TAMIL NADU ELECTRICITY REGULATORY

COMMISSION
----------------------------------------------------------------

Determination of tariff for

generation, intra-state
transmission and distribution
--------------------------------------------Order No. 3 of 2010 dated 31-07-2010
(effective from 01-08-2010)

TAMIL NADU ELECTRICITY REGULATORY COMMISSION

(Constituted under section 82 (1) of Electricity Act 2003)
(Central Act 36 of 2003)

PRESENT:

Thiru. S. Kabilan

Chairman

Thiru. K.Venugopal

Member

Order No. 3 of 2010, dated 31-07-2010

In the matter of:

Determination of tariff for generation, intra-State

transmission and distribution.

In exercise of power conferred by Section 62 and Section 86

(1) (a) of the Electricity Act 2003, (Central Act 36 of 2003), and after taking into
account the stipulations in the National Electricity Policy and the Tariff Policy,
TNERC (Terms and conditions for determination of tariff) Regulations 2005,
TNERC (Terms and Conditions for Determination of Tariff for Intra state
Transmission / Distribution of Electricity under MYT Framework ) Regulations,
2009, and after considering the views of the State Advisory Committee meeting
held on 11-03-2010 (Annexure I) in accordance with section 88, after examining
the comments received from the stakeholders (Annexure II) and after considering
suggestions and objections received from the public during the public hearings
held on 30-03-2010, 08-04-2010,13-04-2010 and 15-04-2010 (Annexure III) as
per Section 64, the Commission passes this order for determination of generation
tariff, intra-State transmission tariff and Retail tariff.
Sd/(K.Venugopal)
Member

Sd/(S. Kabilan)
Chairman

CONTENTS

Para
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
2

Description
Introduction
Preamble
Applicability of Order
Tariff Filing
Procedure Adopted
An Overview of TNEB
Operational Performance
Commercial and Financial Performance
Compliance of provisions under Section 131 of Electricity
Act 2003

Page No.
1
1
2
2
3
5
6
7
7

Issue-wise Summary of Views, Comments and

Suggestions, TNEB response and Commissions
rulings

General
Quality of supply
AT & C Loss
Metering
Cost of Supply
Subsidy and Cross Subsidy
Generation
Power Purchase
Regulatory Asset
Tariff for HT Industries
Tariff for HT II A Educational Institutions and
Recognized Hospitals
Tariff for HT II B Places of Public Worship
Tariff for Domestic
Tariff for Hut
Tariff for LT Bulk Supply
Tariff for Street Light and Water Supply
Tariff for LT Educational Institutions, Recognized Hospitals
etc

8
11
11
12
13
14
15
16
17
17
19

2.18

Tariff for Places of public worship

23

2.19

Tariff for Cottage Industries

23

2.20
2.21

Tariff for Power Loom

Tariff for LT Industries

24
24

2.22

Tariff for LT Agriculture

26

2.23

Tariff for LT Commercial

27

2.24

Tariff for LT Temporary Supply

29

2.25

Free / Concessional Tariff

29

2.26

Request for separate category

30

2.27

TNEBs Response

30

2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16
2.17

19
19
21
21
22
22

Para

Description

Page No.

2.28

TNEBs response on the petition for Southern Railway

36

2.29

Commissions Views on the objections/comments /

suggestions

41

2.30

Commissions Suggestions

3
3.1

Energy Requirement
Sales Forecast

50
58
58

3.2

Commissions Sales Projections

64

3.3
3.4

Transmission and Distribution Loss

Commissions Rulings and Directives on T & D Loss/
Energy Audit in earlier Tariff Order and TNEBs response

85
87

3.5

Assessment of Unmetered consumption

89

3.6

Commissions Rulings on T & D Loss

90

3.7

Net Energy Requirement

92

Energy Availability

94

4.1

Own Generating Station

94

4.2

Auxiliary Consumption

98

4.3

Capacity addition in Thermal Generation

101

4.4

Hydel Generating Stations

103

4.5

Wind Based Generation

106

4.6

Determination of quantum of energy to be purchased

107

5
5.3
5.4
5.5
5.6

Power Purchase
Central Generating Station
Independent Power Producers
NCES and Infirm Sources
Private Wind Mills

108
108
110
111
113

5.7

Determination of quantum of power purchase

115

5.8

Merit Order Ranking

116

5.9

Power Purchase Cost

119

Para
6
6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
6.10
6.11
6.12
6.13
6.14
6.15
6.16
7
7.1 to 7.8
7.9
7.10
7.11
7.12
7.13
7.14
8
9
9.5
9.6
9.7
9.8
9.9
9.10
9.11
I
II

Description

Page No.

Expenditure
Segregation of Accounts
Commissions Analysis and decision on allocation Of
expenditure to various functions

126

Interest on Loan Capital

Return on Equity
Depreciation
Operation and Maintenance Expenses
Repair & Maintenance
Employee Cost
Administrative and General Expenses
Allocation of O & M Expenses
Operating Expenses
O & M Expenses for new generating stations
Controllable and uncontrollable parameters
Interest on Borrowing for working capital
Other Debits
Comparison of expenses
Generation Tariff
General
Thermal Generating stations
Price of Primary Fuel
Quantity of Primary Fuel/Coal
Gross Station Heat Rate
Gross Calorific Value of coal
Secondary Fuel Oil consumption
Determination of Annual Transmission charges
Determination of Distribution Tariff
Other Income
Non tariff income
Net ARR
Revenue receipts
Revenue gap
Approach to tariff rates
Tariff schedules
Annexure
Members of 19th State Advisory Committee Meeting held
on 11-03-2010
List of Stakeholders who have submitted written
Suggestions and objections

134
140
142
145
146
147
149
150
151
152
154
155
155
157
159

126
127

159
160
164
165
166
168
170
191
197
202
203
204
204
206
206
213
237
238

III

Details of persons who deposed before the Commission

251

IV

List of Letters received from TNEB

263

Corrigendum

264

CHAPTER 1
INTRODUCTION
1.1

Preamble

1.1.1 Consequent to the enactment of the Electricity Regulatory Commission

Act 1998 (Central Act 14 of 1998), the Government of Tamil Nadu
constituted the Tamil Nadu Electricity Regulatory Commission (TNERC)
vide G.O.Ms.No.58, Energy (A1) Department, dated 17-03-1999.
1.1.2 The Commission issued its maiden tariff order under section 29 of the
Electricity Regulatory Commission Act, 1998, on 15-03-2003 based on the
petition filed by the Tamil Nadu Electricity Board (TNEB) on 25-09-2002.
1.1.3 In Para 7.2 of the order dated 15-03-2003, the Commission issued the
following rulings:
th

The Commission thus rules that the revised tariffs would be applicable from 16 March
st

2003 to 31 March 2004, and till such further time as the TNEB does not approach the
Commission for tariff revision. The Commission also directs that, henceforth, the TNEB
should submit a Tariff Proposal for any financial year by the end of December of the
previous financial year. In other words, the Commission expects the TNEB to submit a
tariff revision proposal for FY 2004-05 before the end of December 2003, in case the
TNEB desires to revise the tariffs for FY 2004-05.

1.1.4 The TNEB did not come before the Commission for revision of retail tariff
till January 2010. In the meantime, Electricity Regulatory Commission Act,
1998 was repealed and the Electricity Act 2003 (Central Act 36 of 2003)
(hereinafter called Act) was enacted with effect from 10-06-2003.
1.1.5 The

Commission

Commission

notified

(Terms

and

the

Tamil

Conditions

Nadu
for

Electricity

Determination

Regulatory
of

Tariff)

Regulations 2005 (herein after called Tariff Regulations) on 03-08-2005

under section 61 read with section 181 of the Act.
1.1.6 The Commission issued separate order on Transmission charges,
Wheeling Charges, Cross Subsidy surcharge and Additional Surcharge on

15-05-2006, based on the petition filed by TNEB on 26-09-2005 under

section 42 of the Act.
1.1.7 Since the issue of tariff order dated 15-03-2003, the Commission has
issued two tariff orders between 2003 and 2010 for wind, biomass based
power plants and other captive and co-generation plants.
1.1.8 The Commission also notified the TNERC (Terms and Conditions for
Determination of Tariff for Intra state Transmission / Distribution of
Electricity under MYT Framework) Regulations, 2009 (herein after called
MYT Regulations).
1.1.9 This is the second order of the Commission on determination of tariff.

1.2

Applicability of Order:

1.2.1 This order will come into effect from 01-08-2010. The distribution tariff
contained in this order will be valid till 31-03-2011. TNEB shall file
necessary true up petition in accordance with the Regulation and till such
time the Commission passes the tariff order amending this tariff order, this
tariff would continue to be in force.

1.3

Tariff Filing

1.3.1 Sub-Regulation (3) of Regulation 6 of the TNERC (Terms and conditions

for determination of Tariff) Regulations 2005 specifies the following:
(3) The application for determination of tariff for the existing Generating
Stations and Transmission System shall be accompanied by information in
the respective formats appended to these Regulations duly furnishing the
figures for the previous year, current year and ensuing year. The
application for determination of tariff by Distribution licensees shall be
accompanied by the information in the ARR formats appended to these
Regulations. The information for the previous year should be based on the
Audited Accounts and in case audited accounts of previous year are not
available, the audited accounts for the immediately preceding year should
be filed along with the unaudited accounts of the previous year.

1.3.2 Regulation 43 (vi) of the Tariff Regulation 2005 specifies the following:
(vi) In respect of power generated in the stations owned by the
distribution licensee and distributed by the licensee himself in his area of
supply, the generation tariff of the station shall be considered as the
transfer price to the distribution licensee which will be determined in the
licensees tariff petition itself.
1.3.3 Thus the Regulations warrant TNEB to submit applications for
determination of generation tariff, Intra-State transmission tariff and retail
tariff with the informations in distinct formats specified in the Tariff
Regulations.
1.3.4 The TNEB submitted a single application for determination of tariff with
Aggregate Revenue Requirement (ARR) for all the functions with bundled
informations on 18-01-2010 along with the fee of Rs.10.00 lakhs.
1.3.5 The Commission in letter dated 22-01-2010 communicated certain
preliminary comments on the petition and directed the TNEB to rectify the
deficiencies before admission of the petition. The Commission also
directed the TNEB to remit the balance fee of Rs.4.64 Crores as per the
provisions in the TNERC Fees and Fines Regulations.
1.3.6 The TNEB in letter dated 08-02-2010 replied to some of the points raised
in Commissions letter dated 22-01-2010. The TNEB also remitted the
balance fee of Rs.4.64 Crores.
1.3.7 The Commission admitted the petition filed by TNEB on 09-02-2010 and
registered as TP 1 of 2010.
1.3.8 The TNEB has filed a petition on 30-07-2010 praying for withdrawing the
revision of tariff for domestic consumers consuming 201 to 400 units bimonthly and 401 to 600 units bi-monthly proposed in the tariff petition filed
on 18-01-2010. This petition has been hosted in the website of the TNEB
and the Commission. This petition has been taken on records on the
Commission. The Commission heard the Chairman, TNEB on this petition.
As the prayer does not cause any injury to any other category of
consumers, the Commission allows the prayer of the TNEB.

1.4

Procedure Adopted

1.4.1 Regulation 7 (2) of Tariff Regulation specifies the following:

The applicant shall publish, for the information of public, the contents of the
application in an abridged form in English and Tamil newspapers having wide
circulation and as per the direction of the Commission in this regard. The copies
of Petition and documents filed with the Commission shall also be made available
at a nominal price, besides hosting them in the website.
1.4.2 The public notice received from the TNEB was approved and
communicated to TNEB on 23-02-2010, with a direction to arrange
publication of the notice in news papers and upload the same in the
website on 26-02-2010.
1.4.3 The TNEB published the public notice in the following newspapers on 2602-2010
(1)

The New Indian Express (English Daily);

(2)

The Deccan Chronicle (English Daily);

(3)

Dinamalar (Tamil Daily) and

(4)

Daily Thanthi (Tamil Daily)

1.4.4 The Petition was placed before the State Advisory Committee on 11-032010. The list of Members participated in the meeting are in Annexure I.
The views / comments expressed by the members are included

in

Chapter 2.
1.4.5 The Commission conducted public hearing at the following places on the
dates noted against each:
Sl.No
1
2

3
4

Place
Rani Seethai Hall, Chennai
Tamil Nadu Chamber of Commerce,
Platinum Jubilee Hatsun Auditorium,
Madurai
Nani Kalai Arangam, Mani Higher
Secondary School, Coimbatore,
Taj Kalyanamandapam, Karur Bye Pass
Road, Trichy

Date
30-03-2010
08-04-2010

13-04-2010
15-04-2010

1.4.6 The lists of participants in each public hearing are in Annexure III. The
views / comments / objections raised by the participants are discussed in
Chapter 2.
1.4.7 Based on the petition from Chief Electrical Engineer / Southern Railway an
exclusive meeting was convened on 23-06-2010.
1.4.8 As directed by the Commission on 23-06-2010 during the meeting, the
Southern Railway submitted the details in letter dated 02-07-2010. The
decision of the Commission on the prayer of Southern Railway is in
Chapter 8.
1.4.9 A meeting was convened on 29-06-2010 with the Secretaries to the
following Departments of Government of Tamil Nadu alongwith Chairman,
TNEB to obtain the views of the Government.
(1) Secretary to Government, Energy Department
(2) Secretary to Government, Finance Department and
(3) Secretary to Government, Information Technology Department
1.5

An Overview of TNEB

1.5.1

TNEB was formed as a statutory body by the Government of Tamil Nadu

(GOTN) on 01-07-1957 under the Electricity (Supply) Act 1948.

The

Board is primarily responsible for generation, transmission, distribution

and supply of electricity in the State of Tamil Nadu.
1.5.2 The TNEB has the following generation capacity at its command as on 3103-2010.
Table 1: TNEBs Generation capacity
Sl. No
1
2
3
4
I
5
6
7
II
III

Generating Stations
Capacity (in MW)
Coal based station
2970.00
Gas based station
515.88
Hydro Stations (36 stations)
2186.65
Wind Mills
17.55
Total Own generation
5690.08
Share from Central Generating Stations
3130.00
(including share from un allocated share)
IPPs
1154.16
Captive
214.00
Total External source
4498.16
Total capacity at command
10188.24

1.5.3 In addition to the above, there are 4872.22 MW of private wind mills
operating at weighted average Capacity Utilization Factor (CUF) of
19.57%. Around 65% of power generated is wheeled for captive use and
the balance is being purchased by TNEB. The TNEB is also purchasing
the surplus power from Co-generation (559.90 MW) and biomass (137.05
MW) power plants.
1.5.4 The TNEB has 1294 sub-stations, 5.37 lakh ckt kms of LT lines and 1.69
lakh ckt kms of HT lines. The TNEB is maintaining the T & D loss level at
18% since 2003-04.
1.5.5 The peak demand reached was 10180 MW on 19-03-2010. The maximum
daily consumption was 226.194 MUs on 14-05-2010.

1.6

Operational Performance

1.6.1 The TNEB has achieved the following capacity addition since last tariff
revision ordered in 2003.
(a) Gas

- 288.88 MW

(b) Hydro

-190.65 MW

The addition to capacity was not commensurate with the growth in

demand

resulting

in

wide

demand-supply

gap

and

consequent

implementation of Restriction & Control measures.

1.6.2 The TNEB has generated 26856 MUs and 26731 MUs respectively during
2007-08 and 2008-09. They have purchas ed 37572 MUs and 37982 MUs
respectively during 2007-08 and 2008-09 from central generating stations,
IPPs, private windmills, CPP, Co-gen and from traders. They have
distributed 52831 MUs and 53065 MUs respectively during 2007-08 and
2008-09.
1.6.3 The TNEBs coal based generating stations (except ETPS) were
performing well with more than the normative PLF of 80% and the PLF of
ETPS was 52% and 49% respectively during 2007-08 and 2008-09. The
gas based stations (except Basin Bridge) were performing at a of PLF
more

than

70%

during

2007-08

and

2008-09.

During

2009-10

Kovilkalappal GTPS has achieved only 57% PLF for want of adequate
quantity of gas. Valuthur GTPS achieved only 46.62% as the station was
under major shut down from 09-01-2010. The Basin Bridge station being
operated as a peaking station using naphtha as a fuel was operated at a
PLF of 6% and 17% respectively during 2007-08 and 2008-09.

1.7

Commercial and Financial Performance

1.7.1 The Boards collection efficiency is reported to be 99.81%.

1.7.2 Inspite of manifold increase in input cost there was no tariff revision for the
past seven years and there has been revenue deficit since 2003-04. The
accumulated deficit upto 2008-09 was Rs.16774.47 Crores (as per audited
accounts).
1.7.3 The GoTN has ordered reduction in the tariff ordered by the Commission
and free supply to certain categories of consumers by providing subsidy
under section 65 of the Act.
1.7.4 The maximum limit of borrowing power of the Board was Rs. 30,000
Crores and the loans outstanding as at the end of 2008-09 were Rs.20,
250.32 Crores. The gross and net assets value of the Board as at the end
of 2008-09 were Rs.25016.17 Crores and Rs. 14841.40 Crores
respectively.

1.8

Compliance of provisions under section 131 of Electricity Act 2003.

1.8.1 Tamil

Nadu

Transmission

Corporation

Ltd

(TANTRANSCO)

was

incorporated on 15-06-2009. The certificate of commencement of

business has been obtained for the TANTRANSCO on 11-12-2009.
1.8.2 Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO)
and TNEB Ltd have been incorporated on 01-12-2009.
1.8.3 The Transfer Scheme is to be issued by the Government of Tamil Nadu.
1.8.4 The TNEB has been permitted to continue to function as an integrated
utility till 15-09-2010.

CHAPTER - 2
ISSUE-WISE SUMMARY OF VIEWS, COMMENTS, AND SUGGESTIONS,
RESPONSE of TNEB AND RULINGS OF THE COMMISSION
The following are the views / objections / suggestions expressed by Members of
the State Advisory Committee and other stakeholders.

2.1

General

2.1.1 The TNERC should reject the tariff proposal filed by the TNEB for the
following reasons
(i) The Commissions directives in the earlier tariff order are either not
followed / complied with or less effective.
(ii) The TNEB could not furnish accurate figures like T & D loss. The TNEB
is fudging the figures of T & D loss so as to keep it constant.
(iii) The Commissions condition in the last tariff order that TNEB shall
approach the Commission with annual tariff plan has not been
complied with.
(iv) A commercial entity has to match its income and expenditure but the
proposal of TNEB is in deficit.
2.1.2 The revision of tariff be postponed for another one year, as the industries
have not recovered fully from the economic recession.
2.1.3 Number of LT categories may be reduced from twelve to six.
2.1.4 Demand side management publicity should be done in terms of rupees
instead of units / MWs.
2.1.5 There is discrimination in supply of electricity. While Chennai is enjoying
uninterrupted power supply, other areas are subject to power cut. There
should be uniformity in power cuts.
2.1.6 While only 50% demand of domestic industries are met, MNCs are given
uninterrupted power supply. With the present reduced supply, the
industries will not able to absorb the increase in tariff. The proposed tariff
revision may be postponed till 30% power cut is lifted.
2.1.7 Tariff should be rationalized and TNEB should be made financially viable.

2.1.8

The financial crisis faced by TNEB is a temporary phenomenon as the

TNEB will earn enough revenue by sale of excess power to neighboring
states in 2012.

2.1.9

The tariff should not be hiked now in view of high inflation, economic slow
down, global financial crisis and loss of employment.

