1
Tamil Nadu Electricity Regulatory Commission
No 19A, Rukmini Lakshmipathy Salai, Egmore, Chennai - 600 008.
Phone:044-28411376, Website:http://www.tnerc.tn.nic.in/
Public Notice
1. The Tamil Nadu Generation and Distribution Corporation Ltd. (TANGEDCO) had last
year filed its application before the Commission for final true-up and approval of
Aggregate Revenue Requirement (ARR) for the year 2010-11, provisional true-up and
approval of ARR for the year 2011-12, Annual Performance Review (APR) for the year
2012-13 based on estimates and its Multi Year Tariff petition for 2013-14 to 2015-16
along with tariff revision for 2013-14. Based on this petition and after considering views
of the State Advisory Committee, the public and other stakeholders, Tamil Nadu
Electricity Regulatory Commission had passed the Order in which the Aggregate
Revenue Requirement for the 2nd Control Period i.e. 2013-14 to 2015-16 was determined
and revenue gap and tariff determination for 2013-14 was carried out.
2. As per provisions of Section 64 of the Electricity Act 2003, it is incumbent upon the
Licensee to make an application to the State Regulatory Commission for determination of
tariff in such manner as may be determined by Regulations framed by the Commission.
Regulation 5 of the Tamil Nadu Electricity Regulatory Commission (Terms and
Conditions for Determination of Tariff) Regulations, 2005 lays down that licensee is
required to file tariff application on or before 30th November each year, with the
Commission. Accordingly TANGEDCO was expected to file a petition for the final true
up and approval of ARR for 2011-12, provisional true up for 2012-13, APR for 2013-14
and ARR and Tariff petition for 2014-15 by 30th November 2013. However TANGEDCO
failed to file the petition before the said deadline.
3. Hon’ble APTEL vide it’s judgement dated 11th November, 2011 in the matter OP No. 1
of 2011, has directed the State Commissions that
“In the event of delay in filing of the ARR, truing-up and Annual Performance Review,
one month beyond the scheduled date of submission of the petition, the State Commission
must initiate suo-motu proceedings for tariff determination in accordance with Section 64
of the Act read with clause 8.1 (7) of the Tariff Policy.”
4. TNERC Tariff Regulations 2005 under Regulation 6 stipulates that
“(8) In case the licensee does not initiate tariff filings in time, the Commission shall
initiate tariff determination and regulatory scrutiny on suo motu basis.”
5. Considering the directives of the Hon’ble APTEL, the National Tariff Policy and in
exercise of the powers vested in it under the Section 62 and Section 64 of the Electricity
Act, 2003 (Act) and the Tariff Regulations 2005, TNERC has decided to take up the
matter of Determination of ARR and Tariff for 2014-15 by initiating suo-motu
proceedings. 2
6. As per Financial Restructuring Plan (FRP) requirement, the tariff is to be revised every
year covering the ARR. Under such circumstances TNERC has decided to proceed with
the suo-motu determination of ARR and Tariff for FY 2014-15 on the basis of
information available from TANGEDCO’s submissions to the Commission. With the
available information with the Commission, the following decisions have been taken by
the Commission:
a. The 2011-12 and 2012-13 expenses will be provisionally trued up based on the
audited accounts.
b. The APR for 2013-14 and ARR for FY 2014-15 will be taken up based on
available information and audited accounts for FY 2011-12 and 2012-13.
c. The revenue gap and regulatory asset determined will be provisional in nature and
will be trued-up in the next year.
7. Hence, notice is hereby given to all that TNERC now has decided to proceed on suo-motu
basis on the provisional true up for 2011-12 and 2012-13, APR for 2013-14 and ARR and
Tariff determination for 2014-15.
8. Based on the information available, Commission has provisionally determined Aggregate
Revenue Requirement of Rs.39,818 Cr and total revenue of Rs. 32,964Cr at existing tariff
(revenue from sales and Non Tariff Income) for 2014-15. Componentwise details of the
ARR and revenue at existing tariff for FY 2014-15 are as below and the Commission has
arrived at a revenue gap of Rs.6854 Crores for FY 2014-15.
Table 1: Componentwise ARR and determination of revenue gap for 2014-15 - in Rs. Crore
Particulars Approved in June
2013 Tariff Order
Provisionally Determined
by the Commission
Expenses in respect of Generation 8,851 12,687
Power Purchase Cost 17,949 17,946
Annual Transmission Charges payable to
TANTRANSCO 2,850 2,259
Operation and Maintenance Expenses 4,068 4,304
Depreciation 435 661
Interest on Long term loan 1,740 1,956
Other Debits & extra ordinary items 26 6
Reasonable Return / Return on Equity 0 -
Interest on Working Capital 0 -
Gross Aggregate Revenue requirement 35,918 39,818
Revenue
Revenue from sale of power (including 32,238 3
Particulars Approved in June
2013 Tariff Order
Provisionally Determined
by the Commission
subsidy)
NTI and Other Income 1,021 726
Total Revenue 32,964
Revenue Gap 6,854
Considering the above revenue gap of Rs. 6,854 Cr, Commission proposes to bridge this gap
through tariff hike across all consumer categories. The following table summarizes the
incremental revenue and the revised gap for FY 2014-15. The proposed tariff schedule for FY
2014-15 is appended as Annexure I.
