The Hindu Business Line : Pay tariff subsidy, power regulator tells TN

Based on the representation by the TNEB, the commission has estimated the domestic consumption at 12,036 million units, a 10 per cent increase over that in 2006-07.

Our Bureau

Chennai, March 24

The Tamil Nadu Electricity Regulatory Commission (TNERC) has directed the State Government to pay a tariff subsidy of Rs 1, 567.11 crore to the Tamil Nadu Electricity Board for 2008-09.

The tariff subsidy, to be paid in advance, is to compensate the electricity board for the shortfall in its revenue following the Government’s decision to supply free power or power at lower rates to certain segments of the consumers.

According to the order dated March 13, 2008, the net subsidy for the year is Rs 1,561.30 crore after adjusting for an excess subsidy of Rs 5.81 crore in 2007-08. This is against the TNEB’s claim for a subsidy of Rs 1,623.11 crore

Some of the major segments of consumers to which the TNEB supplies free power include farmers, powerlooms, handlooms and huts. It also supplies power at reduced rates to domestic consumers, places of public worship and for streetlights and public water supply.

According to the TNEB, it supplies free power to farmers through 8.27 crore connections as of March 31, 2008, which is a 1.3 per cent increase over the number of connections as of March 31, 2007. Apart from this general category it also supplies free power to a connected load estimated at about 14.99 lakh hps to farmers under the Self Financed Scheme, under which farmers pay Rs 250 a hp for getting a connection.

Based on the representation by the TNEB, the commission has estimated the domestic consumption at 12,036 million units, a 10 per cent increase over that in 2006-07.

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