2.1.10 The entire power from Neyveli Lignite Corporation may be retained for
Tamil Nadu without sharing with neighboring states.
2.1.11 Monthly billing and spot collection of bills is recommended.
2.1.12 Tariff hike may be considered for those consumers who are consuming
more than 3000 units.
2.1.13 Remove Restriction & Control measures with immediate effect.
2.1.14 Announced and un-announced power cut has led to loss in production and
unemployment of labour.
2.1.15 Instead of three hours power cut, load shedding etc weekly power holiday
may be introduced. Weekly power holiday for plastic, rubber and power
loom industries can be declared instead of daily power cut and shut down.
2.1.16 The period of power cut is not specified and the power cut is continuing for
more than 1 years.
2.1.17 Compact fluorescent lamp should be distributed to the public.
2.1.18 The frequent voltage fluctuations cause damage to electrical installations
and equipments.
2.1.19 Pass book should be provided for security deposits. Security deposit
should be collected for free power also.
2.1.20 Public Private Partnership in Transmission and Distribution may be
encouraged.
2.1.21 TNEBs Balance Sheet is not displayed in the website. Atleast big
consumers should be provided with a copy of balance sheet.
2.1.22 LT : HT ratio shall be 2 : 1
2.1.23 During 11th five year plan, there will be power shortage of 2141 MW and
stop gap arrangements should be made to overcome the shortages.
2.1.24 Like oil sector bonds, Central Government should provide power sector

bonds to tide over the financial crisis of state utilities.

2.1.25 While giving building plan approval, installation of solar energy units
should be made compulsory.
2.1.26 Tariff should be increased by 10% every two years instead of 80% at once
to avoid tariff shock
2.1.27 TNEB should take steps to realize the arrears of power bill from the
consumers, arrest transmission losses, pilferages, power thefts and take
steps to reduce their establishment costs.
2.1.28 Supply of free power to huts and agriculture sector should be discontinued
2.1.29 Tariff revision should be subject to scrutiny & review of National Tariff
Policy and National Electricity policy.
2.1.30 TNEB to utilize solar energy and assist consumers in setting up the same
at their buildings. To facilitate this, help desks should be established in
every circle or region and create awareness about the central government
subsidy
2.1.31 Introduce different slabs according to drawl voltage of industries as is
being done in states like A.P and Kerala so that the losses will be borne by
the consumer only and not by TNEB. Non absorption of losses by TNEB
decrease their costs
2.1.32 Why is TNEB petitioning for Rs. 1928 Crores in 2010-11 when the deficit is
Rs 9418 Crores?
2.1.33 Commission should constitute an Independent Expert Group for going into
all aspects of the functioning and finances of TNEB and come out with a
White Paper in a time bound manner.
2.1.34 TNEB should have a full time Member in charge of DSM and this activity
should be given the same importance as Generation and Distribution. The
Commission should issue clear and unambiguous directives towards this.
2.1.35 Manpower employed / MW in thermal stations at 4.50 is higher than the
benchmark of 0.96.
2.1.36 Linking of T & D losses to power procurement imposes a financial risk on
the utility

10

2.1.37 TNEB has neither apologized nor requested for condonation of inordinate
delay for filing the petition since 2003-04
2.1.38 Commission should analyse how the TNEB has arrived at Rs 300 perkVA
as demand charges and whether it is justifiable
2.1.39 TNEB is turning a blind eye to shopkeepers using wet grinders at home
with domestic tariff and selling them in their shop. All this leads to
breakdown of transformers

2.2

Quality of supply

2.2.1 The electrical transformers are burnt due to over loading.

2.2.2 No manpower is available in TNEB to maintain transformers. Helpers
should be posted.
2.2.3 The tariff hike is acceptable; but quality power is required to sustain the
business.
2.2.4 The technical mismanagement, unchecked power losses due to outdated
generation / distribution systems, utilization mismatch resulting in trips and
damage to circuitry, avoidable load shedding and breakdowns consume
the system itself. As a system, TNEBs

operation and maintenance

system is outdated and unless revamped by technical audit and planned

development to eliminate power losses, frequent tariff revisions will have
to be done . The consumers deserve to be convinced that the canons of
financial propriety are fully adhered to by TNEB and requested the TNERC
to accept the tariff petition.

2.3

AT& C Loss

2.3.1 When the demand for power is growing, there cannot be an increase in AT
& C loss.
2.3.2 Bringing the AT & C loss level from 18% to 15% under R-APDRP scheme
is toughest job as it would be subject to diminishing returns.
2.3.3 TNEB may concentrate on R-APDRP scheme in high density areas, so
that the loss can be contained.

11

2.3.4 18% AT & C loss in Tamil Nadu is very static in spite of several steps
taken to reduce the same.
2.3.5 The Maharashtra Electricity Regulatory Commission has fixed a maximum
ceiling for T & D Loss upto which the licensee can go. The licensee has to
bear the loss over and the above the ceiling. On similar lines, the TNERC
may fix maximum ceiling for T & D loss and the loss above the ceiling shall
be borne by the TNEB.
2.3.6 Meters have been fixed in 93000 distribution transformers to assess the T
& D loss. But so for, no reading has taken place.
2.3.7 Electricity theft should be curbed since the theft results in increasing the
cost of power supply to common public.
2.3.8 The line loss is 16% which can be reduced to 4% through innovative
transmission and distribution system.
2.3.9 Electricity theft is being carried out with the connivance of TNEB staff.
2.3.10 High temperature treated wire should be used for reduction of T & D loss.
LED lamps should replace tube lights to have reduction in power
consumption even though the initial cost is high.
2.3.11 Super conducting wire has been invented by Thiru. Venkatmanickam in
USA by which the line loss has been reduced to 6.30%. Why is the TNEB
not taking such steps to reduce the losses?
2.3.12 TNEBs inefficiency should not be passed on to the consumers.
2.3.13 Political parties tap electricity through unauthorized means for their
meetings. Political parties may obtain clearance for their meetings from
TNEB..
2.3.14 Electrical instruments and appliances with star rating should be purchased
to encourage energy conservation.

2.4

Metering

2.4.1 TNEB can go for 100% metering to get correct quantum of subsidy for
agricultural consumers.
2.4.2 Non metering of electricity service connections amounts to violation of

12

Electricity Act 2003.

2.4.3 The farmers hesitate for metering agricultural services because they fear
that in future the agricultural services could be billed.
2.4.4 More effective way of implementing metering in the agricultural service
connections is through incentivizing.
2.4.5 Unless the farmers association is convinced, meters cannot be installed in
agricultural service connections.
2.4.6 Metering of agricultural services is a political decision. TNERC must have
said No to the postponement of agricultural metering. TNEB should start
the metering of agricultural connections as soon as possible.
2.4.7 Free power could continue but metering agriculture power is required to
avoid wastage and to monitor the supply to agriculture connections.
2.4.8 Metering has not been done properly in the past. Metering is the gateway
of revenue to TNEB. The lethargic attitude of the middle / senior level
officials in TNEB has resulted in improper implementation of metering
policy.
2.4.9 Metering should be done in kVAh instead of kWh.
2.4.10 Metering involves expenditure on cost of meters and on employees.
2.4.11 Meters should be provided at transformer end.
2.4.12 MRT may be established to check the meters for accuracy.
2.4.13 There should be waiver of meter rent in every CC bill as the consumers
have already paid the meter caution deposit
2.4.14 Board to employ adequate manpower to complete the meter reading of
transformers and windmills
2.4.15 There is inordinate delay in purchase of meters for LT services
2.4.16 Meters should be sealed to avoid tampering

2.5

Cost of Supply

2.5.1 Differential tariff may be fixed according to the voltage of supply. The
TNEB should approach the Commission with a cost to serve model and
leave it to the Commission to decide the tariff.

13

2.5.2 The steps taken by TNEB to reduce the cost to serve may be brought out.
2.5.3 Average cost of supply to each class of consumers should be made public.
2.5.4 As per the National Tariff Policy, the tariff to the consumer should be +
20% of the average cost of supply. It may be ensured that the National
Tariff Policy is not violated during the finalization of tariff.
2.5.5 The employee cost in TNEB is more and same should not be imposed on
the consumers.
2.5.6 When other input costs have increased considerably over the period of
time, the tariff revision has to be welcomed.
2.5.7 Star hotels, hospitals, places having centralized air condition should be
levied tariff at cost to supply.

2.6

Subsidy and Cross Subsidy

2.6.1 To a query as to whether the GOTN would continue to subsidize the

consumers at current level, the representative of Government informed
that the level of subsidy will be decided only after the Commission finalizes
the tariff order.
2.6.2

Agricultural subsidy is provided by the Government. Cross subsidy cannot

be continued over a long period of time and it should be brought down
over a period of time. However, subsidy can be continued.

2.6.3 Social obligation should be left to the Government of Tamil Nadu.

2.6.4 In neighboring States like Andhra Pradesh and Karnataka, the subsidy is
primarily allocated to Agriculture whereas in Tamil Nadu, the subsidy is
largely allocated to domestic consumers and only a little subsidy is
allocated to Agriculture sector. Hence more subsidies need to be provided
to Agriculture sector.
2.6.5 Gap between cost to serve and revenue is Rs.1.66 per unit.
2.6.6 Subsidy should be given to economically backward people and not to the
affluent people. 20% rich lands lords enjoy 80% of free electricity and 80%
poor agriculturists cannot access even the balance 20% electricity. It is to
be decided as to whom the increase should be given.

14

2.6.7 The working women hostel being run on nominal rates, presently charged
under commercial tariff may be given government subsidy.
2.6.8 There should be no cross subsidy by industry sector to agriculture sector.
The GOTN gives agricultural subsidy to the tune of Rs.263 Crores but
actually it should be Rs.4118 Crores.
2.6.9 M/s. Price Water House Coopers study report conducted at the instance
of SIMA states that 90% of the cross subsidy is passed on to industrialists
and 6% is borne by the Government of Tamil Nadu as against 50% norms
fixed under Electricity Act 2003.
2.6.10 National Tariff Policy states that the band width between the maximum
and minimum tariff should be + 20%. Hence, the Government of Tamil
Nadu should pay the cost to TNEB for the power supplied at subsidized
tariff rate.
2.6.11 90% of micro industries are operated from rental buildings. There is more
number of units in one campus. One main meter is fixed and sub meters
are fixed for each unit. Subsidy may be extended to sub meter in each
unit.

2.7

Generation

2.7.1 Plant load factor is adopted between 85% and 87%. TTPS is more than 25
years old and the estimated PLF of 80% is not possible. TNEB has to
carry out expansion activity and hence, the proposed tariff increase has to
be accepted.
2.7.2 There should be 10% increase in tariff to enable the TNEB to carry out the
capacity addition programmes.
2.7.3 TNEB has not installed any power generating station of its own and
depends on IPPs. The PPAs should have been regulated.
2.7.4

The meter readings are not taken regularly at the meter fixed at the wind
mill generation units and there is no grounding transformer.

2.7.5 TNEB is un-necessarily using high cost imported coal (Rs.6500 per ton)
instead of low cost domestic coal costing Rs.2400 per ton. Coal import

15

should be avoided by using local coal.

2.7.6 Electricity demand is increasing day by day. Hence, at least three ultra
mega power projects with the capacity of 4000 MW each should be
installed to meet the increasing demand.
2.7.7 The installation charges of solar power are costly but its maintenance
charges are nil. For manufacturing Nano solar silicon units, full subsidy
should be provided in order to procure solar cells at affordable prices.
2.7.8 Coal should be purchased based on useful heat value.
2.7.9 TNEB can consider setting up new plants at Ennore and Tuticorin instead
of renovating the existing plants.
2.7.10 Adjustment of Wind mill power generation may be permitted for LT
consumers.
2.7.11 Free colour TV is provided without adding adequate generation capacity.
2.7.12 Wrong classification by TNEB of some generators as captive power plants
has deprived the Board of cross subsidy surcharge

2.8

Power Purchase

2.8.1 In the previous Tariff Order, the Commission ordered the TNEB to
optimize the cost of power purchase and reduce the interest burden.
TNEB has not taken any steps to vacate the stay obtained by IPPS in the
matter of optimizing the cost of power purchase.
2.8.2 Neighboring state of Andhra Pradesh had revised the PPAs with IPPs and
reduced the power purchase cost.
2.8.3 There is no logical reason to increase the wind tariff rate from Rs.2.30 to
Rs.3.39 per unit.
2.8.4 Sugar mills are earning huge profits by way of selling sugar, producing
ethanol / alcohol, bio manure production and selling power generated
through co-generators. The cost of power purchase from sugar mills can
therefore be reduced.
2.8.5 In the merit order list submitted by TNEB it is observed that the cost of
power from Kudankulam plant is Rs.4.80 per unit. At this cost how can

16

cheaper power be given to common consumer?

2.8.6 There should be uniform rate for the power generated from wind mills
irrespective of the date of commissioning.
2.8.7 Excess expenditure on purchase of power should be compensated by
Government as subsidy.
2.8.8 Ways and means to recover power purchase cost need to be found

2.9

Regulatory Asset

2.9.1 Regulatory Asset concept should never be an adjustment mechanism for

accounting of losses as per International Financial Reporting System
(IFRS).
2.9.2 The losses of Rs.25500 Crores have been converted into Regulatory
Asset. How it is going to help TNEB? These assets should be utilized for
improvement of TNEB.
2.9.3 Consumers should not bear the cost of the proposed creation of
Regulatory Assets

2.10

Tariff for HT Industries

2.10.1 The consumption for residential / commercial purposes under HT tariff 1

should be metered separately and charged under appropriate tariff instead
of the present LT tariff 1C.
2.10.2 Foundries require continuous power supply.
2.10.3 Automobile business is picking up and the industries may be permitted to
use power upto the contracted demand.
2.10.4 There was a Supreme Court judgment that the hospitals should not be
classified under commercial tariff and it should be treated as industries for
the purpose of tariff.
2.10.5 Power transmission in Maharashtra is provided through express way.
Similar facilities are required in Tamil Nadu.
2.10.6 In Tamil Nadu, peak hour charges are levied for consumption between
6.00 PM to 10.00 PM. In Andhra Pradesh, no surcharge is levied. There is

17

no statistics to show as to how 6.00 AM to 9.00 AM is considered as peak

hours. This period may not come under peak hour. 6 AM to 9 AM to be
made as normal slot as TNEB has not justified this as a peak slot
2.10.7 6.00 PM to 10.00 PM is the R & C period and load shedding is 3 hours.
Total power cut is for seven hours. 70% demand charges are collected
when only 49% power is made available with 51% power cut.
2.10.8 There should be no cross-subsidy burden on HT consumers.
2.10.9 Peak hour charges are collected at 20% whereas the incentive for
consumption during 10.00 PM to 5.00 AM is provided at 5%. The night
shift allowance (incentive for night consumption) may be increased to
20%.
2.10.10 Fresh projects are diverted to other countries outside India due to high
cost of power / production.
2.10.11 Government of Tamil Nadu earns revenue of Rs.26850 Crores from
industries. There is a possibility of the industries moving out to other
States due to power cut and expected revenue may not come.
2.10.12 The demand charges at Rs.300 per kVA per month fixed before the FY
2003 is being continued and it should be reduced.
2.10.13 Textile industry is the single largest consumer for TNEB and out of total
HT power load, 27% is utilized by textile industry. Proposed increase of
50 paise per unit with 55% power cut is not justified. Textile industries
have constant power load for 24 hours and hence, there can be a
reduction of Re.1 per unit. Textile industries should be exempted from
tariff hike.
2.10.14 The tariff to the consumers who are receiving uninterrupted power
supply should be increased.
2.10.15 Separate tariff for railway traction may be introduced.
2.10.16 There are no restrictions for LT & LTCT industries whereas HT industries
are subject to the same
2.10.17 The Commission should consider doubling the percentage of incentives
for power factor

18

2.10.18 More rebate equal to 20% surcharge during peak hours for HT industrial
consumers

as against 5% in the previous Tariff Order

should be

provided
2.10.19 Industries should be permitted to go beyond the fixed base demand and
energy even though ready to buy under open access

2.11

Tariff for HT II A Educational Institutions and Recognized Hospitals

2.11.1 There should not be any hike to hospitals and educational institutions
under high tension
2.11.2 Military Engineering Services (MES) require a license as per the
provisions of the Act. They purchase power from TNEB and supply power
to its establishments within the premises. They collect normal charges
from defense personnel. They have established transmission and
distribution network and employed man power to maintain the same. MES
require either reduction of tariff or a separate tariff to their services.
2.11.3 Indian Medical Association, Adiparashakti Charitable Trust , Broadcasting
Corporation of India (AIR)

have requested for change of tariff from

Commercial to industrial tariff.

2.12

Tariff for HT II B Place of Public Worship

2.12.1 The HT tariff IIB can be clubbed with HT Tariff II A or demand charges for
HT II B can be increased.

2.13

Tariff for Domestic

2.13.1 The homes like orphanage, home for aged, etc, run on charity should be
classified under domestic category.
2.13.2 The house-owners are charging exorbitant tariff from tenants- its a parallel
trading. Electricity charges collected for a rental building may be regulated.
2.13.3 The fixed charges of Rs.10 collected bi-monthly may be revised.
2.13.4 Tariff hike for domestic consumer who consumes more than 200 units bimonthly is not justified.

19

2.13.5 An association for non traditional employment for women, an NGO

providing training for under privileged women request to be charged under
domestic tariff. Their expenses are met out of donations from corporate
and philanthropists.
2.13.6 Domestic consumers may be divided into affordable and non-affordable
categories and separate slab may be introduced for non-affordable.
2.13.7 Domestic consumers are given free hand to increase the load. They need
to have limit in their load.
2.13.8 There should be no hike for the bi-monthly consumption between 200 and
500 units.
2.13.9 The tariff hike should be for consumption above 400 units bi-monthly.
2.13.10 Slab from 200 units to 600 units may be changed as 200 to 1000 units
and there should not be any tariff increase upto 1000 units.
2.13.11 Use of power from domestic connection to the shop was hitherto
charged under misuse of tariff and compensation charges levied. Now it
is classified as theft of power and compounding charges are levied. This
requires correction.
2.13.12 Domestic consumers should not be made as scapegoat for TNEB giving
free power supply. TNEB should insist the Government to bear the loss.
2.13.13 During February and March, 25% subsidy in domestic tariff should be
provided to help students to prepare for examinations.
2.13.14 Poultry rearing may be charged at domestic tariff.
2.13.15 Domestic tariff should be increased.
2.13.16 A flat rate may be levied for consumption of 600 units and above from
zero units without any slab rate. For orphanages there may be a flat
concessional rate.
2.13.17 Old age homes run on donation and door to door collection may be
charged at flat rate.
2.13.18 A separate slab for consumption of 100 to 400 units may be introduced.
2.13.19 The tariff hike for consumption above 600 units bi-monthly may be 50
paise per unit.

20

2.13.20 Organizations such as Home of Physically Challenged, Employment for

Women, Home for the Aged, Orphanages, charitable trusts, organization
of ex-service men. , organization for rendering free service for terminally
ill patients have requested for levy of domestic tariff.
2.13.21 Places of worship in rural areas have requested to be charged
residential tariff.

