Tamil Nadu government subsidy to TANGEDCO
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A senior official pointed out that if all the government departments pay the money pending to Tangedco, the discom will be able to pay off its debts to power generators.

TNERC approves ₹8876.36 crore subsidy for TANGEDCO in 2021-22


Tamil Nadu Electricity Regulatory Commission (TNERC) has approved ₹8876.36 crore as subsidy to be paid by the state government to TANGEDCO provisionally, for the financial year 2021-22. The TNERC has also issued directives to TANGEDCO to get details about hut connections and agriculture load.

Of the total amount, ₹3,469.02 crore will go towards providing 100 units of free power to domestic connection, and ₹4,808.31 crore towards providing free power to all types of farmers. Under the provision of free power, the hutment consumers would get ₹181.38 crore, and power loom weavers would get ₹378.24 crore.

TANGEDCO in its letter dated September 24,2021, stated that the government of Tamil Nadu has provided ₹8,834.68 crore in the budget estimate for the year 2021-22, towards tariff subsidy payable to TANGEDCO.

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The subsidy for domestic consumers claimed by TANGEDCO for 2021-22 is ₹3,469.02 crore, and the subsidy approved by the commission for FY 2019-20 and FY 2020-21 are ₹3257.92 crore and ₹3,377.37 crore, respectively.

A provisional subsidy of ₹3279.30 crore was sanctioned for TANGEDCO for 2019-20. Subsequently, TANGEDCO submitted their actual slab-wise consumption and reconciliation statements for 2019-20, and claimed a revised subsidy of ₹3257.92 crore.

“The Commission has approved the same, and the balance subsidy of ₹21.38 crore for 2019-20 has to be adjusted while approving the provisional subsidy for 2021-22,” said the TNERC.

The TNERC has asked the state government to release not less than ₹4,490 crore to TANGEDCO as part of the total subsidy. The remaining must be paid from October 1, 2021 to March 31, 2022.

TNERC has also asked TANGEDCO to reconcile its subsidy allowed with the actual consumption and revenue assessed for 2020-21, and to furnish the report on or before the end of this month. While furnishing the actual consumption details, it should be ensured that slab-wise consumption is furnished correctly.

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TANGEDCO is directed to produce relevant documents in proof of their claim, in respect of having fixed meters for HT lift irrigation co-operative societies, and for the other applicable charges like compensation charges for low power factor, etc., for prudence check by the commission.

TANGEDCO shall furnish the actual connected load of agricultural consumers as on April 1, 2021 immediately, and the connected load as on October 1, 2021 before December 31.

TNERC has directed the Government of Tamil Nadu to provide subsidy in advance in the manner specified for 2021-22, to compensate the shortfall in revenue to TANGEDCO, consequent to the extension of free supply/reduction of tariff as per the policy direction.

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