Table 2: Revised revenue gap after tariff revision for FY 2014-15 - in Rs. Crore
Particulars Provisionally Determined
by the Commission
Gross Aggregate Revenue requirement 39,818
Less: Other income and Non-Tariff Income 726
Net Revenue Requirement 39,092
Revenue from Tariffs including subsidy (at existing tariff) 32,238
Revenue Gap (at existing tariff) 6,854
Incremental revenue through tariff revision 6,805
Revised Revenue Gap (at revised tariff) 49
9. The summary of the ARR for 2014-15 is available on the website of the Commission
www.tnerc.tn.nic.in. Any person who intends to file objections / suggestions on the
above ARR determination, may file so with the Secretary, Tamil Nadu Electricity
Regulatory Commission (TNERC), 19-A, Rukmini Lakshmipathy Salai, Egmore,
Chennai 600 008 in person or through post so as to reach by 23-10-2014.
10. The objections/suggestions should be filed with the Hon’ble Commission in three copies
and should carry full name and postal address of the person sending the objection. If the
objections/suggestions are filed on behalf of an organisation / association / category of
consumers etc., it should be so mentioned. The person intending to file
objections/suggestions should also mention if they want to be heard in person. TNERC,
after perusing the objections/suggestions received to this notice may invite such persons /
organisations as it considers appropriate for the public hearing on the dates to be notified
by the Commission.
Secretary
Tamil Nadu Electricity
Regulatory Commission Demand
Charges
Energy
Charges
Demand
Charges
Energy
Charges
(Rs / kVA /
Month)
(Ps / Unit) (Rs / kVA /
Month)
(Ps / Unit)
1 Industries I A 300 550 350 722
2 Railway Traction I B 250 550 300 722
3 Govt. and Govt. aided educational
institution
II A 300 450 350 722
4 Private educational institutions and hostels
run by them
II B 300 550 350 722
5 Commercial III 300 700 350 805
6 Lift Irrigation (*) IV 0 350 0 722
7 Temporary Supply V 300 950 350 1100
(*) Tariff charges are to be borne by the Government of Tamil Nadu as per the existing policy
ANNEXURE - I
PROPOSED TARIFF
TARIFF FOR HIGH TENSION CONSUMERS FOR FY 2014-15
Sl.No Category Tariff EXISTING TARIFFFixed
Charges
Energy Charges Fixed Charges Energy
Charges
(Rs / bi
monhtly)
(Ps / Unit) (Rs / bi monhtly) (Ps / Unit)
1 Domestic /Residential I A
0-100 units bi monthly
0-200 units bi monthly 20 280 30 325
0-200 units bi monthly 300 350
201-500 units bi monthly 400 460
0-200 units bi monthly 300 350
201-500 units bi monthly 400 460
501 and above bi monthly 575 660
Huts (Till Installation of Energy Meters) (*) I B
Huts (On Installation of Energy Meters) (*) 0 430 0 495
3 Bulk supply I C 100 400 120 460
4 Public Lighting and Water Supply II A 0 550 120/Kw 635
5 Govt. and Govt. aided Educational Institutions II B (1) 100 /kW 500 120/Kw 575
6 Private educational Institutions II B (2) 100 /kW 650 120/Kw 750
Places of Pub. Worship II C
Upto 120 units bi-monthly 500 575
above 120 units bi-monthly 500 575
Cottage and Tiny Industries III A (1)
0-500 units bi monthly 350 400
501 units and above bi monthly 400 460
Power Looms III A (2)
0 to 250 units per month or 0 to 500 units
bimonthly (*) 100/kW 450 120/kW 520
0 to 250 units per month or 0 to 500 units
bimonthly (*) 450 520
251 to 500 units per month or 501-1000 units bi
monthly 500
501 to 750 units per month or 1001-1500 units bi
monthly 500
From 751 units and above per month or 1501
units and above bi monthly 500
Industries III B
(for all units) 60 /kW 550 70/kW 722
11 Agriculture (Till Installation of Energy Meters)
(*)
Agriculture (On installation of Energy Meters)
(*) 0 280 0 322
Commercial V
For consumer with consumption 50 units per
month or 100 units bimonthly 430 495
(*) Tariff charges are to be borne by the Government of Tamil Nadu as per the existing policy
Rs.300/kW/
per month 1050 Rs.345/kW /per
month
Rs 2500 / HP / Annum
(borne by the Govt fully as
subsidy)
(i) Consumers who consume upto 250 units per month (or) 500 units for two months
Rs.2875/HP/Annum
(to be borne by the Govt
fully as subsidy)
For consumers with consumption above 50 units 140/kW
per month or above 100 units bimonthly (for all
units)
VI
20 260
1210
40/kW
700
IV
120 /kW
100/kW 120/kW
TARIFF FOR LOW TENSION CONSUMERS FOR FY 2014-15
Sl.No Category Tariff
805
Consumption upto 50 units monthly or 100 units bi-monthly
Consumption of 251 units and above per month (or) 501 units and above for two months
Consumption from 51 units to 100 units per month or 101 unitsto 200 units for two months
Consumption of 101 units to 250 units per month (or) 201 units to 500 units for two months
30
30 300
EXISTING TARIFF PROPOSED TARIFF
575
2
40
50
100 / kW 120/kW
40
Rs.290/Service/bi-monthly
(to be borne by Govt fully as
subsidy)
30 / kW
ANNEXURE - I
Rs.250/Service /bi-monthly
(borne by the Govt fully as
subsidy)
13
9
8
7
10
12
(ii) For consumers who consume 251 units and above per month (or) 501 units and above
for two months
Temporary supply for temporary activities,
construction of buildings and lavish
illumination