2.14

Tariff for Hut

2.14.1 The category name Hut can be renamed as BPL category, since, the
concept of Hut has vanished.
2.14.2 The load limit to BPL category should be increased to 110 watts. Meters
may be fixed and consumption upto 100 units bi-monthly may be free.
Consumption beyond 100 units bi-monthly may be at regular tariff.
2.14.3 Free Hut service connections are being misused. Refrigerators and
washing machines are also used in Hut services as against mandatory
load limit of 40 watts bulb and free colour TV. They may be charged at
Rs.50 per month as they have more appliances.
2.14.4 Huts should be levied minimum tariff

2.15

Tariff for LT Bulk Supply

2.15.1 Railway purchases power at bulk supply tariff and collects charges at
domestic tariff from its employees resulting in loss to tune of Rs.45 Crores
per year.
2.15.2 Manavalakalai Mandrams provide yoga for human excellence and change
of tariff from LT tariff V to LT tariff I C for 68 centres on par with tariff to
Azhiyaru Arivu Tirukkoil.
2.15.3 Organisations such as Aurobindo Society, Rehabilitation Trusts, Working
Womens Forum, World Community Service Centre have requested for
Bulk supply tariff

21

2.16

Tariff for Street Light and Water Supply

2.16.1 Railway level crossing may be charged at the tariff applicable to street
lights.
2.16.2 Electricity consumed in water supply pump house of Railways for supply of
water to their employees quarters, stations and coaches may be charged
at the rate applicable to water supply.
2.16.3 Time limiter / Auto switches on / off may be installed for street lights. The
street lights should be switched on and switched off properly.
2.16.4 Free power supply may be extended to overhead tanks in village
panchayat area for pumping drinking water and Street lights may be
charged at domestic tariff rates.
2.16.5 Ragas Education Society and National Highways Authority of India have
requested for tariff as applicable for public street lighting

2.17

Tariff for LT Educational Institutions, Recognized Hospitals, etc

2.17.1 The proposed tariffs to cinema theatres are lesser than the tariff proposed
for educational institutions.
2.17.2 Educational institutions are paying salary as per the recommendations of
the sixth pay Commission. Why is there a difference between the tariff for
educational institutions under HT and LT categories?
2.17.3 The tariff hike to educational institutions will result in curbing the facilities
such as fans and air conditioners in hostels and colleges which will affect
the students.
2.17.4 The tariff to LT II B should be increased and concession should not be
extended.
2.17.5 Private educational institutions and hospitals may be charged more as
they are run on commercial basis.
2.17.6 ACMEC trust, Melmaruvathur is running free hospital for the poor and
request for concessional tariff.
2.17.7 Organizations such as Indian Medical Centre , Tamilnadu People Welfare
Association,

Charitable

Hospitals,

Naval

Unit

NCC,

Broadcasting

22

Corporation of India AIR, Cretches and labour recreational facilities in

Planters Association of Tamilnadu , Rural University and Indian Medical
Association have requested for change of tariff under this category

2.18

Tariff for Places of public worship- LT II C

SDP charities, Salem Arivu Thirukoil, Shivaram Trust (Veda patashala &
hostel) have requested for tariff under LT II C.

2.19

Tariff for Cottage Industries

2.19.1 The consumption limit for hike in Tariff for cottage industries should be
increased from 1500 units to 3000 units. The cottage industries reduce
their product prices by 3% to 8% in view of competition from MNC.
2.19.2 Tariff for consumption above 1500 units bi-monthly need not be hiked.
2.19.3 Flour mills should be charged more.
2.19.4 The connected load limit of 10 HP may be increased to 20 HP.
2.19.5 Flour mills, Coffee grinding, etc upto 10 HP earlier classified under LT III A
(1), have subsequently been classified under LT III B. The tariff for this
category upto 10 HP may be restored to LT III A (1).
2.19.6 Mushroom growers having connected load of less than 10 HP may be
given free power on par with agriculture.
2.19.7 Tariff to steam laundries may be changed from LT III B to LT III A (1)
where the connected load is more than 10 HP as the steam laundries
normally require more than 20 HP.
2.19.8 Indian Red Cross Society, Agriculturists of Dharmapuri & Thiruvannamalai
district Owners Association, Local Jetty manufacturers, Steam Laundry
have requested for re classification of tariff under this category.
2.19.9 Flour mills have also requested to revise the monthly minimum charges
into fixed monthly consumption tariff
2.19.10 Various individuals owning flour mills, diesel service stations, Xerox
shops, cable shop have requested for change of tariff category

23

2.20

Tariff for Power Loom

2.20.1 Braided cord manufacturing is a manufacturing process industry where

twisting and winding is done. Earlier this was classified along with power
loom. This category is charged at the tariff applicable to Cottage and tiny
industries (LT Tariff III A (1) since 2003. Only family members are
engaged in this process. The earlier status of Power Looms (LT III A (2))
may be restored retrospectively.
2.20.2 Power looms installed in residential areas cause noise pollution and hence
should not be allowed. Power looms are given free power upto 500 units
and consumption beyond 500 units are charged at Rs.1.40 per unit
whereas domestic consumers are charged at Rs.1.80 per unit which is not
justified.
2.20.3 The limit for free power may be increased from 500 units bi-monthly to
2000 units bi-monthly.
2.20.4 The free units for power loom consumers may be as below:

For the demand of 5 HP

- 500 units

For the demand of 10 HP

- 1000 units
Or

50% of units consumed

2.20.5 Braided Cords Association (with recommendation from Tamilnadu

Chamber of Commerce -, Madurai), All District Ice Producers Welfare
Association have requested for change of tariff categorization under this
tariff

2.21

Tariff for LT Industries

2.21.1 The proposed LT industrial tariff is high and the neighbouring states are
charging low tariff and hence, LT industrial tariff should not be increased.
2.21.2 The small scale industries are facing competition from industries in Kerala,
Karnataka, Maharashtra, Punjab, etc, where the power tariff is lesser.
Hence, level playing is difficult. Under economic recession , the tariff hike
will be an additional burden.

24

2.21.3 Micro and small industries in rural feeders get supply for only four hours in
a day rendering it difficult to run the industry. There should not be any tariff
hike to small industries
2.21.4 The Ice factories are catering to the needs of fisherman and their
production depends on the fishing activities. They have to keep the plants
running even when there is no demand for block ice and are paying
electricity charges without revenue. They require a special concession on
par with the other neighbouring states or tariff similar to power looms.
2.21.5 Small nursing homes in Tamil Nadu may be charged on par with the SSI
Industries to encourage young doctors to run hospitals in rural area.
2.21.6 LTCT consumers may also be brought under R & C measures.
2.21.7 Cold storage requires uninterrupted power supply to preserve agricultural
produce. There should not be R & C measures for cold storage. 40 Million
tons of agricultural stock is wasted due to lack of post harvest storage
technology. Cold storage has high cost of operation. Power cost accounts
for 70% to 80% of overheads. There should be no increase in tariff.
Instead subsidy may be provided to cold storage.
2.21.8 Plastic industries involve continuous processing and hence, uninterrupted
power supply is required.
2.21.9 As per MSMED Act, investment limit in plant and machinery for small scale
industry has been increased to Rs.5.00 Crores from Rs.1.00 Crore.
Hence, the maximum connected load limit for LTCT connection may also
be increased from 150 HP to 300 HP.
2.21.10 Salt manufacturing is charged under Industrial tariff. The operation of salt
manufacturing is similar to agriculture operation and concessional tariff
may be extended.
2.21.11 Rice mills are exempted from power cut. The maximum connected load
for LT industries may be enhanced from 112 KW to 200 KW.
2.21.12 Tailoring & Embroidering Units, Water services, ONGC, South India
Hotels & Restaurants Association, Ice factory in Fishing Harbour,
Wireless TT Info Services have requested to be treated on par with

25

other industries and be charged industrial tariff instead of commercial

tariff
2.21.13 TNEB is imposing a surcharge under LT III B of 15% for welding
industry, inspite of the fact that welding machines now are power
efficient due to technology upgradation with a power factor of 0.9.
Hence, the Commission may consider waiver of the 15% surcharge for
welding tariff

2.22

Tariff for LT Agriculture

2.22.1 Agriculture should be charged under concessional tariff.

2.22.2 TNEB shall ensure that the free supply to agriculture is not wasted. The
agricultural pumpsets should be modernized to reduce the consumption.
2.22.3 The ground water levels have gone down due to which the farmers are
compelled to use higher HP motors, capacity of which has increased from
3 HP to 15 HP.
2.22.4 Research institutes of Tamil Nadu Veterinary and Animal Sciences
University are doing research on fodder to cattle. The tariff may be
changed from LT tariff II B to either free power (agriculture) or under LT III
A (1)
2.22.5 ACMEC trust, Melmaruvathur is having agricultural lands and provision of
free power is requested.
2.22.6 Separate rural feeder is required for agricultural service connections.
2.22.7 Sheep, Goat, Cattle, Poultry farming etc is allied to agriculture and these
activities are carried out alongwith agriculture. Penalty is imposed when
water is taken from the free agricultural service to provide to the animals.
2.22.8 Agriculturists grow trees and vegetables which reduce carbon-di-oxide and
thus eligible for carbon credit.
2.22.9 Agricultural subsidy would be more if the actual loads in agricultural
services are assessed and accounted for. Voluntary Disclosure Scheme
may be introduced to regularize the excess load in agricultural service.
2.22.10 Agriculture subsidy should be equal to agricultural energy consumption.

26

2.22.11 Agriculturists rear fish by pumping water from agriculture services and
they are now being fined. Such agricultural service may be charged at
Rs.250 per HP per year. TNEB may get Rs.43.50 Crores per year.
2.22.12 New category for fish culture may be introduced. Fish culture may be
categorized as industry instead of commercial category
2.22.13 Lot of misuse of agriculture power is taking place. The farmers are
pumping water from agricultural wells and are selling water.
2.22.14 Irrigation societies are charged at 50 paise per unit for agricultural
operation. Free electricity may be extended.
2.22.15 Agricultural tariff may be extended to two numbers of bore well
established by Centre for Rural Education and Economic Development
(CREED) an NGO established by Indian Council of Agricultural
Research under the network of Krishi Vigyan Kendras (KVK). The KVK
is to foster propagation and cultivation of different economically
beneficial crops and horticultural plants for the demonstration and
distribution to the wider range of small and marginal farmers.
2.22.16 Farmers may be allowed to use free agricultural service for green house.
Agricultural service may be given to all farmers under LT III A (1) at
Rs.1.20 per unit and the service connection may be given within 30 days
without mentioning the classification of crops.
2.22.17 Animal Husbandry, Nilgiris Potato & Vegetable Grower Association, Salt
Manufacturers

Corporation,

CREED Krishi Vigyan

Kendra have

requested for change in tariff to this category

2.23

Tariff for LT Commercial

2.23.1 Commercial consumers who use power upto 400 units should be charged
at the tariff on par with domestic consumers.
2.23.2 The tariff to working womens forum should not be hiked or subsidy should
be given as the forum is doing social work for poor women and their power
consumption is increased due to computerization of their accounts.
2.23.3 Hotels are providing hospitality services and service industries like hotels

27

should be treated on par with manufacturing industries for the purpose of

tariff.
2.23.4 Health care industries should be given a separate tariff with uniform flat
slab rate or at least on par with the Government hospitals.
2.23.5 For the new nursing homes established in village areas, subsidized tariff
may be extended for the first five years to encourage establishment of
hospital in rural areas. Normal tariff may be levied after five years.
2.23.6 World Community Service centre is a non profitable organization,
providing free yoga and meditation training to various States and Central
Government organizations. They are presently charged under Commercial
tariff and they request concessional tariff.
2.23.7 Ayyappa charitable trust engaged in various humanitarian, medical, social
and civic activities for the poor and downtrodden is presently charged
under Commercial tariff and they request concessional tariff rate with
retrospective effect.
2.23.8 DEAN foundation giving free palliative care to the patients with terminal
diseases, presently charged under commercial tariff requests domestic or
alternative tariff.
2.23.9 Bharat Sevashram Sangha, Rameswaram is a charitable missionary
providing social services during natural calamities providing water,
boarding and lodging without any charges. The ashram is run on donation.
They were charged under domestic upto 2003 and since 2003 they are
charged at commercial rate. They request normal tariff.
2.23.10 The tariff upto 1500 units bi-monthly may be fixed at Rs.3.00 per unit.
2.23.11 Tariff to cinema theatre is proposed to be revised from Rs.4.40 per unit
to Rs.5.00 per unit whereas the tariff for petty shops is proposed to be
revised from Rs.5.80 per unit to Rs.6.50 per units which are not justified.
2.23.12 Small (petty) traders request tariff on par with domestic or a separate
tariff at Rs.3.00 per unit upto 250 units bi-monthly.
2.23.13 India Medical Center, Kanyakumari has requested for exemption from
tariff increase as it provides free service / treatment to all patients.

28

2.23.14 If private hospitals and nursing homes are charged under LT tariff II B or
HT tariff II A, the hospitals can reduce the health charges to the public.
The SIDCO / SIDBI treat the medical profession as industry.
2.23.15 Presently plantations are being charged at Commercial tariff and it
should be changed to agricultural tariff.
2.23.16 Marriage halls should be asked to pay more for each unit. Hotels should
be charged at Rs.10 per unit.
2.23.17 For use of Neon lights, the tariff may be levied twice the commercial rate.
2.23.18 Reliance Communications, Vodafone Essar Cellular Ltd, Association of
Unified Telecom Service Providers of India Wireless, TT Info Services
Ltd (A subsidiary of Tata Teleservices Ltd), Indus Towers which are
classified under IT industry have requested for industrial tariff.

2.24

Tariff for LT Temporary Supply

2.24.1 This category is not required.

2.24.2 The temporary supply should not include construction activity. The supply
purely on temporary basis may be charged at double the commercial rate.
2.24.3 Electricity consumption for political meeting shall be charged to concerned
political parties and electrical consumption for the temple festivals shall be
charged to the temples concerned.
2.24.4 Separate tariff for lavish illumination may be introduced.

2.25

Free / Concessional Tariff

2.25.1 The following organizations have requested for levy of free / concessional
tariff :
Bone specialty hospitals, Trusts, National Agricultural Foundation, Blind &
Physically Handicapped Trust, Nilgiris Mushroom Growers/ Manufacture
Association , Public charitable Trusts,

Nilgiris Bought Leaf Tea

Manufacturers Association, BSNL for its quarters and group houses,

Madurai Betel Nut Beedi cigarette merchants Association, Coimbatore
District Coolies Weaving Owners Association, Buildings occupied by fair

29

price shops sun by co-operatives, Tamil Nadu Veterinary & Animal

Sciences University, Youth hostel JV of GoI and GoTN, Agri service
connections for poor farmers in Kanyakumari be changed from
Commercial to free / concessional tariff.
2.25.2 GoTN should consider a subsidy to such hospitals for buying generators
and those hospitals who have generators, diesel should be supplied at
Concessional rate.

2.26

Request for separate category

2.26.1 Military Engineering Services, Rural hospitals, Fish processing industry

and Southern Railway have requested for separate tariff category.
Southern Railway have specially requested for separate tariff for Traction
and Non traction

2.27

TNEBs Response

2.27.1 The TNEB has to spend around Rs.2000 Crores on metering of

agricultural services.
2.27.2 Domestic users consume 15 million units / day. Individual consumption
has already crossed more than 1000 units, whereas the percapita
consumption envisaged in the 11th Plan is 1000 units only. Last year, the
average cost of supply was Rs.4.70/unit and it is expected to increase to
Rs.4.90 / unit. As on date, the average recovery is Rs.2.60/unit. For every
consumer, the average subsidy is Rs.2.30 / unit. In Tamil Nadu, except
Commercial and Industry, other categories come under subsidized tariff.
Out of 2.09 crores consumers, no hike is proposed for 1.65 crores
consumers. Out of 1.50 crores domestic consumers, there is no hike for
1.40 crores consumers. Hike is proposed for only 10 to 12 lakh domestic
consumers. The average increase is 65 ps. only.
2.27.3 TNEB is also taking steps to curb theft of power. In 2008-09, total recovery
on account of energy theft was Rs.17 crores and for the year 2009-10, it
was Rs.50 crores.

30

2.27.4 Capacity addition to improve the power position in the state requires heavy
investment. TNEB has proposed Rs.3500 Crores for capital investment.
From 2011-12 onwards, 2000 MW of power generation will be added
every year. Rs.3500 Crores have been invested in the last 2-3 years. In
the next few years, Rs.6, 000-8000 Crores will be further invested.
It is expected that the power generation will increase as under:
o 2011-12

2,000 MW

o 2012-13

2,200 MW

o 2013-14

2,500 MW

2.27.5 Line loss is estimated @ 18%. Even if it is assessed, it would not be more
than 19%, whereas at the national level, the line loss is 26%.
2.27.6 There is no proposal to do away with the free power supply to power
looms.
2.27.7 Unmetered consumption is only estimation. For those consumers who
consume 80 to 100 units per month, no tariff increase is proposed. Small
industries are exempted from power tariff increase. The cost of production
is estimated to increase from Rs.4.52/unit to Rs.4.90/unit; the average
recovery is Rs.3.60/unit and the revenue-cost gap is Rs.1.10/unit to
Rs.1.30/unit.
2.27.8 To meet the power shortage of 3000 MW, TNEB is purchasing 2000 MW
to 2200 MW from the market.
2.27.9 Tariff increase is proposed only for those who can afford to pay. TNEB
has requested for marginal increase in tariff to reduce its financial crunch.
2.27.10 On the requests raised by various consumers for change of tariff, TNEB
is of the view that the existing system of change of tariff on a case to
case basis be continued so that field verifications can be done before
according the change of tariff. The

common purpose service

connections for change of category may be examined at a later date.

However,

requests of all the consumers cannot be considered as it

would be a cause for severe strain on the finances of the Board.

31

2.27.11 Grant of subsidy is the prerogative of the State Government. The extent
of subsidy for various classes of consumers varies and presently, all
categories of consumers are being subsidized. As of now, the TNEB
has not proposed any increase in tariff for the Huts and Agriculture
category.
2.27.12 The TNEB is making increasing attempts to bring down the cost of
power purchase, but fails to do so due to increased demand and
reduced supply of power. Hence, it is constrained to buy expensive
power from the market in order to maintain the supply schedule. It has
now approached the Commission with the tariff proposal which among
other options will also help recover the cost of power purchase. The
TNEB has also tried to reduce cross subsidy by way of not increasing
tariff for most of the categories. . It is to mention that even though the
element of cross subsidy is high, all consumers for every category are
getting subsidized power. It is only the degree of subsidy which varies.
Even now, the TNEB has sought a very little tariff hike
2.27.13 AT & C / T & D losses of TNEB may be in the range of 18%-20% which
is better than the loss levels of some utilities in the country at an average
of 56% and the national average being around 26%. It is to clarify that
the 18% is inclusive of all the losses (including theft etc). However, the
TNEB is taking various steps such as improving collection efficiency,
replacement of defective meters, active participation of the enforcement
wing for reduction of energy thefts, improving the length of HT lines in
Sub transmission, improving the HT: LT ratio in the distribution system,
erection of new sub-stations , segregating feeders,

provision of ring

fencing and automatic data logging system among other measures to

reduce these losses. It is expected that the losses will be reduced to
15% in another three years after implementation of such measures
2.27.14 The TNEB is concerned with the increasing demand supply gap in the
state leading to shortfall in power supply. Hence, in order to be self
sufficient, the TNEB is contemplating on adding capacity. The Board

32

envisages a capital expenditure to the tune of Rs 6456 Crores during the

financial year 2010-11. In the coming years, the TNEB will be investing
around Rs 8000 Crores for capacity addition / capital expenditure for
generation alone. The Kudankulam plant is expected to generate 965
MW of which Tamil Nadus share is 464 MW. This supply was expected
to commence by June 2010 which has been postponed to September
2010. The only difficulty in the capacity addition program pertains to
equipment supply. The only supplier of necessary equipment is BHEL.
Presently, the focus of BHEL is Delhi, which is the venue for the
Commonwealth games. Hence, the TNEB is informed that the wait for
the equipment would be at least 3-4 years. Hence, the capacity addition
of 600 MW is expected by March 2011 and another 600 MW is expected
by June 2011. The Board is also undertaking refurbishment of its old
generating stations, which would lead to extension of life and
improvement of PLF. This would lead to enhancement of power at lower
cost to the consumer
2.27.15 The TNEB has been making efforts to publicize various methodologies
for energy saving among the general public. It has updated its website
on the various methods of energy savings to be adopted by Domestic,
Agricultural and Industrial consumers. It has also taken steps for
implementation of various DSM projects which are elaborated in the tariff
petition. As regards solar power utilization, the proposal is expensive
leading to high per cost of power. Instead, TNEB is focusing on wind
power which is cheaper source of power.
2.27.16 At present, there is gap in the power availability and power demand. The
gap is around 25-30% which works out to around 2500-3000 MW.
Hence, there necessarily will be power supply restrictions. However,
TNEB is imposing rotational power cuts It is also trying to maintain the
schedule of supply by buying expensive power from the market, which is
not available most of the times due to the high demand from other states
in the country. The state of Tamil Nadu is the one of the largest

33

producers of wind power and it is hoped that wind power would come to
the rescue of the TNEB in tiding over its power crisis to some extent in
the coming months. Hence, it is requested from the general public to
bear with the TNEB for another 1 1/2 2 years by which time the power
supply in the state would be comfortable due to the commissioning of
most of the power plants. The Board has also proposed 110 schemes
for implementation of the Restructured Accelerated Power Development
and Reform Program (R-APDRP) to improve consumer satisfaction by
establishing quality, reliable and stable power supply.

