STOP COLLECTING HIGHER CHARGES FOR NEW CONNECTIONS

…tells Tamil Nadu Electricity Regulatory Commission to Tangedco, adding that the extra charges should be adjusted in consumers’ subsequent bills

CHENNAI: After many consumers complained over the collection of higher development charges to underground cables (UG) in places with overhead cables (OH), the Tamil Nadu Electricity Regulatory Commission (TNERC) has directed the Tamil Nadu Generation and Distribution Corporation (Tangedco) to immediately stop collecting higher charges and refund it to the consumer in the way of adjusting with their subsequent bills.

“The application software should be corrected accordingly with immediate effect and no further collection of development charges is permitted with existing arrangements. The extra development charges collected so far, by way of wrong applicability of the UG development charges of the OH service connections, should be refunded to the applicants or consumers immediately or treated as advance consumption charges and reported to the commission,” the commission said in a letter to the Tangedco CMD on a petition filed by Coimbatore Consumer Cause.

Consumers applying for new EB connections in the municipal corporations limits across the State including Chennai, Coimbatore Madurai and Tiruchy were, by default, asked to pay development charges applicable for the UG lines even in places with only OH lines. The charges payable for a threephase domestic connection is Rs 5,110/kilowatt, and Rs 2,040/kW for an OH connection.

But till now, consumers were told to pay Rs 2,860/OH connection and Rs 7,155/connection for UG cables. And this is how it’s happening: Suppose a consumer applies

The commission said that the consumer asking for a service connection either with the OH connection wire or with UG connection cable on their premises was not the criteria to decide the applicability of development charges

for a new connection with a 5-kW load. This consumer has to pay an overall charge, including a developmental charge of Rs 18,647 for OH cable. However, the consumer is asked to pay Rs 33,972 for the UG cables even if his/her locality has only OHT lines.

When consumers questioned the collection of higher charges, Tangedco officials blamed a software glitch and asked them to pay the same amount to get the new connection. TNERC has clarified that the collection of higher charges more than the tariff authorised under the non-tariff related miscellaneous charges order dated June 30, 2023 should be stopped immediately.

“Only when the work of LT extension from the DT to the premises of the applicant is involved with UG cables, the development charges under UG cable is payable. Such systems where the LT networks (to which the applicant is connected) are established with UG cable are predominantly in service only in the Chennai area.

In districts like Salem, Erode, Coimbatore, Madurai, Tirunelveli, Tiruchy, etc., the HT feeders are laid with UG cable. However, the majority of the LT network of those feeders still remain in the OH system only. In such a case, only the development charges for OH are applicable,” it said.

The commission added that the consumer asking for a service connection either with the OH connection wire or with UG connection cable on their premises was not the criteria to decide the applicability of development charges, as it was carried out at the expenses of consumer and will be maintained by the consumer as per sub-regulation 29 (17) of the Distribution Code, as amended.

“Therefore when the LT lines are OH and the consumer service connection is UG, tapped from existing poles, only the development charges of OH are applicable. Only when the service cable is tapped from the pillar box of the UG cable system, the development charges for UG are applicable,” it clarified.

TNERC said that a development charge was approved instead of estimate cost towards extension of supply to the consumer.

“If the extension of distribution main involves OH, only the development charges of OH to be collected. If the extension of distribution main involves UG, then development charges of UG to be collected. If it’s mixed, development charges to be collected proportionately,” it noted.

The extra development charges collected so far, by way of wrong applicability of the UG development charges of OH connections, should be refunded to consumers immediately or treated as advance consumption charges and reported to the commission — TNERC report