of 4.4% and peak

    shortage of 5.4% only, despite very high shortages likely to be experienced by other states in southern

    region.

    Vision Tamil Nadu 2023

    Vision Tamil Nadu 2023 presents the growth strategies on various fronts. On the energy front, reforms will

    be implemented in a progressive manner, so that benefits of competition and innovation are delivered to

    the consumers. The total investment in the energy sector is estimated to be `4,50,000 crore. The major

    share of investments amounting to `2,30,000 crore will be utilized to augment the power generation

    capacity in the State. Generation projects of capacity 20,000 MW are expected to be added to the State

    grid. Of this, atleast 5,000 MW will be added before the year 2017 to make good the shortage of peak

    power and energy shortage that the State faces at present. Significant investments to the tune of

    `2,00,000 crore will be made in the development of transmission and distribution sector and ̀ 20,000 crore

    in Smart grid.

  • | 17th Annual Report | 36

    Annexure 6

    The Important Events and announcements in Electricity sector in Tamil Nadu during the

    year 2014-15

    Sl No Date Events / Announcements

    1 28.05.2014 Chief Minister was announced no power cut for Industries and

    commercial units from June 1, 2014

    2 09.06.2014 Sri. S Akshyakumar, Former Managing Director – TANTRANSCO was

    appointed as Chairman of Tamil Nadu Electricity Regulatory

    Commission (TNERC).

    3 12.06.2014 Chief Minister was inaugurated power projects worth Rs. 394 crores.

    This includes 51 Substations in various parts of Tamil Nadu and setting

    up of a 110KV power station in Tiruchirapalli District.

    4 17.06.2014 TANGEDCO has achieved new load peaks of performance on June 17,

    2014 by supplying 292.233 Million Units of electricity and catered to a

    maximum demand of 13,665 MW.

    The previous highest in energy supplied was 289.659 MU on June 14,

    2014 and 289.541 MU on April 23 and in terms of demand the previous

    high was 13,091 MW on May 16, 2014.

    5 23.09.2014 R&C Measures for HT Industries which was relaxed from 1st June 2014

    reintroduced from 23.09.2014

    6 02.12.2014 K Gnanadesikan, CMD of TANGEDCO had appointed as new Tamil

    Nadu Chief Secretary

    7 02.12.2014 Dr. M. Sai Kumar, IAS, was appointed as Chairman cum Managing

    Director of TANGEDCO

    8 11.12.2014 Tamil Nadu Electricity Regulatory Commission(TNERC) announced a

    tariff hike for all consumers including domestic consumers with effect

    from 12.12.2014

    9 19.12.2014 Tamil Nadu gets Rs. 587 crore loan from German bank. German

    development bank KfW has sanctioned a loan of 76 million euros

    (587crore) to the Tamil Nadu government for setting up inter-state

    transmission lines.

    10 23.12.2014 Tamil Nadu Chief Minister,O. Panneerselvam has sent a letter to Prime

    Minister Narendra Modi requesting to withdraw the Electricity Act 2014

    Amendment Bill till a prop