This will be

achieved by establishing IT based measuring system and strengthening

the Distribution networks aiming at accounting the entire unaccounted
for power.
2.27.17 TNEB acknowledges that metering all the consumers is important to
ensure recovery of the due revenue. Though the TNEB is making all
efforts to meter huts and agriculture connections, it faces stiff opposition
from the same consumers As the complete process of metering the
Agricultural and Hut services is very vast and slow process, TNEB has
requested the Commission for time and the Commission has granted
time for another three years from 01-10-2009 to complete the same.
The Board also has an action plan for speedy replacement of defective
meters. TNEB has been incurring losses since 2003-04. The tariff was
last revised in 2003 and since then the electricity rates in Tamil Nadu
have undergone no change. The mounting losses can be wiped off in a
phas ed manner only by way of creation of Regulatory Asset so as to
avoid tariff shock to the consumers. The practice of creation of
Regulatory Asset has already been implemented in other states. The
TNEB has projected cumulative Regulatory Assets to the tune of Rs
16774.47 Crores (upto 2008-09). This asset would be in the nature of a
deferred expenditure and will be charged as expenditure while
formulating the ARR in the future years

34

2.27.18 The TNEB is actively taking steps to control theft of power. An Anti-theft
squad has been formed which is periodically conducting raids to detect
theft of power. For the previous financial year, around Rs 17 Crores
have been recovered. This year, the recovery has increased to Rs 50
Crores.

TNEB is also taking various preventive actions such as

installation of metering point in front of premises, installing electronic

meters , sealing the distribution boxes and bus chambers before the
meters, , detecting thefts through scientific planning of inspections ,
usage of check meters , automatic voice recording system, cash award
scheme to the employees etc. Though theft cannot totally be eliminated,
the TNEB is doing its best for recovery and plugging in the losses.
2.27.19 The TNEB has not proposed any revision in tariff for LT consumers
under I-B ( Hut ), II-A ( Street lights & water works ), II-C ( places of
worship), IIIA(2) (Powerloom weavers), IV ( Agricultural consumers )
and LT consumers who are consuming less . It has also not proposed a
hike for HT II B (places of worship), HT-IV (Lift irrigation), and HT V
(Puducherry). Others are proposed only with a marginal increase
wherein the people who are consuming more power and have the
capacity to pay . Therefore, the TNEB is only able to partially meet its
losses.

This is also in line with the government policy that the

consumers who pay the least are given the top most priority. Thus, the
tariff hike is only for 12 lakh consumers in the state. The maximum
increase proposed is Rs 1/- per unit. The existing free supply of power
would also continue and TNEB has not proposed any modification in this
regard.
2.27.20 As per Regulation 5(5)(i) of the Tamil Nadu Electricity Supply Code, rate
of interest on Security Deposit shall be on the basis of the Commissions
direction. The Commission, in its recent Order of 12-04-2010 has fixed
the rate of interest on the consumer security deposit as 6%. The
Commission has also directed the TNEB to pay interest at 6% on the

35

Security Deposit and Meter Caution Deposit as on 31-03-2011 to be

intimated to the consumers by 30-06-2011.
2.27.21 The TNEB has been sourcing its power purchase from central
generating stations, its own generating stations, private captive
generators, IPPS and from the open market. In this regard, the TNEB is
following the merit order dispatch while making its purchase. However, in
times of acute shortage of power in the state, it is constrained to buy
expensive power. However, in order to tide over purchase of expensive
power, the TNEB has made ambitious plans for capacity addition which
will yield fruit in another 3-4 years.
2.27.22 The TNEB is purchasing coal by executing Fuel Supply Agreement with
Eastern Coal Field and Mahanadi Coal Fields for a period of 30 years
w.e.f 01-04-2009. The price of coal also varies as per notification from
Coal India Ltd. The variation depends on factors such as quality,
moisture content, ash content, volatile matter, useful heat value,
statutory charges etc. Hence, its is TNEBs intention to buy quality and
cost effective fuel
2.27.23 The TNEB is dependent on its own Wind farms and private generators of
Wind. It is acknowledged that wind comes in as the saviour to the TNEB
in crucial power situations.

2.28

TNEBs response on the petition for Southern Railway is as follows :

2.28.1 RAILWAY TRACTION

(1) EHT Category to be introduced with a sub category for Railway Traction
under the EHT category. Present Tariff category : HT Tariff I A
At present 90 numbers 110 KV EHT Services and 5 numbers 230 KV EHT
Services are available. The Energy consumption during the FY 2009-10 is
2413 MU and if any sub category of tariff for Railways is allowed, then the
same sub category is to be allowed for all EHT Services. Hence, if
reduced rate of 20 paise is adopted for these 95 nos EHT services, their

36

probable additional impact to the Board will be Rs 120.65 Crores.

In

respect of Railways, only the energy consumption during FY 2009-10 is

285 MU and if the reduced rate of 50 paise is adopted for EHT services of
Railways, the probable additional impact to TNEB will be Rs 14.27 Crores.
(2) Demand & Energy charges in Railway Traction tariff is to be fixed at lower
than EHT/HT Industrial consumers on par with the average rate of
realization from the Industrial consumers at EHT/HT
(3) The energy consumption during the FY 2009-10 is 659.89 MU and if the
reduced rate of 50 paise is adopted for the EHT/HT services, the probable
additional impact to the Board will be Rs 32.99 Crores.

2.28.2 Adopt Lag only logic for metering Railway Traction loads
(1) TNEB specifically sought amendment from the Commission to delete the
word lag appearing in clause(iii), para 1 of Part 1, High Tension supply
and in Clause(5),Para(9), clause(iii),Para 11 of LT tariff IIIB,V of Chapter
7.17 of tariff order dt.15.3.2003 on Power factor/Low Power factor
surcharge.
(2) As per the original tariff order dt.15.3.2003, the average power factor of
the consumers installation shall not be less than 0.90 lag in respect of HT
and .85 lag in LT III B and V with a connected load of 25 HP and above.
Wherever the average power factor is less than the stipulated limit,
compensation charges have to be levied. Wherever power factor exceeds
.95 in HT and .9 in LT, and incentive was given i.e a power factor rebate of
0.5 of the amount of CC charges for every increase of 0.01 in P.F.
(3) The deletion of the word lag was sought due to the following reasons:
i) Both capacity VAR and inductive VAR pumped into the system are
detrimental.
ii) On the pretext of incentive, the consumers were over compensating.
iii) Due to the over compensation, utilization of Transformer capacity gets
blocked due to the increase in current; line loss increases.
iv) Also over voltage problems occur in the LT side of D.T.

37

(4) TNERC issued an amendment vide T.O 1-102 dt.22.5.2007 deleting the
word lag in the above stated clauses of chapter 7.17. The above order is
applicable for all the consumers.
(5) Further the following are submitted:
(i)

M/s. Southern Railways have already filed many petitions before

the Commission and the last of the Review petition has been
dismissed, the details of which are furnished below:

(a)

Railways had filed a petition vide M.P No.5/2006 against the

introduction of modified software by the Board to record lead
P.F. The Commission in its order dt.2.4.2007 granted 3 years
for

introduction

of

online

Dynamic

Reactive

Power

Compensation equipment in Railway Traction EHT services and

ordered that the Railways will be bound by the Tariff Order
prevailing at that time. The petitioner had sought time stating
that time is required to install necessary equipments to improve
P.F.
(b)

During 2009, M/s. Southern Railways filed another petition M.P.

No.3/2009 before TNERC stating that implementation of Order
in M.P. No.5/2006 would cause severe financial strain in
Railways and that dynamic compensation system would
consume

much

compensation

higher

system.

power
This

than

petition

the
was

existing
dismissed

fixed
on

29.6.2009. However Railways again filed a Review petition

No.2/2009 for review of the order dt.29.6.2009 in M.P
No.3/2009. This review petition was also dismissed on 1.4.2010
with the observation that merits are not justified.
(6) Contentions of the Board not to consider the request of railways to adopt
Lag only logic
(i)

At the outset it is to be stated that railways are to be treated like any

other

EHT/HT consumer. No special concession need be granted

38

thus avoiding disparity among consumers.( There are 7122 nos. of

EHT/HT consumers.)
(ii)

It may be noted that the Railways have already enjoyed the benefit of
having the metering arrangements to read lead P.F. as unity for a
period of 3 years as per the order in M.P. No.5/2006 dt. 2.4.2007,
while seeking time for installing compensating equipments for online
Dynamic Reactive Power compensation. They have enjoyed a
benefit of Rs.8,00,00,000/- in the form of incentive, and have
successfully evaded penalty for 3 years.

(iii) M/s. Southern Railways is being extended with following facilities in

spite of harmful effects on the Boards power system.
(a)

Supply on two phas es is given which induces imbalance in

the system.

(b)

Maximum demand registration is based on 30 minutes

integration whereas other utilities are having 15 minutes
integration. This helps Railways to shift the loads temporarily
during shut down/emergency condition.

(c)

No load shedding, no power cut unlike other H.T. Consumers.

(d)

Traction load transmits fluctuations and harmonics (18 to 20%)

which are harmful to the system and generators. These are
absorbed by the system of TNEB and no extra charges are
levied for the harmful injections by traction load of Railway.

(e)

Proper correction of the harmful effects has to take place at

the consumer end as otherwise the cost involved in such
corrections by the Board will pass on to other consumers.

(f)

Therefore request of Railways to adopt lag only logic for

metering of Railway traction loads need not be considered.

2.28.3 Excess MD Surcharge be levied only above 120% of the CMD and the
excess MD surcharge be reduced from 200% to 100%

39

(1) As per Regulation 5(2) of the TNERC Supply Code, whenever the
consumer exceeds the sanctioned demand, the exceeded demand alone
shall be charged at double the normal rate. As already stated in the
remarks to the prayer to adopt lag only logic, the maximum demand
registration is based on 30 minutes integration as against 15 minutes
allowed in other utilities. As the above concession has already been
granted, further requests need not be entertained. Also, if concessions are
granted to Railways, many other consumers shall seek special
concessions. The probable revenue impact for 2008-09 : Rs 5.92 Crores
and for the FY 2009-10 : Rs 2.15 Crores

2.28.4 NON TRACTION SERVICES

(1) To extend the subsidized slab tariff benefit by average billing method or to
fix the tariff rate at the proposed subsidized rate applicable for bimonthly
consumption of 200-400 units i.e Rs 2.70/unit for all the Railway quarters
connected under HT points ( HT II A, HT 1A & HT III with sub metering )
and bulk supply points under LT IC
(2) The energy consumption during the FY 2009-10 is 48.09 MU and if the
reduction of 80 paise ( Rs 3.50-Rs 2.70) is adopted for the EHT / HT
services, then loss of revenue to TNEB will be Rs.3.85 Crores Hence, the
existing tariff LT I A may be continued.
2.28.5 HT supply points with major industrial loads ( such as Electric Loco shed,
Diesel Loco shed , CTXR Wagon maintenance shed, Main receiving
station , pump Load station , Lighting load , Staff quarters load ) be
classified under HT Industrial Tariff HT 1 A and to provide sub-metering
facility for charging the Commercial energy separately.
2.28.6 The energy consumption during the FY 2009-10 is 11.08 MU and if the
reduced rate of 150 paise (Rs 5.00-Rs 3.50) is adopted for this EHT
services, then probable impact on revenue of TNEB will be Rs 1.75
Crores. The activities carried out in this non traction HT service are for

40

mixed purpose such as Railway station, residential, commercial etc.

Hence, the existing tariff HT Tariff III may be continued.
2.28.7 HT supply points with major pumping loads be classified under HT II A.
The energy consumption during the FY 2009-10 is 2.18 MU and if the
reduced rate of 3.18 paise ( Rs 6.38-Rs 3.20) is adopted for this EHT
services, then probable impact on revenue

of TNEB will be Rs 0.69

Crores.. Hence, the existing tariff HT Tariff III may be continued.

2.28.8 LT supply points for level crossing gates be classified under LT II A. The
energy consumption during the FY 2009-10 is 1.06 MU and if the reduced
rate of 2.20 paise ( Rs 5.90-Rs 3.70) is adopted for this EHT services,
then probable impact on revenue

of TNEB will be Rs 0.23 Crores..

Hence, the existing tariff LT Tasriff V may be continued.

2.28.9

SC No 1002 at MRS/Villivakkam be exempted from availing supply at

110 kV or may be permitted to continue at 33 kV as a special case without
any penalty till completion of the codal life of the existing 33 kV
transformers.

2.28.10 The energy consumption during the FY 2009-10 is 67.53 MU and if the
reduced rate of 10 paise ( excess levy collected ) is adopted for this EHT
services, then probable impact on revenue of TNEB will be Rs 0.67
Crores.
2.28.11 The energy consumption during the FY 2009-10 is 7.86 MU and if the
reduced rate of 10 paise ( excess levy collected ) is adopted for this EHT
services, then probable impact to additional revenue of TNEB will be Rs
0.08 Crores

2.29

Commissions Views on the objections / comments / suggestions

2.29.1 General Issues :

(1) The Commission examined various issues raised by different stakeholders
and the

response of the TNEB. These issues were raised in the written

comments received by the Commission as well as highlighted during the

41

hearings held at different locations. The views expressed by the TNEB

are in the form of response to the comments of individual stakeholders
and the response of Chairman, TNEB at the conclusion of hearings in
each location. The Commission would like to make a summary comment
on these issues.
(2) The issue of Transmission and Distribution losses is discussed separately.
(3) The Board has approached the Commission after 7 years for a tariff
revision.
(4) During the 7 years period, the accumulated losses upto 2007-2008 is Rs.
9642.53 Crores based on the audited accounts and Rs. 16774.47 Crores
based on un-audited accounts for the year 20082009. Even in the
subsequent years 20092010 and 2010-2011, the Board has indicated
losses in each of the years. The analysis on expenditure on individual
item is discussed under respective heading separately in this order.
(5) The major reasons for the loss are shortage of power, exponential growth
of demand and the need for power purchase from the market at high price
coupled with tariff remaining constant for a period of 7 years,
notwithstanding the increase in various input costs. The Commission is
concerned with
a) the accumulated losses upto the current year and
b) the continuing losses during the ensuing period.
(6) The first step should be for reversing the trend and to cut down the losses.
Simultaneously the treatment of accumulated losses needs to be
considered carefully at the time of unbundling of the TNEB. This issue
has also received the attention of the Central Government at the time of
formulation of National Electricity Policy (NEP) under Section 3 of the
Electricity Act, 2003 and finalized in consultation with State Governments.
The NEP stipulates that For ensuring financial viability and sustainability,
State Governments would need to restructure the liabilities of the State
Electricity Boards to ensure that the successor companies are not
burdened with past liabilities. The past burden of the utility should not be

42

passed on to the future consumers as also decided in some of the

judgments of Courts even in the short term. Further, in accordance with
the Government of Indias Tariff Policy, under business as usual
conditions, the opening balances of uncovered gap must be covered
through transition financing arrangement or capital restructuring.

The

Commission has also sent a statutory advice to Government of Tamil

Nadu in this regard in their letter dated 04-05-2010.

The present

endeavour is to add generation capacity, resort to demand side

management, improve efficiency in operation, so that the trend of losses
be arrested. It is also stated that barring commercial consumers, all other
consumers are paying below costs. At the same time, the Board has
proposed to increase tariff only to certain category of consumers leading
to increase in revenue of Rs.2000 crores leaving a huge gap. The TNEBs
proposal is to create a Regulatory asset which could be recovered from
the consumers in future. It is to be noted that the regulatory asset is
actually a liability to be recovered from the consumers by the TNEB in
future years. With the continuing deficit of the Board, it is not possible to
amortize the regulatory assets within the next 3 years as stipulated by the
tariff policy. These issues can only be dealt with in the long term and no
short term solutions are available. If they are to be recovered in the short
term, there will be a huge tariff shock to almost all categories of
consumers. The Commission is not aware of the approach of the State
Government, with regard to subsidy as the Government would be deciding
the subsidy after the announcement of tariff by the Commission. The
practice adopted by the neighbouring state of Andhra Pradesh which is
almost similarly placed to Tamil Nadu in respect of the demand served,
energy served and consumer mix etc. is to indicate the stand of the
Government with respect to subsidy in advance. It is seen from the latest
order issued by the APERC that the AP Government gave direction to
APERC under section 108 to maintain uniform tariff across the state and
also considered subsidy to the extent of Rs.3652.81 Crores before the

43

issue of the order and APERC has

distributed the subsidy for the 4

Discoms at the time of issuing the order. The TNERC leaves this issue to
the best judgment of the Government of Tamil Nadu for appropriate
action.
(7) As regards demand-supply position, the TNEB has indicated that the
Capacity Addition Programme undertaken by them would start yielding
results from the middle of next year i.e. 2011 with various units at Mettur,
North Chennai and Vallur Thermal Power Projects getting commissioned
and Koodankulam Nuclear Power Project would also bring in about 960
MW of additional power. There are some more projects in the pipe line.
With the commissioning of these power plants, additional capacity will be
available to meet the demand.

At that stage, the purchase from the

market upto 2000 MW or about 20 million units per day would come down
and the average power purchase cost will also get reduced accordingly.
That is the stage at which the trend of losses are likely to be reversed.
(8) Almost all categories of consumers are objecting to the tariff hike
proposed by TNEB. It should be noted that the tariff hike proposed by
TNEB is not to recover the entire gap in ARR but only about 20% of the
gap is

proposed to be recovered through tariff hike.

The balance is

proposed to be deferred to future years and to be shown as regulatory

assets in this tariff order. Some of the consumers have suggested a
modest tariff hike as there has been no tariff hike in 7 years and the input
costs have gone up.

The Commission is concerned with the state of

health of the utility. The utility should be healthy enough to serve the
consumers. At the same time attempting to recover the entire revenue
gap in one go would result in a huge tariff increase for all consumers and
may not be a viable option. The Commission has to take a balanced view
with regard to tariff hike. If the utility had been filing tariff petitions at
regular intervals, there could have been modest tariff increase year after
year avoiding the need for a huge hike in one year. The Commission

44

hopes that with this experience, the Board and its successor entities would
file tariff petitions at regular intervals in future.

2.29.2 Quality of Supply:

(1) The concern expressed by various consumers with regard to the quality of
supply is very relevant.

The Commission has

already notified the

Performance Standards and Regulations, which stipulate the quality of

supply levels to be maintained by the Utility. While overall standards may
be maintained by the Utility, it is quite possible that some chronic
problems may exist in the system.
(2) The common problems expressed by the consumers include low voltage,
overloading and burning of transformers, cable failures, load shedding etc.
While load shedding is directly related to the availability of power and the
ability of TNEB to purchase power at high cost, the other issues are
technical in nature and will need investment in improving last mile
connectivity.
(3) The distribution planning to be done by the TNEB, duly taking into account
the requirements of Supply Code, Distribution Code etc. would go a long
way in improving the quality of supply.
(4) The Commission believes that TNEB has its own in-house guidelines with
regard to operation and maintenance of distribution system. Adequate
transformation ratio will have to be created depending on the requirement.
HT/LT ratio needs to be improved.
(5) The distribution transformers are to be metered to get the profile of the
voltage, down time as well as the energy. Normally load on transformers
should be limited to the extent of 80% of the rated capacity to prevent
failures etc.
(6) The cables should be properly selected to prevent overloading and
frequent failures. The voltage at the tail end needs to be monitored at
regular intervals. Proactive action on the part of TNEB will go a long way
in reducing the consumers complaints and improving their satisfaction.

45

(7) Erection procedure and safety requirements as per section 53 of

Electricity Act, 2003 should be followed in letter and spirit.
(8) As far as consumers are concerned, these complaints could be taken up
with the Utility directly and in the absence of corrective action by TNEB,
the issue could be taken up with the Consumer Grievance Redressal
Forum (CGRF) for Redressal of grievances. In case the consumer is not
satisfied with the Order of CGRF, an appeal could be preferred to the
Ombudsman. The Regulations relating to CGRF and Ombudsman could
be referred from the website of the Commission.

2.29.3 Metering and Energy Audit :

(1) Section 55 of the Electricity Act envisages that all connections shall be
energised through a correct meter. The relationship between Utility and
the Consumer is through the meter. The specification of the meters has
already been laid down by Regulation by the Central Electricity Authority
(CEA) in accordance with the Act. A time bound programme for 100%
metering needs to be worked out by TNEB and submitted to the
Commission. This shall be done within six months of the issue of this
Order.
(2) It is also necessary to meter all the feeders and the distribution
transformers and the meters shall have the facility for remote reading.
Appropriate technology needs to be selected and SCADA / data
management system needs to be established. Such an arrangement will
enable carrying out of Energy Audit and will also facilitate Demand Side
Management (DSM). In the interim period, the TNEB is directed to submit
the programme for carrying out the Study for Assessment of Transmission
and Distribution (T&D) losses. This will help in properly assessing the
power purchase to be allowed for an estimated sales projection.
(3) The Regulation issued by the CEA envisages installation of Static Meters
for all consumers. The Static Meters will help in reduction of tampering,

46

identifying various parameters, downloading of data, introduction of time of

the day tariff etc. besides reducing billing errors.
(4) It is also necessary to install Availability Based Tariff (ABT) compliant
meters for the purpose of measurement of real power and reactive power
at interface points in intervals of 15 minutes. The ABT compliant meters
are essential for the purpose of proper grid management, sending
commercial signals for ramping up / backing down of generations and
increase / decrease of load.

2.29.4 Cost of Supply :

(1) The Cost of Supply depends on the power purchase cost and the
distribution cost. Currently, the power purchase cost of TNEB consists of
power purchased from regulated entities namely Central Public Sector
Undertakings like NTPC etc., TNEBs own generating stations and
bilateral power purchase through traders and through power exchange.
The more the regulated power, the lower the average power purchase
cost. With the commissioning of new power stations, power purchase
from open market will gradually be reduced and more and more regulated
power will be available to TNEB.
(2) The National Tariff Policy (NTP) envisages that the tariff for consumers
should be within + 20% of the average cost of supply. It can be seen from
the Tariff Schedule that most of the consumers pay tariff within this range
except for huts and agricultural consumers. A proper view of tariffs for
these categories can be taken only when their actual consumption is
known. Even after ascertaining the consumption and setting up of the
tariff on realistic basis, if the policy of free power is to be continued, the
same may have to be provided by the Government by way of subsidy.
The same logic is true for domestic consumers who are subsidised at
present. As already stated, in the long run, a healthy electricity utility is
necessary for serving the interests of the consumers.

47

2.29.5 Generation / Power Purchase :

(1) Normative parameters are fixed by the Commission for various power
stations owned by the TNEB.

Based on the details furnished by the

TNEB, the Commission had relaxed the Station Heat Rate (SHR) and
auxiliary (AUX) consumption for some of the power stations.

The

Commission observes that the procurement of domestic coal and imported

coal is based on the coal linkages provided for these power stations and
also the necessity for importing coal as prescribed by the Central
Government to meet the shortages.
(2) It should be noted that the State has a huge installed capacity of about
5000 MWs of wind turbines, mostly owned by the private generators.
These Wind Energy Generators (WEG) operate in two ways : while some
of them supply power directly to the TNEB, others have banking and
wheeling arrangement with the TNEB for their captive use.
Orders of the Commission govern these transactions.

Separate

The power

purchase by TNEB is decided by the Commission in this Order

commensurate with the estimated sales forecast and the estimated
Transmission and Distribution (T&D) losses.
(3) After accounting for the power availability from the Central Public Sector
Undertakings, TNEBs own generating plants, IPPs in Tamil Nadu, wind
generators, captive power plants etc., the additional power requirement
arising out of mismatch in demand and supply is being allowed by way of
bilateral trade, drawal from the grid through UI mechanism as per orders
of CERC etc. The surplus power available with the TNEB is accounted for
as bilateral sale / supply to the grid through UI mechanism.

2.29.6 Tariff categorization

Tariff categorization is dealt with in the tariff schedule.

48

2.29.7 Demand Side Management:(1) To meet the demand-supply position in the short term, the Demand Side
Management (DSM) is an effective tool.
(2) It is also a cheaper option as compared to capacity addition.
(3) It further enables in reducing Carbon emission and also defers investment
to subsequent years.
(4) The importance of Energy Conservation and Demand Side Management
is well understood by the utility as well as the consumers.
(5) The National Electricity Policy envisages that adoption of energy efficiency
and Demand Side Management would lead to potential energy savings.
(6) It is necessary to create awareness among users for promoting Energy
Conservation and Demand Side Management.
(7) Efficiency improvements need to be carried out in all sectors viz.
domestic, agriculture and industry.
(8) While industry is expected to adopt quickly to Energy Conservation and
Demand Side Management, the domestic and agricultural sector needs to
be motivated to adopt these measures.
(9) Awareness has to be created for using Star Labelled appliances which
may cost more but would pay back by way of energy savings.
(10) The Commission is of the view that the utility should direct the field staff
to create such awareness among the consumers.
(11) The Government of Tamil Nadu has notified the Chief Electrical
Inspector of Government of Tamil Nadu as a nodal agency for Energy
Conservation. The functions of the Electrical Inspectorate are different
in nature.
(12) Instead, the Tamil Nadu Electricity Development Agency (TEDA) could
be designated as nodal agency for the purpose of Energy Conservation,
who can work in tandem with TNEB for effectively implementing Energy
Conservation and Demand Side Management.
(13) Use of CFLs needs to be increased with adequate arrangement for
disposal of the unserviceable CFLs.

49

(14) Awareness programmes could be conducted in various schools on a

regular basis for inculcating Energy Conservation among children.
(15) As regards agricultural sector, usage of the pumpsets needs to be more
efficient and the entire pumping including the piping needs to be
designed in such a way that energy spent in pumping is minimized.
(16) Sprinkler Irrigation System on which extensive research is being done all
over the world including India could be adopted for the purpose of
irrigation. This may help in conserving both electricity and water.
(17) As far as the industrial sector is concerned, it may be appropriate to
conduct energy audits in individual units and approved ESCOs could be
inducted for conducting such energy audits and improvements in the
processing industry could be undertaken through different models
available.
(18) The investment for efficiency improvement could be done by the industry
itself depending upon the economics or alternative mechanisms are
available wherein ESCOs may invest and improve the efficiency and
recover the cost incurred through the savings in electricity bills.
(19) Promotional effects are required to be done by the utility to motivate the
end-users of electricity to carry out such studies and improvements.
(20) The Commission would not hesitate in granting adequate funds for such
purpose if a proposal is received from TNEB.
(21) Provisionally, the Commission allows Rs.10 Crores in this ARR for the
purpose of carrying out the activities of Energy Conservation and
Demand Side Management.

2.30

Commissions Suggestions

2.30.1 CREATION OF A REGULATORY CELL IN TNEB

(1) TNEB is a major utility handling more than 10,000 MW of power and
supplying over 200 million units of electricity per day. It has to take an
active part in various proceedings before the Central Electricity
Regulatory Commission (CERC) with regard to power purchase from

50

Central Sector Utilities as well as in the fixing of transmission service

charges in respect of Power Grid Corporation of India Limited (PGCIL).
TNEB is also required to interface with the TNERC right from the stage of
regulation,

tariff

petition,

dispute

resolution

petitions

and

other

miscellaneous petitions involving disputes between the licensee and

generating companies. There are a large number of wind energy
generators and captive power plants. They are also consumers of the
TNEB. To effectively project the view points of the TNEB before the
TNERC and CERC, this Commission is of the opinion that creation of a
Regulatory Cell within TNEB and imparting proper training to those
officials will be to the best advantage of the Board. As and when the
TNEB is unbundled such a Regulatory Cell may have to be created in
both the TANGEDCO and TANTRANSCO. Almost all the utilities in India
starting from NTPC, PGCIL and various Electricity Boards and their
successor entities after unbundling have established a Regulatory Cell in
their organisations. The TNEB and their successor entities are advised to
take appropriate action to create such a Regulatory Cell.

The

Commission may be informed of action taken within a period of six

months.

2.30.2 AGRICULTURE
(1) The Commission in the Tariff Order of 2003 has prescribed a tariff of
Rs.250 per HP per annum for agricultural connections.

Wherever the

agricultural supply is metered, the applicable tariff is 20 paise per kWh.

Besides the LT agricultural connection, the TNEB has

also provided

service connection to a group of farmers for the purpose of lift irrigation,

the tariff for which was fixed at 50 paise per kWh.

The Government

extended supply of free power to all agriculturists and accordingly granted

subsidy in respect of all agricultural connections at LT level.
consumers at HT level were not provided with subsidy.
subject matter of a Writ Petition CMA No.

931/2004

However,

This was the

which was

51

remanded to the Commission by the High Court of Madras. Since the

Commission has fixed tariff to all the agricultural consumers below the
cost for LT and HT consumers, the Commission did not provide any relief
to the HT consumers for the back period. Agricultural consumers provided
with HT connection were advised to approach the Government for
subsidy. It is understood that there are only 11 such cooperative sangams
which receive HT supply for Lift Irrigation.
(2) During the hearing in various centres, a view was expressed by a group
of agricultural consumers that earlier water was being supplied free of cost
through irrigation canals. However most of the agriculturists now depend
on well irrigation and water level having gone down, electricity should be
provided free of cost for pumping water, akin to water being made
available free. The Commission observes that in some of the States like
Maharashtra, Water Regulatory Authority has already been set up and
regulations are being made by them for efficient use of water including
pricing of the same for various applications. A view was also expressed
that the subsidy provided for electricity consumers is around 2% of the
Budget in Tamil Nadu and there should be no objection in raising the
subsidy to 4% or 5% of the Budget.
(3) The Commission has been advocating measuring of electricity supplied to
various consumers.

In fact, Section 55 of the Electricity Act envisages

supply of electricity through correct meters.

The specification of the

meters has already been laid down by the Central Electricity Authority
way back in May 2006.

Extension of time was sought from the

Commission for providing meters for all service connections which has
been granted for a period of 3 years from 2009. The Commission has
also directed the TNEB to install meters on all feeders so that energy audit
could be conducted. Besides, an estimate of the agricultural consumption
was also to be made by a scientific process. The TNEB has indicated in
its petition that an expert was appointed and he has conducted some
studies and submitted a report which is known as Raheja Report. Time

52

and again it has been reported that they had difficulty in Run time error
and accordingly the matter did not progress further. The Commission is
unable to accept this explanation of Run time error. Sincere efforts should
have been made to assess the energy supply in various feeders and the
same should have been compared with the energy for which revenue has
been realized and to work out the transmission and distribution losses as
well as commercial losses separately. This has

not happened. In the

absence of such an exercise, all unmetered consumption as well as the

losses are estimated based on certain assumptions. Until and unless the
assumptions are clearly validated by a third party, the Commission finds it
difficult to accept the figures furnished by the Petitioner. It should also be
noted that a wrong estimation of AT&C losses would underestimate the
power purchase requirement and the fallacy of such an estimate would be
seen at the end of the year, when the actual power purchase is more than
the estimated power purchase. It will be relevant to refer to Government of
Indias Tariff Policy with regard to power purchase which is extracted
below.
8.2.1 The following aspects would need to be considered in determining
tariffs:(1) All power purchase costs need to be considered legitimate unless it is
established that the merit order principle has been violated or power has
been purchased at unreasonable rates.

The reduction of Aggregate

Technical & Commercial (ATC) losses needs to be brought about but not
by denying revenues required for power purchase for 24 hours supply and
necessary and reasonable O & M and investment for system upgradation.
Consumers, particularly those who are ready to pay a tariff which reflects
efficient costs have the right to get uninterrupted 24 hours supply of quality
power. Actual level of retail sales should be grossed up by normative
level of T & D losses as indicated in MYT trajectory for allowing power
purchase cost subject to justifiable power purchase mix variation (for
example, more energy may be purchased from thermal generation in the

53

event of poor rainfall) and fuel surcharge adjustment as per regulations of

the SERC.

(4) From the above it could be seen that the actual level of retail sale needs to
be grossed up by normative level of T & D losses for allowing power
purchase costs. It is therefore necessary to properly estimate the AT & C
as well as T & D losses. Till such time 100% metering is done and AT&C /
T&D losses are calculated based on actual meter reading, the
Commission directs that the TNEB shall carry out an exercise to arrive at
proper estimate of AT & C and T & D losses within a period of six months.
(5) Now coming back to the consumption in case of unmetered connections,
till such time meters are installed for the purpose of carrying out estimate,
feeder metering becomes important. It has been reported by TNEB that
all feeder meters have been installed. The data shall be collected from all
Feeders/Distribution transformers and energy audit shall be carried out at
various voltage levels to properly estimate the transmission losses and the
distribution losses which will also be necessary to establish proper bench
mark for the transmission loss and distribution loss separately. For the
present tariff exercise, the Commission is guided by the normative AT &
C loss level prescribed.

The TNEB in their petition have indicated a

constant AT & C loss of 18%. They explain that the loss level is
maintained at 18% in view of the fact that they are undertaking huge
electrification work and also there is an increase in the number of
consumers. This needs to be duly supported by data. This is precisely
the reason why the Commission is suggesting installation of meters in all
feeders/distribution transformers and carrying out energy audit.

This

exercise, if done before the tariff exercise will facilitate proper estimation
of AT & C and T & D and will also facilitate providing necessary
allowances for the same and also to allow power purchase cost covering
all reasonable expenses.

54

(6) The figures furnished by the TNEB for 2009-10 indicate that the total
energy injected into the grid was 69,144 MU. After providing for
transmission and distribution loss at 18%, the energy available for sale
was 56,698 MU. The energy consumed by sectors other than agriculture
was 44,780 MU. By elimination, the energy consumed by the agriculture
sector should be 11,918 MU. The average cost of supply of the Board
during 2009-10 was Rs.4.89 per unit. Therefore, the realisation from the
agriculture sector should have been Rs.5,828 crores, against which the
subsidy received from the Government for 2009-10 was Rs.267 crores.
(7) In the absence of metering of agricultural consumption it has not been
possible to determine the consumption in each service connection. The
total capacity of agricultural connection indicated by the TNEB is 1.07
crores HP. This is a gross under estimation. Suffice to say that the subsidy
towards agricultural consumption determined on the basis of the capacity
indicated by the TNEB is vastly inadequate to cover the actual expenditure
incurred by the TNEB. The gap between the expenditure incurred by the
TNEB and the subsidy paid by the Government is vastly responsible for
the poor financial health of the TNEB. This is a matter which the
Government and the TNEB should sort out for restoring the financial
health of the TNEB. It is pertinent to note that the Government of Andhra
Pradesh offered a subsidy of Rs.2146 crores for the agricultural sector
during 2009-10 against the total subsidy of Rs.3486 crores paid to the
utilities.
(8) It is seen from the latest tariff order of APERC issued on 22-7-2010 that
the Government of Andhra Pradesh have committed to provide total
subsidy to the extent of Rs.3652 crores under Sec.65 of the Electricity Act
2003. Andhra Pradesh and Tamil Nadu are identically placed with regard
to the demand for power and energy, consumer mix etc.
(9) In the absence of metering of agricultural consumers , it is necessary for
the TNEB to measure their actual load and consumption so that higher
subsidy is available to TNEB.

55

2.30.3 Employees cost Terminal benefits

(1) The tariff petition filed by TNEB includes terminal benefits for the control
period besides salary, allowances etc. The Commission addressed TNEB
in August 2008 (Ref. No.D.1208/08, dated 25-08-2008) regarding payment
of pension and gratuity. The Commission observed that while pension
contribution was nominal, pension payments were phenomenal and the
deficits were met from the revenue. Similar was the case with regard to
gratuity payment. The Commission observed in that letter that pension
and gratuity payment to the extent of Rs.1000 crores per annum is paid on
due basis instead of creating adequate reserve for the same.
Commission directed

The

the TNEB to conduct a study and assess the

probable amount of pension liability and submit a report at an early date.

The Commission has not received any response from the TNEB in the
matter so far.
(2) The terminal benefits indicated for various years of the control period by
the TNEB is as follows:
2010 11

- Rs. 1209.98 crores

2011 12

- Rs. 1258.37 crores

2012 -- 13

- Rs. 1308.71 crores

(3) The terminal benefits account for almost 40% of the employees
expenses.

This needs to be examined in the context of regulatory

practices to be adopted.

(a) Charging of terminal benefits in tariff will result in present cost being
passed on to the future consumers.
(b) In most cases a Corpus is created for meeting the terminal benefits of
employees. The corpus should have adequate balance so that it will
be able to meet the requirements of terminal benefits of employees.
For this purpose an actuarial study may have to be carried out to

56

decide the amount to be credited in the corpus so that the quantum of

fund requirement for the corpus maybe arrived at properly.

The

Commission would also like to be guided by the Transfer Scheme to

be issued by Government of Tamil Nadu on unbundling of the TNEB.
The TNEB is directed to examine this issue and submit a proposal for
the same to the Commission.

This exercise should be carried out

within a period of six months.

57

CHAPTER 3
ENERGY REQUIREMENT
3.1

Sales Forecast

3.1.1 Regulation 71 (Sales Forecast) of Tariff Regulation stipulates the

following:
(i) The accurate projection of category-wise sales is very essential for the
assessment of energy input requirement so as to determine the quantum
of generation and quantum of energy to be purchased for the correct
assessment of revenue requirement for generation and power purchase.
(ii) The TNEB, Distribution Licensee shall formulate long-term demand
forecast as stipulated in sub-clause (4) of clause 6 of The Distribution
Code and get the forecast approved by the Commission.
(iii) The Licensee may adopt a suitable methodology like CAGR to arrive at
the category-wise sales for the Base Year i.e. for the Current Year.
(iv) The Licensee shall forecast demand and sale of electricity for different
categories of consumer in his area of supply for ensuing year, and for a
period of three years taking into account the long term demand forecast
already approved and also subsequent changes in situation, if any.
(v) The Commission shall examine the forecast for reasonableness based on
growth in number of consumers and consumption of electricity in the
previous years and anticipated growth in the next year and any other
factor that the Commission may consider relevant and approve sale of
electricity to consumers with such modification as deemed fit.
3.1.2 The TNEB submitted on 25 -08-2005, Load and Demand forecast for the
period from 2005-06 to 2011-12 and for 2016-17 (end of 12th Plan) and
2021-22 (end of 13th Plan period) based on CAGR for nine years previous
to 2005-06 to comply with the provisions in the Tamil Nadu Electricity
Distribution Code. The TNEB had not furnished load and demand forecast
subsequently taking into account the subsequent changes in the
consumption pattern etc., prior to filing the petition.

58

3.1.3 The category-wise Energy and Demand Projections for 2007-08 to 201112 furnished by TNEB based on CAGR for 9 years from 1995-96 to 200405 were as below :
Table 2: Demand and energy forecast by TNEB upto 2011-12
Tariff

Category

2007-08

High Tension

2008-09

Inds.

Incl.

2010-11

2011-12

Sales

Sales

Sales

Sales

Sales

MU

increa

MU

increa

MU

increa

MU

increa

MU

increa

se
I-A

2009-10

se

se

se

se

Rly.

11685

3.20

12060

3.21

12446

3.20

12844

3.20

13256

3.21

Rec. Edu. Inst., Public

769

6.81

821

6.76

877

6.82

937

6.84

1001

6.83

and

1038

2.17

1060

2.12

1083

2.17

1106

2.12

1129

2.08

IV

Lift Irrigation Societies

Puducherry

Traction
II-A

Worship etc.
III

Commercial
others

HT Total

427

6.75

456

6.79

486

6.58

518

6.58

553

6.76

13919

3.42

14397

3.43

14892

3.44

15405

3.44

15939

3.46

12921

10.12

14228

10.12

15668

10.12

17253

10.12

18998

10.11

Low Tension
I-A

Domestic

(and

Notified tariff from 0304)

I-B

Huts

II-A

Street Lights & Water

231

8.45

251

8.66

273

8.76

297

8.79

323

8.75

1467

8.99

1598

8.93

1741

8.95

1897

8.96

2067

8.96

381

7.02

408

7.09

436

6.86

467

7.11

500

7.07

340

12.96

383

12.65

433

13.05

488

12.7

551

12.91

Supply
II-B

Rec. Edu. Inst., Public

Worship etc.

III-A(1)

Cottage Industries

III-A(2)

Power Looms

III-B

Industries

984

12.84

1111

12.91

1254

12.87

1416

12.92

1598

12.85

4389

6.01

4652

5.99

4932

6.02

5228

5542

6.01

11425

4.64

11955

4.64

12511

4.65

13092

4.64

13700

4.64

3252

5.93

3444

5.90

3648

5.92

3864

5.92

4093

5.93

LT Total

35390

7.41

38030

7.46

40896

7.53

44002

7.59

47372

7.66

Total

49309

6.25

52427

6.32

55788

6.41

59407

6.49

63311

6.57

IV

Agriculture and HT Lift

Irrigation

Commercial

and

Others

3.1.4 The TNEB in para 1.2 of the Petition have stated that the energy
requirement of the State has been growing at a rate of 8-10% every year
3.1.5 The TNEB has made the following consumer category wise demand sales
projections in the ARR:

59

Table 3 : Demand sales projections by TNEB up to 2012-13

Tariff
Category
High Tension

2007-08
Sales
%
MU
incre

2008-09
Sales
%
MU
incre

I-A

Inds.
Incl.
Rly.
Traction
Rec. Edu. Inst.
Public Worship etc.
Commercial
and
others
Lift
Irrigation
Societies
Supply
to
Puducherry
Supply to other
states

15434

11.20

14247

-7.69

16562

16.25

17942

8.33

19438

8.34

21058

8.33

872
2
1408

6.99
0
14.38

885
3
1431

1.49
50.00
1.63

936
4
1514

5.76
33.33
5.80

998
4
1671

6.62
0.00
10.37

1064
4
1844

6.61
0.00
10.35

1135
4
2034

6.67
0.00
10.30

28.57

0.00

11

22.22

12

9.09

14

16.67

15

7.14

393

5.93

373

-5.09

420

12.60

445

5.95

471

5.84

499

5.94

193

-8.10

HT Total
Low Tension
I-A
Domestic
(and
Notified tariff from
03-04)
I-B
Huts
I-C
Bulk Supply
II-A
Public Lighting &
Water Supply
II-B
Rec.
Education
Inst. Etc.
II-C
Places of Public
Worship
III-A(1)
Cottage and Tiny
Industries
III-A(2)
Power Looms
III-B
Industries
IV
Agriculture
V
Commercial
and
Others
Temporary supply
LT Total
Total

18328

8.89

17141

-6.48

19447

100.00
13.45

21072

8.36

22835

8.37

25200

10.36

12575

4.50

13387

6.46

13709

2.41

14524

5.94

15578

7.26

16309

4.69

190
3
973

2.70
0
-24.86

195
12
1213

2.63
300.00
24.67

216
3
1043

10.77
-75.00
-14.01

229
4
1077

6.02
33.33
3.26

243
5
1111

6.11
25.00
3.16

258
6
1147

6.17
20.00
3.24

335

6.69

595

77.61

357

-40.00

471

31.93

620

31.63

817

31.77

68

13.33

115

69.12

74

-35.65

78

5.41

83

6.41

88

6.02

264

1.54

610

131.06

284

-53.44

416

46.48

610

46.63

895

46.72

672
4585
11107
3720

4.51
2.94
4.77
7.30

799
3800
11499
3660

18.90
-17.12
3.53
-1.61

720
4924
11918
3992

-9.89
29.58
3.64
9.07

749
4912
12870
4329

4.03
-0.24
7.99
8.44

779
4902
14116
4695

4.01
-0.20
9.68
8.45

811
4893
15245
5092

4.11
-0.18
8.00
8.46

11
34503
52831

0
3.53
5.33

39
35924
53065

254.55
4.12
0.44

11
37251
56698

-71.79
3.69
6.85

19
39679
60751

72.73
6.52
7.15

33
42775
65610

73.68
7.80
8.00

56
45617
70817

69.70
6.64
7.94

ase
II-A
II-B
III
IV
V

210

2009-10
Sales
%
MU
incre

ase

2010-11
Sales
%
MU
incre

ase

2011-12
Sales
%
MU
incre

ase

2012-13
Sales
%
MU
incre

ase

ase

455

3.1.6 The total demand projection furnished by TNEB in 2005 and sales
projection now furnished in the Tariff petition are compared with the total
consumption as per the forecast in 17th Electric Power Survey are as
below:
th

Table 4 Comparison of demand projection by TNEB with 17 Electric Power

Survey projection

Sl.No.

Year

1
2
3
4
5
6

2007-08
2008-09
2009-10
2010-11
2011-12
2012-13

Demand
forecast
furnished in 2005
(in MU)
49309
52427
55788
59407
63311

Projection in
Tariff petition
(in MU)
52831
53065
56698
60751
65610
70817

Total consumption as
per 17th EPS (in MU)
50898
55536
60762
66786
73703

60

3.1.7 The forecast in the 17th power survey is on the higher side.
3.1.8 The TNEB has stated the following in the tariff petition:
The load forecast takes into account underlying economic growth and
other forces that affect electricity consumption in the major categories of
load. An attempt has been made to refine the forecasts in the wake of
economic outlook for the state and check that they are consistent with the
likely movements of the principle macroeconomic parameters of demand.
The basic parameters underlying load forecast are:

Sales data up to FY 2008 has been used for analysis

Managing agricultural demand, and

Rationalisation of tariffs which include incentive structure for HT

consumers, increase in tariffs at inflationary level for subsidizing
categories and increase in tariffs for subsidized categories including
agriculture.

3.1.9 However, it is seen from the projection and the tariff proposed that the
above parameters have not been adopted.
3.1.10 The TNEB has furnished the following reply to the Commissions
observation that the demand and energy forecast have not been
supported with any detailed report to indicate the methodology, CAGR,
comparison with national level forecast under power survey etc.,
1. The demand and energy forecast of HT and LT services (various tariff)
have been arrived at in respect of 2010-11, 2011-12 and 2012-13 based
on the average growth, rate of consumptions as recorded in earlier years
namely 2006-07, 2007-08 and 2008-09. The average growth rate adopted
in respect of HT and LT are furnished below:
HT category

Percentage

IA

8.33

II A

6.66

III

10.35

IV

9.52

5.96

61

In respect of LT average growth rate for IA , II A , II B, IIIA-1, III A 2, V

and VI are 6.60%,3.20%.31.70%,46.60%, 4.00%,8.40% and 70.70% and
these have been adopted.
2. Demand and energy forecast for 2009-10 have been arrived at based
on the proportionate consumption made in 2007-08 only since it is in R &
C period
In case of category I B and IIC growth rate of 6% has been adopted
3.1.11 Perusal of the sales projection show the following:
(i) The sales for 2007-08 have been taken as per audited accounts and for
2008-09 as per preliminary annual accounts. There is an overall growth of
0.44% only from 2007-08. There is negative growth in the consumption by
industrial consumers both HT and LT. However the sales for 2009-10 has
been adopted at a level nearer to the level as adopted for BE 2009-10,
with an increase of 16.25% for HT industrial consumers and 29.58% for
LT consumers. The TNEB has stated that the sale for 2009-10 has been
arrived at in proportion to the sales in 2007-08 (without R & C measures).
The overall growth for ensuing years are as follows:

a). 2010-11

- 7.15% over 2009-10

b). 2011-12

- 8.00% over 2010-11

c). 2012-13

- 7.94% over 2011-12

(ii) As per Regulation 71 (5) of TNERC Tariff Regulation, the Commission

shall examine the forecast for reasonableness based on growth in number
of consumers and consumption of electricity in previous years. The details
of consumers and consumption from 2003-04 were examined and it is
seen that growth both in the number of consumers and consumption are
not uniform. The percentage of increase in number of consumers and
sales from 2003-04 (since previous tariff revision) to 2008-09 were as
below:

62

Table 5 Percentage of increase in number of consumers and sales from 2003-04

to 2008-09

(Year to year percentage increase / decrease)

Sl.

Consumer

No.

category

Tariff

2003-04

Consu

Sales

mer
I

HT

1.

Industries

IA

0.23

2004-05

Consu

Sales

mer

7.90

8.40

2005-06

Consu

Sales

mer

15.95

0.39

2006-07

Consu

Sales

mer

7.40

15.83

21.50

2007-08

2008-09

Consu

Sale

Cons

Sales

mer

umer

6.37

11.2

4.04

-7.69

0
2

Recog.

Edu.

II A

13.26

14.41

6.32

19.36

2.32

15.12

3.54

11.49

1.64

6.99

1.35

1.49

Institutions
3

Public Lighting

II B

50

33.33

00

25

50

Commercial

III

-5.04

-19.74

2.80

7.10

2.27

9.18

1.24

15.05

9.98

14.3

6.45

1.63

8
5

Lift Irrigation

II

LT

IV

9.09

-33.33

16.67

1
2

Domestic

IA

7.31

9.98

2.48

-0.45

4.49

14.23

Huts

IB

-30.29

4.22

0.97

4.05

3.93

1.11

Bulk Supply

IC

14.69

18.47

Public Lighting

II A

2.25

4.05

Recog.

II B

-0.39

-10.86

1.66

11.34

II C

63.05

158.8

17.86

30.10

14.36

34.84

2.84

Edu.

28.57

8.14

8.89

6.00

4.50

0.45

6.46

2.70

1.65

6.33

2.70

7.48

2.63

4.99

50

25.94

-9.12

300

2.93

3.97

7.47

9.84

20.50

-24.8

0.18

24.66

-22.56

6.79

-1

10.95

0.31

6.69

3.21

77.61

4.55

0.69

6.52

106.0

22.45

8.56

13.3

15.0

69.12

5.17

9.77

-15.72

2.54

3.55

7.44

7.95

1.54

10.9

17.75

15.36

7.94

26.55

8.86

19.44

4.23

4.48

0.50

18.94

3.25

0.18

9.17

-8.70

2.91

0.97

3.34

2.94

2.58

-17.12

Institutions
6

Public
Worship

Cottage

&

III

131.08

Tiny Industries

(1)

Power Loom

III

Industries

III B

10

Agriculture

IV

1.58

6.22

2.02

1.83

1.79

0.41

3.22

8.21

1.58

4.77

1.67

3.53

11

Commercial

5.29

5.60

6.83

8.94

6.53

2.95

4.88

19.68

5.25

7.30

6.54

-1.61

(2)

11.31
13.59

(iii) The increase in consumption was not in proportion to the increase in

consumers.
3.1.12 The projections made by the TNEB were examined for reasonableness
with reference to the following
(1) Average growth rate for the period from 2003-04 to 2008-09. (The TNEB
has arrived at the average growth rate for the period from 2006-07, 200708 and 2008-09)
(2) CAGR computed for the period from 2003-04 to 2008-09
(3) Consumer category wise average consumption per consumer
63

(4) Latest actuals in 2009-10

3.2

Commissions sales projections:

3.2.1 HT Industrial Consumers

3.2.1.1 In the petition (page 47), the TNEB has given the following approach for
development of the load forecast for industrial load (low, medium and
High).
The load would depend upon the capital formation as well as the growth in
manufacturing sector. The effect of captive generation is also a major
parameter in determining the future demand growth in industrial HT
sector.

Past trends have shown small increase YOY growth rate in

industrial HT demand, though industrial LT demand has

reasonable

shown

growth. With measures to retain HT clients and neutralize

the impact of captive generation, HT demand is expected to grow at low

YOY rate .
3.2.1.2 However, the actual consumption from 2003-04 to 2008-09 shows a
higher YOY growth rate in HT industrial demand. The average increase
for this period was 9.67% even taking into account the negative growth
rate achieved in 2008-09. There was dip in sales in FY 2009 due to the
R&C measures introduced.
3.2.1.3 The same situation prevailed in 2009-10 also. But, the TNEB has
projected sales of 16562 MUs for 2009-10 (with 16.25% increase). The
TNEB has reported that sales for 2009-10 was arrived at based on the
proportionate consumption in 2007-08 due to implementation of R & C
measures in 2008-09
3.2.1.4 The actual consumption during the year 2009-10 upto February 2010
was 13121 MU.

The sales for 2009-10 are fixed at 14820 MUs as

against 16562 MUs.

64

3.2.1.5 The TNEB has projected an increase of 8.33 % (based on average

increase from 2006-07 to 2008-09) over the sales for 2009-10 to arrive
at the estimated sales for 2010-11.
3.2.1.6 In view of continuous R&C measures, the projected sales for the control
period is fixed with 8.33% increase over the sales of 14820 MUs fixed for
2009-10.
3.2.1.7 The projections for the control period (2010-11, 2011-12 and 2012-13)
shall be as below.
Table 6 Sales projections for HT industrial consumers by TNERC

Tariff

TNEB

Industries
(in MU)

2009-10
16562

2010-11
17942

2011-12
19438

TNERC
2012-13
21058

2009-10
14820

2010-11
16055

2011-12
17392

2012-13
18841

3.2.2 HT - Recognized Educational Institutions etc.

3.2.2.1 The TNEB has projected growth in sales to HT Tariff IIA consumers at
YOY growth rate of 6.6% for the ensuing year FY 2011, FY 2012 and FY
2013 over the sales in FY 2010.
3.2.2.2 The TNEB has projected a sale of 936 MU for 2009-10 with an increase
of 5.76 % over the sale for 2008-09.
3.2.2.3 The actual consumption upto February 2010 was 882 MU and hence,
the projected sale for 2009-10 is fixed at 970 MU.
3.2.2.4 The projections for the control period is fixed with 6.60% increase over
the sale of 970 MU fixed for 2009-10.
Table 7 Sales Projections for HT Recognized educational institutions

(in MUs)
TNERC

TNEB
Parameter
At
the
average rate
6.6%

2009-10 MU

2010-11

2011-12

2012-13

2009-10

2010-11

2011-12

2012-13

936

998

1064

1135

970

1034

1102

1175

65

3.2.3 HT Actual places of public worship

3.2.3.1 There are 5 services in the category and the TNEB has projected a sale
of 4 MUs for all the 3 years. The actual consumption in 2009-10 upto
February 2010 is 4 MU. Hence the projection by TNEB is approved.

3.2.4 HT Commercial
3.2.4.1 The TNEB has stated that they have adopted the following approach for
development of the load forecast for commercial category.
The Commercial load growth is expected to grow again with the increase in
population as well as increased spending. Tamil Nadu primarily being a
service economy (to a large extent) commercial demand growth is
expected to continue growing at an increasing YOY rate during the
projection period.
3.2.4.2 The TNEB has projected sales with YOY increase at 10.35 % for the
ensuing years 2010-11, 2011-12 and 2012-13. There were dips in sales
during 2008-09 and 2009-10 and this decrease might be due to R&C
measures.
3.2.4.3 The actuals upto February 2010 was 1456 MU and hence, the sale for
2009-10 is fixed at 1600 MUs (based on sales in February 2010).
3.2.4.4 The average increase in sales during the period from 2004-05 to 200809 was 9.47% (The increase in sales for 2003-04 was (-) 19.74% and
hence excluded to arrive at the average.)
3.2.4.5 Five years CAGR for this period works out to 9 %.
3.2.4.6 The projection for the control period is fixed with 9% increase over the
revised sales for 2009-10.
Table 8 Sales Projections for HT Commercial
Parameter
2009-10
CAGR 9% (in
MU)

1514

TNEB
2010-11 2011-12
1671

1844

2012-13
2034

2009-10
1600

TNERC
2010- 11 2011-12
1744
1901

2012-13
2072

66

3.2.5 HT Lift Irrigation

3.2.5.1 There are 12 consumers. No increase in Number of consumer has been
projected
3.2.5.2 Actual sales from 2003-04 to 2008-09 and for estimation / projection
from 2009-10 to 2012-13 are as below :
Table 9 Actual sales and Projections for HT Lift Irrigation

MU

2003-

2004-

2005-

2006-

2007-

2008-

2009-

2010-

2011-

2012-

04

05

06

07

08

09

10

11

12

13

11

12

14

15

3.2.5.3 The TNEB has estimated a sale of 11 MU for 2009-10. The actual sales
upto January 2010 was 6 MU. Hence, the Commission fixes the sales at
9 MU for each year of the control period.

3.2.6 Supply to Puducherry

3.2.6.1 The Tariff petition filed by TNEB includes sale of power to the Union
Territory of Puducherry and the projection for various years are as
follows:
(a) 2007-08

393 MU

(b) 2008-09

373 MU

(c) 2009-10

420 MU

(d) 2010-11

445 MU

(e) 2011-12

471 MU

(f) 2012-13

499 MU

3.2.6.2 The Commission desired to know the basis on which power is being
supplied to Puducherry and sought details regarding agreement if any
entered into between the two States. The TNEB has not been able to
produce any agreement for sale of power to Puducherry. In this
backdrop the Commission had examined the tariff orders issued by the
Commission in 2003.

67

3.2.6.3 The position taken by Government of Puducherry during the earlier tariff
determination exercise was that the tariff for supply of energy to
Puducherry should be as per the Tamil Nadu Revision of Tariff Rates on
Supply of Electrical Energy Act, 1978 and the supply shall be charged at
the rates supplied by NLC to the TNEB plus wheeling charge at 10 Paise
per KWh plus 4% on the energy wheeling towards transmission loss.
The State of Puducherry also disputed the jurisdiction of the TNERC to
decide the tariff for Puducherry. The TNEB had expressed a view that
the agreement between TNEB and NLC is a bilateral agreement and the
Government of Puducherry is not a party to this agreement. Since the
cost of supply at the HT end worked out to 303.69 paise, they proposed
to continue charging Puducherry @ Rs.3.00 per kWh under HT Tariff V.
The Commission maintained status quo and continued the then
prevailing tariff of Rs.3 per kWh.
3.2.6.4 Since the Joint Electricity Regulatory Commission for the State of Goa
and Union Territory of Puducherry had issued an order on ARR and
Retail tariff for the electricity department, Government of Puducherry for
the financial year 2009-10 on 5-2-2010 the Commission had examined
that order too and the relevant portion with reference to sale of power by
TNEB to Puducherry is extracted below:
In respect of purchase of power from TNEB the EDP has submitted that initially the
power availed from TNEB was charged at the rate paid by TNEB to NLC plus
wheeling charges. The TNEB has revised the tariff to Rs.3.00per kwh with
effect from 01/12/2001 treating EDP as a HT consumer. The EDP has
challenged this decision by filing a petition before Honble TNERC. The Honble
TNERC concluded that the sale of power between EDP and TNEB was in the
nature of interstate sale of power and EDP cannot be treated as a HT
consumer and ordered to maintain status quo. The EDP has challenged this in
the Honble High Court of Judicature at Madras and stay was granted and the
Hon High Court directed payment to TNEB at the rate charged by NLC plus
wheeling charges. The EDP made the payment accordingly. The main issue
is yet to be decided.

68

3.2.6.5 The Commission would like to observe that in the absence of firm sale
contract between TNEB and the Government of Puducherry and with the
ever increasing sale of electricity to Puducherry by the TNEB, a situation
is being created which has resulted in the TNEB subsidizing the
electricity consumers of Puducherry at the expense of electricity
consumers of Tamil Nadu. Currently, the TNEB itself is facing an acute
shortage of power and has been purchasing power in the open market in
the range of Rs. 5 to 7 per unit. Whereas the sale to Puducherry is at the
rate of Rs.1.94 per unit. TNEB needs to protect the electricity consumers
of Tamil Nadu.

3.2.7 LT DOMESTIC
3.2.7.1 The TNEB has projected sales for the control period as detailed below:
Table 10 Sales projections for LT domestic by TNEB

Sl.
No.
1.
2.
3.
4.
5.

Details

2009-10

No. of Consumers
Consumption in MU
%
increase
in
No.
of
Consumers
% increase in Consumption
Specific
Consumption
(Consumption/Consumer)(units)

14762913 15806712 16924311 18120929

13709
14524
15578
16309
7.07
7.07
7.07
7.07
2.40
928.611

2010-11

5.94
918.850

2011-12

7.26
920.451

2012-13

4.69
900.009

3.2.7.2 The past trend in consumption pattern is as given below:

Sl.
No.
1.
2.
3.

4.
5.

Details
No.
of
Consumers
Consumption
in MU
% increase in
No.
of
Consumers
% increase in
Consumption
Specific
Consumption

Table 11 Past trend in consumption of LT domestic

2003-04
2004-05
2005-06
2006-07
2007-08

2008-09

11181950

11459503

11974293

12948941

13726048

13788042

9719

9675

11052

12034

12575

13387

7.31

2.48

4.49

8.14

0.45

9.98

(-)0.45

14.23

8.88

4.50

6.45

869.168

844.277

922.977

929.342

916.141

970.914

69

3.2.7.3 There is no uniform pattern either in the percentage of increase in the

number of consumers or in the percentage of increase in consumption.
7.07% growth adopted to project the number of consumer is on the
higher side. Also, the increase in (sales) consumption projected also
varies for each year and is not supported by any data.
3.2.7.4 The sales projected for 2009-10 is 13709 MU. The available actuals
upto January 2010 was 13109 MU. Based on the trend of sales upto
January 2010 the sales of 13709 MUs estimated by the TNEB for 200910 is revised as 15535 MUs.
3.2.7.5 The average Consumption per consumer for 2009-10 based on such
revised consumption shall be 1052.299 units.
3.2.7.6 The average increase in the number of consumers from 200304 to 2008-09 is 4.81%.
3.2.7.7 The sales for the control period is fixed based on the average
consumption per consumer as below:
Table 12 Sales projections for LT domestic by TNERC

Details
Average
consumption
per consumer
of
1052.299
units (in MU)

200910
13709

TNEB
2010201111
12
14524
15578

201213
16309

200910
15535

TNERC
2010201111
12
16282
17065

201213
17886

3.2.8 LT HUT
3.2.8.1 The TNEB has Projected Sales for the Control Period at a growth rate of
6.1% over the Sales for 2009-10. The number of Consumers for the
Control Period has been projected with an increase of 4.51% YOY. The
details are as below:

70

Sl. No.

Details

Table 13 Sales projections for LT hut by TNEB

Actuals
Projections
2007-08
2008-09
2009-10
2010-11
2011-12

1.

No. of Consumers

2.
3.

Sales in MU
%
increase
in
Consumption
% increase in number of
Consumers

4.

1114379

1197745

1251809

1308313

1367368

190
2.70

195
2.63

216
10.77

229
6.02

243
6.11

201213
142908
9
258
6.17

6.33

7.48

4.51

4.51

4.51

4.51

3.2.8.2 While reconciling the Subsidy paid for 2008-09 to Hut Consumers, the
TNEB has stated that the actual number of Hut Consumers as on 31-032009 was 1228561 as against 1197745 furnished in the ARR.
3.2.8.3 The details of Consumers and Consumption for the period from 2003-04
to 2006-07 are furnished below :

Sl.
No.
1.
2.
3.
4.

Table 14 Growth of consumers and consumption in Hut category

Details
2003-04
2004-05
2005-06
No. of Consumers
Consumption (in MU)
% increase in Consumption
% increase in number
Consumers

of

972564
173
4.22
(-)30.29

981960
180
4.05
0.97

1020509
182
1.11
3.93

2006-07
1048024
185
1.65
2.69

3.2.8.4 The average increase in the number of Consumers from 2004-05 to

2008-09 is 4.28%. The TNEB in their tariff petition have stated that a lot
of Consumers from Hut Category would shift to Domestic Category.
3.2.8.5 The Hut Category is unmetered. In the earlier Tariff Petition, the TNEB
had submitted that the consumption on account of Hut Service, has
been assessed assuming an average of eight hours per day of
consumption, for a 40 Watts electric lamp load.
3.2.8.6 In the absence of meter to measure the consumption by Hut Consumers,
the actual consumption furnished by TNEB cannot be checked for
correctness.
3.2.8.7 Now free Colour Television Sets have been distributed to Hut dwellers
and the Commission has ordered in T O 1-95 dated 03-11-2006 the load
be increased to 110W i.e, 40W for the bulb and 70W for the T.V.
71

3.2.8.8 The consumption by Hut Consumers is computed based on load and

hours of usage with the increase in number of consumers at 4.28% for
the control period (No. of Consumers at the middle of the year x 110 W x
8 Hr. x 365 days) as below:
Table 15 Projection of growth of consumers and consumption in Hut category
Details
No.
of
Consumers at
the end of the
year
No.
of
Consumers at
the middle of
the year
Consumption
(in MUs)

3.2.9 LT

2009-10
1251809

216

BULK

TNEB
2010-11 2011-12
1308313 1367368

229

243

SUPPLY

TO

2012-13
1429089

258

RAILWAY

2009-10
1251809

TNERC
2010-11 2011-12
1305386 1361257

2012-13
1419519

1224777

1278598

1333322

1390388

393

411

428

447

COLONIES,

PLANTATION

WORKER COLONIES, DEFENCE COLONIES Etc,

3.2.9.1 The TNEB has projected the following Sales for the Control period:
Table 16 Projection of sales by TNEB for LT bulk supply to railway colonies,
plantation worker colonies, defence colonies, etc.

Details
No. of Consumers
Consumption (in MUs)
% increase in No. of
Consumers
% increase in Consumption

2007-08
636
3
25.94
-

2008-09
578
12
(-)9.12

2009-10
667
3
15.40

2010-11
771
4
15.59

2011-12
890
5
15.43

2012-13
1027
6
15.39

300

(-)75

33.33

25

20.00

3.2.9.2 The tariff was introduced from 16-03-2003. The consumption recorded
was 2 MUs each in 2003-04, 2004-05 and 2005-06, 3 MUs in 2006-07,
2007-08 and Projections for 2009-10. There was 12 MUs only in 200809.
3.2.9.3 The TNEB has projected YOY increase of 1 MU from 2010-11 to 201112.
3.2.9.4 The Projections made by TNEB is accepted.
72

3.2.10 LT - PUBLIC LIGHTING AND WATER SUPPLY

3.2.10.1 The TNEB has made the following Sales Projection in the Tariff Petition :
Table 17 Projection of sales by TNEB for LT public lighting and water supply
Sl.
No.

Details

1.

No. of
Consumers
Sales in MUs
Increase
in
Consumers (%)
Increase in Sales
(%)

2.
3.
4.

2007-08
(Audited
Accounts)
416171

2008-09
(Prelim.
Accounts)
416928

973
20.50
(-)24.86

2009-10
Estimates

2010-11

2011-12

2012-13

475245

541718

617489

703858

1213
0.18

1043
13.98

1077
13.98

1111
13.98

1147
13.98

24.67

(-)14.01

3.26

3.16

3.24

3.2.10.2 It may be seen that 20.50% increase in number of Consumers has

resulted in a reduction in Sales by 24.86%, while 0.18% increase in
number of Consumers has resulted in 24.67% increase in Sales.
3.2.10.3 There cannot be such wide fluctuation in the supply to Street Light and
Water Supply Works. The data may not be correct.
3.2.10.4 The TNEB has projected YOY growth rate of 13.98% in the number of
Consumers and 3.2% in Sales.
3.2.10.5 The Consumers strength and Sales recorded in the previous years are
as below :
Table 18 Trend of consumers strength and sales for LT public lighting and water supply

Sl.

Details

2003-04

2004-05

2005-06

2006-07

No.
1.

No. of Consumers

303127

312209

321352

345362

2.

Sales in MUs

1080

1134

1179

1295

3.

Increase in Consumers (%)

2.25

2.99

2.93

7.47

4.

Increase in Sales (%)

4.04

3.97

9.84

73

3.2.10.6 The TNEB has estimated a Sale of 1043 MUs for 2009-10. The actual
Sales upto January 2010 was 1283 MUs. Thus, the Sales for 2009-10 is
re-fixed at 1540 MUs as against TNEBs estimate of 1043 MUs.
3.2.10.7 The average increase in number of Consumers from 2003-04 to 2005-06
is 2.72%. The number of Consumers is increased at 2.72% from 200708.
3.2.10.8 The Specific Consumption (Consumption per Consumer) in 2009-10 with
the revised number of consumers and consumption will be 3507 units.
3.2.10.9 The sales for the control period is fixed with reference to the specific
consumption and increase in number of consumers as detailed below:
Table 19 Projection of sales by TNERC for LT public lighting and water supply

Details

2009-10

No. of Consumers (2.72% over 2007-08)

Sales @ Specific Consumption of 3507

2010-11

2011-12

2012-13

439119

451063

463332

475934

1540

1581

1625

1669

units (in MUs)

3.2.11 LT - Recognized Educational Institutions etc.

3.2.11.1 The TNEB in the petition have made the following projection :
Table 20 Projection of sales by TNEB for LT recognized educational institutions

Sl.
No.
1.
2.
3.
4.
5.

Details
No. of Consumers
Sales in MU
% of increase in No.
of Consumers
% increase in Sales
Sales per Consumer
in units

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

108541
335
0.31

112027
595
3.21

111638
357
(-) 0.35

111250
471
(-) 0.35

110863
620
(-) 0.35

110478
817
(-) 0.35

6.69
3086.39

77.61
5311.22

(-) 40.0
3197.84

31.93
4233.71

31.63
5592.49

31.78
7395.14

74

3.2.11.2 The past trend in sales is as follows :

Table 21 Sales trend for LT recognized educational institutions
Sl.
No.
1.
2.
3.
4.
5.

Details

2003-04

No. of Consumers
Sales in MU
% of increase in Consumers
% increase in Sales
Specific Consumption

2004-05

138837
238
(-)0.39
(-)10.86
1714.24

141143
265
1.66
11.34
1877.53

2005-06

2006-07

109304
283
(-)22.56
6.79
2589.12

108210
314
(-)1
10.95
2901.76

3.2.11.3 The sales for 2008-09 as per preliminary accounts are abnormally high.
The sales in 2005-06, 2006-07 and 2007-08 appear reasonable. The
average increase for these periods is 8.14%.
3.2.11.4 The TNEB has projected a sale of 357 MUs for 2009-10. The actual
sales upto January 2010 was 293 MUs and hence the projection of 357
MUs for 2009-10 is approved.
3.2.11.5 The sales for the control period is fixed with 8% increase over the sales
for 2009-10 as below:
Table 22 Projection of sales by TNERC for LT recognized educational institutions
TNEB
Years

200910

Sales in MUs

357

201011

TNERC

201112

471

201213

620

200910

817

357

201011
386

2011
-12

201213

416

450

3.2.12 LT ACTUAL PLACES OF PUBLIC WORSHIP

3.2.12.1 The TNEB has made the following projection in Form-2 of ARR.
Table 23 Projection of sales by TNEB for LT actual places of public worship
Sl.
No.
1.
2.
3.

4.

Details
No. of Consumers
Sales in MU
% of increase in
number
of
consumers
% of increase in
Sales

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

104198
68
8.56

119846
115
15.02

127037
74
6

134659
78
6

142739
83
6

151303
88
6

13.33

69.12

(-)35.65

5.4

6.4

75

3.2.12.2 The TNEB has projected the Consumers and Sales at YOY rate of 6%
for the Control Period.
3.2.12.3 The Sales from 2003-04 to 2006-07 as per the accounts of the TNEB are
as below :
Table 24 Sales and consumer growth trend for LT actual places of public worship
Sl.

Details

2003-04

2004-05

2005-06

2006-07

No.
1.

No. of Consumers

2.

Sales in MU

3.

of

increase

in

39246

46256

46573

95979

44

46

49

60

63.05

17.86

0.69

106.08

158.82

4.54

6.52

22.45

Consumers
4.

% of increase in Sales

3.2.12.4 The actual sales upto January 2010 was 76.68 MUs as against the
projected sales of 74 MUs for the entire year. Hence, the sales for 200910 are fixed at 93 MUs based on the trend of sales.
3.2.12.5 The sales for the control period is fixed with 6% increase every year over
93 MUs fixed for 2009-10 as below:
Table 25 Sales projection for LT actual places of public worship
TNEB

Sales (in

200910
74

201011
78

TNERC

201112
83

201213
88

200910
93

201011
98

201112
104

201213
110

MU)

3.2.13 LT COTTAGE & MICRO INDUSTRIES

3.2.13.1 The TNEB has made the following Projection in the petition and in the
ARR :
Table 26 Sales projection by TNEB for LT Cottage and Micro Industries
Sl.
No.
1.
2.
3.
4.
5.

Details
No. of Consumers
Sales in MU
%
of
increase
in
Consumers
% of increase in Sales in
MU
Specific Consumption

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

41399
264
7.95

45934
610
10.95

48576
284
5.75

51370
416
5.75

54325
610
5.75

57450
895
5.75

1.54

131.06

(-)53.44

46.48

46.63

46.72

6376.965

13279.923

5846.508

8098.112

11228.716

15578.764

76

3.2.13.2 The TNEB has projected the Sales for the Control Period at YOY rate of
46.6%.
3.2.13.3 The past trend in Sales is detailed below :
Table 27 Sales trend for LT Cottage and Micro Industries
Sl.
No.
1.
2.
3.
4.
5.

Details
No. of Consumers
Sales in MU
% of increase in Consumers
% of increase in Sales in MU
Specific Consumption

2003-04

2004-05

2005-06

2006-07

41779
215
30.10
14.36
5146.126

43940
236
5.17
9.77
5370.960

37034
242
(-)15.72
2.54
6534.536

38350
260
3.55
7.44
6779.661

3.2.13.4 The actual Sales for the year 2009-10 upto January 2010 was 93 MUs
and based on the month-wise Sales, the Sales for the year 2009-10 is
revised as 111 MUs.
3.2.13.5 The CAGR for the period from 2003-04 to 2007-08 (excluding 2008-09)
is 5%.
3.2.13.6 The sales for the control period is fixed with an increase of 5% (CAGR)
each year over the revised sales of 111 MUs for 2009-10 as below:
Table 28 Sales projection for LT Cottage and Micro Industries

TNEB

Sales
MU)

(in

200910
284

201011
416

TNERC

201112
610

201213
895

200910
111

201011
117

201112
122

201213
128

3.2.14 LT POWERLOOMS
3.2.14.1 The TNEB has made the following projections in the ARR :
Table 29 Sales projection by TNEB for LT Power looms

Sl.
Details
No.
1. No.
of
Consumers
2. Sales in MUs
3. % increase
in

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

102927

103445

115686

129377

144687

161809

672
4.23

799
0.50

720
11.83

749
11.83

779
11.83

811
11.83

77

4.
5.

Consumers
% increase
4.48
18.89
(-)9.89
4
4
4
in Sales
Specific
6528.899 7723.911 6223.744 5789.282 5384.036 5012.082
Consumption
(in units)

3.2.14.2 The TNEB has projected the number of consumers at the YOY rate of
11.83% and the sales at YOY rate of 4%.
3.2.14.3 The TNEB has projected a sale of 720 MUs for the year 2009-10.
However, the actual sales upto January 2010 was 679.324 MUs. Based
on the pattern of sales, the projection of 720 MUs made by TNEB is
revised as 822 MUs for 2009-10.
3.2.14.4 The projection for the control period is fixed with 4% increase every year
over the revised sales for 2009-10 as below:
Table 30 Sales projection by TNERC for LT Power looms

Sl.
No.
1.

Details
At growth rate of 4% with
base value as 822 in 200910

2009-10
(In MUs)
822

2010-11
(In MUs)
855

2011-12
(In MUs)
889

2012-13
(In MUs)
924

3.2.15 LT INDUSTRIES
3.2.15.1 The TNEB has projected sales to LT Industries as below :
Table 31 Sales projection by TNEB for LT industries

Year

2007-08

No. of Consumers
Sales in MU
%

increase

2008-09

2009-10

2010-11

2011-12

2012-13

324014

332364

339524

346837

354309

361941

4585

3800

4924

4912

4902

4893

2.94

(-) 17.12

29.58

(-)0.24

(-)0.20

(-)0.18

decrease in Sales

3.2.15.2 The TNEB has not indicated the methodology adopted to forecast the
energy consumption by LT Industrial Consumers (under LT Tariff III B).

78

They have stated that the demand and energy forecast for 2009-10 have
been arrived at based on proportionate consumption made in 2007-08 in
view of R & C 2008-09.
3.2.15.3 The energy consumption for 2009-10 has been projected at 4924 MUs
with an increase of 29.58% over the consumption in 2008-09 (and an
increase of 7.39% over the consumption in 2007-08).
3.2.15.4 The available actuals upto January 2010 was 3287 MUs.
3.2.15.5 Based on the monthly consumption pattern, the estimated consumption
for 2009-10 is revised as 3942 MUs as against 4924 MUs projected by
the TNEB. This is 3.74% more than the consumption in 2008-09
3.2.15.6 The past trend indicates that the growth was staggering as below :
Table 32 Sales trend for LT industries

Details

2003-04

2004-05

2005-06

2006-07

Sales

3490

3810

3921

4454

% of increase

3.25

9.16

2.91

13.59

3.2.15.7 The sales for the control period is projected with the growth rate of
3.74% over the revised sales of 3942 MUs for the year 2009-10 as
below:
Table 33 Sales projection by TNERC for LT industries

TNEB
Year

Increase

3.74%

(in

TNERC

2009-

2010-

2011-

2012-

2009-

2010-

2011-

2012-

10

11

12

13

10

11

12

13

4924

4912

4902

4893

3942

4089

4242

MU)

3.2.16 LT AGRICULTURAL SERVICES

3.2.16.1 The TNEB has made the following projections for the control period:

79

4401

Table 34 Sales projection by TNEB for LT agricultural services

Year
No. of consumers
Consumption in MU
% increase in No. of Consumers
% increase in Consumption

2010-11
1976246
12870
2.4%
7.99

2011-12
2023646
14116
2.4%
9.68

2012-13
2072183
15245
2.4%
8%

3.2.16.2 The TNEB has not carried out any sample study to assess the
consumption in unmetered services. The TNEB has stated that there is
an estimated increase of 40,000 agricultural connections per year. The
increases in consumption / consumers proposed by TNEB are on the
higher side.

3.2.16.3 The consumption pattern in the previous years was as below:

Table 35 Consumption patterns of LT agricultural services
As per Audited Accounts
Year
No.
Consumers
YOY increase
No.
Consumers
Consumption
MU
Average
Consumption
per service
Unit
% increase
Consumption
% increase
No.
Consumers

2003-04
1702541

2004-05
1736946

2005-06
1768052

2006-07
1824932

2007-08
1853764

Prel.
A/cs
2008-09
1884750

in
of

26428

34405

31106

56880

28832

30986

45206

in

9582

9757

9797

10601

11107

11499

11918

5628

5617

5541

5809

5992

6101

6175

in

6.22

1.83

0.41

8.21

4.77

3.53

3.64

in
of

1.58

2.02

1.79

3.22

1.58

1.67

2.40

of

Estimate
2009-10
1929956

3.2.16.4 The TNEBs claim that there is an estimated increase of 40,000

agricultural consumers every year is not correct. There are shortfalls /
excess in achieving the target.
3.2.16.5 The quantum of sales furnished in earlier years is not in proportion to the
number of consumers. Increase of 31,106 service connections in 2005-

80

06 has resulted in increased consumption of 40 MUs, while increase of

28,832 service connections in 2007-08 has

resulted in increased

consumption of 506 MUs over the previous year.

3.2.16.6 The TNEB probably predetermines the percentage of loss and then
estimates the agricultural consumption so as to maintain the loss level
without

adopting

any

specific

method

to

compute

agricultural

consumption.
3.2.16.7 In the 17th Electric Power Survey (EPS), the CEA has

adopted the

following formula to forecast the electrical consumption of pumpsets/tube

wells.
Y=NxSxH
Where,
Y = Electrical consumption in KWh
N = Number of pumpsets at the middle of the year
S = Average capacity of pumpset in KW at the middle of the year
H = Average electricity consumption per year per kilowatt of connected
electric load (KWh/KW)
3.2.16.8 The consumption by agricultural services is computed for the control
period by adopting CEAs formula with the following assumption:
(i)

No. of consumers (service connections) is increased @ 40,000

year after year.

(ii)

The number of consumers as on 31-03-2009 is taken as 1884750

and the number of consumers for the subsequent periods may be
arrived at with the addition of 40,000 consumers every year.

(iii) Capacity of the pump sets is adopted on HP basis against the kW

basis.
(iv) The average consumption per HP per year is taken as 1051 units
based on the sample study report submitted for earlier tariff
revision.
(v)

Connected load may be increased @ 5.47 HP/service.

81

3.2.16.9 The consumption in agricultural services during the control period is

arrived at as below:
Table 36 Sales projection by TNEB for LT agricultural services
Sl.
No.
1.

2.
3.
4.
5.

6.
7.

Details

2009-10

No. of service connection

(consumers at the end of
the year) with addition of
40,000 every year
No. of service connection
at the middle of the year
Connected load in HP at
the end of the year
Connected load in HP at
the middle of the year
Average
capacity
of
pumpset in HP at the
middle of the year ( 4 / 2 )
Average consumption in
KWh/HP/Annum
Consumption in MU (2 x 5
x 6)

2010-11

2011-12

2012-13

1929204

1969204

2009204

2049204

1909204

1949204

1989204

2029204

10552746

10771545

10990345

11209145

10443346

10662145

10880945

11099745

5.47

5.47

5.47

5.47

1051

1051

1051

1051

10976

11206

11436

11666

3.2.16.10 The projection by TNEB is compared with the above projection as

below:
Table 37 Comparison of sales projections by TNEB LT agricultural services with TNERC
projection

(In MUs)
TNEB

Sales

TNERC

2009-10

2010-11

2011-12

2012-13

2009-10

2010-11

2011-12

2012-13

11918

12870

14116

15245

10976

11206

11436

11666

3.2.17 LT Commercial establishments and consumers not covered in

other LT categories
3.2.17.1 The TNEB has projected the following sales for the control period :
Table 38 Sales projections by TNEB for LT commercial

Details
No. of Consumers
Consumption in MU

2010-11

2011-12

2012-13

2755838

2895387

3041893

4329

4695

5092

82

% increase in no. of Consumers

5.06

5.06

5.06

% increase in Consumption

8.44

8.45

8.46

1570.847

1621.544

1673.897

Specific Consumption (in units)

3.2.17.2 The past trend in the growth of service connection and consumption as
recorded in Boards accounts are detailed below :

Details
No.
of
Consumers
Consumption
in MU
% increase in
no.
of
Consumers
% increase in
consumption
Specific
Consumption
(in units)

Table 39 Sales trend for LT commercial

Actuals
2003-04
2004-05
2005-06
2006-07
2007-08
1865523
1992868
2122967
2226580
2343407

Estimates
2008-09
2009-10
2496594
2623015

2583

2814

2897

3467

3720

3660

3992

5.29

6.82

6.52

4.88

5.24

6.54

5.06

5.60

8.94

2.95

19.68

7.30

(-)1.61

9.07

1384.60

1412.04

1364.60

1557.10

1587.43

1466.00

1521.91

3.2.17.3 The TNEB has projected the sales for the control period at 8.46%, which
is the average of growth rates for the period from 2006-07 to 2008-09.
There was an abnormal growth i.e. 19.68% in 2006-07 followed by
7.30% and (-) 1.61% in subsequent years. In view of the wide variation
the growth rate of 8.46% is not considered.
3.2.17.4 The average growth rate for the period from 2003-04 to 2008-09 is
7.14%.
3.2.17.5 The CAGR for the period from 2003-04 to 2008-09 is 7%.
3.2.17.6 The available actual consumption upto January 2010 was 3507.430 MUs
against the estimated consumption of 3992 MUs for the entire year.
Hence, the estimated consumption of 3992 MUs for 2009-10 is revised
as 4257 MUs based on the trend of sales.
3.2.17.7 The sales projection for the control period is fixed with 7% (CAGR)
increase over the sales of 4257 MUs for 2009-10 as below:

83

Table 40 Sales projections by TNERC for LT commercial

CAGR
increase

7%

200910
3992

TNEB
2010201111
12
4329
4695

201213
5092

200910
4257

TNERC
2010201111
12
4555
4874

201213
5215

3.2.18 LT Tariff VI (TEMPORARY SUPPLY)

3.2.18.1 The TNEB has made the following projection :
Table 41 Sales projections by TNEB for LT temporary supply
Sl.
No.
1.
2.
3.

Details

2007-08

No. of Consumers
Sales in MUs
% of increase /
decrease in Sales
(in MUs)
% of increase in
No. of Consumers

4.

2008-09

2009-10

2010-11

2011-12

2012-13

11601
11
0

11299
39
254

23062
11
(-)71.79

47073
19
72.73

96080
33
73.68

196109
56
69.69

205.13

(-)2.60

104.11

104.11

104.11

104.11

3.2.18.2 The TNEB has projected a growth of 72.73% in Sales and 104.11% in
the number of Consumers.
3.2.18.3 The actuals for the earlier years are as below :
Table 42 Sales trend for LT temporary supply
Sl.No
1
2
3

Details
No.of consumers
Sales in MUs
% of increase
/
decrease in sales
(in MU)
% of increase in
number
of
consumers

2003-04
3467
2
0

2004-05
3355
2
0

2005-06
3688
19
850

2006-07
3802
11
(-)42.10

5.25

(-)3.23

9.92

3.09

3.2.18.4 No definite trend in the growth of Sales and Consumers could be

forecast in case of Temporary Supply.

84

3.2.18.5 The actuals upto January 2010 was 11.50 MUs as against 11 MUs
projected by the TNEB.
3.2.18.6 The Projection for the Control Period proposed by the TNEB is accepted.

3.3

Transmission and Distribution Loss

3.3.1

TNEB has projected the T&D loss @ 18% for all the 3 years of control
period.

3.3.2

The TNEB in para 7 of the Tariff Petition have submitted the following :
A T&D loss level of 18% has been arrived at on the basis of energy
input into system and total output from the system for 2007-08 to 201213.
T&D loss in the state are at present among the lowest in the country,
with latest TNERC Tariff Order assessing the losses at 18%. Most of the
T&D losses are technical in nature. Though it must be mentioned that a
detailed study to accurately determine T&D losses is yet to be
undertaken and results of such a study may provide a better basis for
formulating further T&D loss reduction strategies.

T&D losses are

assessed as the difference between the energy input and the estimated
sales.
3.3.3

With regard to the contention of TNEB that the T&D loss of 18% was
assessed by the Commission in the earlier Tariff Order, the Commission
observes the following:

(i)

The TNEB had been maintaining the T&D loss at a level of 16.25% upto
2002 and also claimed T&D loss at the same level (16.25%) in the
petition for tariff determination filed in September 2002. In the petition,
the TNEB had furnished the following information :
(a) The Board had nearly 17 lakh agricultural connection, which
constitute 83 lakh HP of connected load.
(b) For assessing the agricultural consumption for these consumers,
the energy meters are provided to 3% of the service connections in

85

each of the distribution circles from where the consumption is

recorded on a sample basis.
(c) The average annual consumption / HP as per the sample data for
assessment of agricultural consumption was 1051 units.
(ii)

As the consumption projected for the agricultural consumers in the tariff

petition did not match the consumption arrived at based on sample data
and connected load of the Agricultural services, the Commission
corrected the agricultural consumption projected by the TNEB in line with
the sample data and included the balance energy to the loss level.

(iii) The Commission has corrected the loss level furnished by the TNEB by
including the balance energy consequent to the correction made to
Agricultural consumption. The Commission had not actually made any
assessment.
(iv) The TNEB cannot maintain the loss at that level continuously without
subsequently undertaking sample study on the 3% agricultural service
connections said to have been metered.
3.3.4

Regulation 73 (Transmission and Distribution Loss) of TNERC Tariff

Regulation stipulates the following :

(i) The Distribution Licensee shall endeavour to have proper metering

arrangements for accurate measurement of transmission loss.
(ii) Appropriate sample study with the approval of the Commission shall be
conducted to estimate the consumption in unmetered services so that
distribution losses are estimated fairly accurate.
(iii) The licensee shall compute and furnish loss levels at every supply voltage
level.
3.3.5

The TNEB had neither furnished the Master Metering Plan nor made any
attempt to meter the unmetered services. They sought for extension of
time for metering the existing as well as the new service connections.

(i)

The Commission has been granting extension of time for installation of

meters in unmetered services and the last extension was granted for 3
years from 01-10-2009 at the request of the Government/TNEB.

86

(ii)

3.4

TNEB has undertaken to meter the new services from 01-01-2010.

Commissions Rulings and Directives on T&D Loss / Energy Audit

in earlier Tariff Order and TNEBs response :

3.4.1

In para 2.10.3 of the Tariff Order dated 15-03-2003, the Commission

issued the following ruling on T&D losses :
The Commission is of the opinion that ultimately the TNEB should be
able to assess the transmission and distribution losses in each of the
voltage systems of the grid. As a first step, the Commission directs the
TNEB to assess the T&D losses in the following three voltage system.
(i) 230, 110, 66 and 33 KV Voltage System: At all input source points,
meters are already installed. Meters should be installed at the output
points at each sub-station. Energy balance can be assessed by taking
the monthly readings at all these points combined, which will also give
the line losses assessed at 230, 110, 66 and 33 KV Voltage System.
(ii) 22 KV and 11 KV System: The TNEB has stated that it has already
installed meters at the Sub-stations and on 22 KV and 11 KV feeders.
Meters are to be installed at the secondary end of distribution
transformers. With the reading captured at sub-station end, distribution
transformer end readings and HT consumer end readings, if any, the
energy balance can be assessed and line loss arrived at for 22 / 11 KV
system. A representative sample study may be carried out and based
on sample study results; the total loss can be assessed.
(iii) Low Tension System: The Commission has

taken note of the

consultatory work in progress for assessment of the consumption by

unmetered services. As soon as this is over, TNEB should be in a better
position to assess the line loss in the LT system.
3.4.2

The Commission in its Tariff Order dated 15-03-2003 has also issued
the following directives :
7.16 (iii) Energy Audit:

87

The Commission is of the opinion that the TNEB should be able to

assess the transmission and distribution losses in each of the voltage
system of the Grid. Towards this, the TNEB is directed to improve the
level of metering and conduct more energy audits at the 11 KV feeder
level. The Commission directs the TNEB to undertake energy audits at
the HT/LT levels and its own generating stations and submit a quarterly
report to the Commission on the progress achieved in the energy audit
programme, the results of the energy audit and the action taken report
highlighting the action taken by the TNEB to rectify the situation.
Towards the assessment of LT line losses, the Commission has taken
note of the two consultancy work in progress under the World Bank
assisted Water Resources Consolidation Project. The results should be
submitted to the Commission and the follow-up should be completed
well before the next tariff petition.
3.4.3

TNEB has reported to have taken the following action :

(i)

Static Meters have been installed in all output points in each sub-station.

(ii)

Monthly energy balance assessment is being carried out from 230 KV

level to 11 KV bus and a quarterly return is being submitted to the
Commission.

3.4.4

It is seen from the quarterly report that transmission loss from 230 KV
level to 11/22 KV bus is arrived at (energy balance) as difference
between the energy injected from generator / interstate and the energy
fed to EHT / HT consumers & total consumption at SS end of 11/22 KV.
The loss at HT and LT system is arrived at by deducting the
transmission loss from the estimated T&D loss of 18%.

3.4.5

The TNEB has reported to have taken the following action towards
reduction of loss at LT system (Distribution loss).

(i)

Out of the total 186638 Nos. distribution transformers (DTs) available in

TNEB, 93101 DTs have been metered. Steps are being taken to carry
out energy accounting in the feeders where all DTs have been metered.

88

(ii)

TNEB is continuously carrying out the following improvement works to

reduce the losses.
(a) Improving HT: LT ratio by erecting more High Tension lines and
erecting new Distribution transformers.
(b) Establishment of new sub-stations.
(c) Strengthening of HT line conductors.
(d) Installations of HT shunt capacitors at sub-station end.
(e) Installation of LT fixed capacitors at LT side of distribution
Transformers.
(f) Erection of link lines
(g) Re-routing of feeders.

3.4.6

The following points are observed on the action taken reports furnished
in the quarterly returns being received :

(i)

The TNEB has reported that the percentage of line loss gets reduced
after improvement works as revealed by the energy accounting studies
made prior to improvement works and after improvement works.

(ii)

The TNEB continue to furnish the same T&D loss level of 18%.

(iii)

The TNEB contend that, with the increase in load and HT/LT network
expansion, line loss also is increasing and that the effect of improvement
works result only in containing the T&D losses without further increase.

3.4.7

The contention of TNEB is untenable. The TNEB shall arrange to take

appropriate action to assess the unmetered consumption to arrive at the
loss level correctly. The detail furnished in this regard by TNEB is only
qualitative in nature. There is no substitute for actual measurement in
computing the losses. A time bound programme for moving towards
proper metering is to be furnished by TNEB and implemented thereafter.

3.5

Assessment of Unmetered Consumption :

3.5.1

In the Action Plan on various activities received on 05-03-2003, the

TNEB had reported that as a part of World Bank assisted T.N. Water

89

Resources Consolidation Project, the Board has

awarded a

Consultancy to Dr. S.K. Raheja, Retired Director of ICAR for

recommending analytical procedures and sample size assessment of
energy consumption by unmetered agricultural and hut connection.
3.5.2

The TNEB in the petition have now reported the following status:
The Consultant has

identified providing meters in 6600 Nos.

Agricultural services and 4620 Nos. hut services selected at random.

Installation of meters has been completed;

Meter readings taken from 01-12-2006 to 31-11-2007;

While analyzing the data for estimation of energy consumption,

run time error occurred in the software;

The error has been referred to Dr. S.K. Raheja, Consultant and
reply is awaited;

3.5.3

The contention of TNEB is unacceptable. Two years period is too long

get error rectified or to use alternate method to arrive at the loss. Having
measured 50% of their DTs, the reading of the DTs should have been
used to arrive more accurate consumption of agricultural and HUT
services.

3.6

Commissions Rulings on T&D Loss

3.6.1

As per Regulation 73 (5) of TNERC (Terms & Conditions for

determination of Tariff) Regulation 2005, the Commission shall fix target
for reduction of losses in next three years.

3.6.2

As per para 8.2(2) of the Tariff Policy, AT & C loss reduction should be
incentivized by linking returns in a MYT framework to an achievable
trajectory.

3.6.3

As per Regulation 25 of the Terms and Conditions for determination of

Tariff for Transmission, Distribution of Electricity under MYT framework
the Commission shall fix benchmarks for reduction of losses and
licensee shall achieve the target fixed for each year of the control period.

90

3.6.4

The TNEB has furnished the following trajectory of Aggregate

Transmission & Distribution Loss to 17th Electric Power Survey.
Table 43 AT&C loss trajectory projected by TNEB

Year

2004-05

Loss level 18
(in %)

200506
18

200607
18

200708
17.5

200809
17

200910
16.5

201011
16

201112
15.5

3.6.5

The 17th EPS has adopted the above trajectory of reduction of loss.

3.6.6

The Commission has fixed the following year-wise target of AT&C loss
to be achieved by TNEB upto 2012 with a reduction of 0.4% every year
from 2008-09 in order dated 06-11-2008.
Table 44 AT&C loss trajectory fixed by TNERC

Year
2008-09
Loss level 19.3
(in %)
3.6.7

2009-10
18.9

2010-11
18.5

2011-12
18.1

The AT&C loss of 19.3% fixed by the Commission includes loss on

account of theft and deficiency in collection.

3.6.8

The TNEB has submitted that they have collection efficiency of 99.81%
with AT&C loss of 18.31% for 2008-09.

3.6.9

They have also submitted that they have efficient enforcement

mechanism to take preventive action to curb energy theft.

3.6.10 The Commission directs that the T & D loss be reduced by 0.40% every
year from 2010-11. The trajectory for reduction of loss is fixed as below:
Table 45 T&D loss trajectory fixed by TNERC

Year
2009-10
Loss level 18
(in %)

2010-11
17.6

2011-12
17.2

2012-13
16.8

3.6.11 In case the licensee achieves a loss at a level less than the target, he
may retain 50% of the gain out of the loss reduction and the balance
50% will be passed to the consumers as per Regulation 3 (ix) of MYT
Regulations. The licensee may consider introducing incentives for

91

employees for loss reduction. Such schemes are in operation in West

Bengal and in other States.

3.7

Net Energy Requirement

3.7.1

The demand and energy forecast and net energy requirement

determined by the Commission duly taking into account the T & D loss is
compared with the projection of TNEB as below:

Table 46 Demand and energy forecast and net energy requirement determined by the
TNERC
(in Mus)
Sl.
No.

I.

3
4
5
6
7

II
1
2
3

Consumer
Category

HIGH
TENSION
Industries
incl. Rly.
Traction
Recognized
Educational
Institutions
etc.
Places of
Public
Worship
Commercial
Lift Irrigation
Supply to
Puducherry
Sale to Other
States
Total HT
LOW
TENSION
Domestic
Huts
Bulk Supply
Public
Lighting &
Water Supply
Recog.
Educational
Institutions

Tariff

TNEB

TNERC

2009-10

201011

201112

201213

200910

201011

201112

201213

16562

17942

19438

21058

14820

16055

17392

18841

II A

936

998

1064

1135

970

1034

1102

1175

II B
III
IV

4
1514
11

4
1671
12

4
1844
14

4
2034
15

4
1600
9

4
1744
9

4
1901
9

4
2072
9

420

445

471

499

19447

21072

22835

455
25200

17403

18846

20408

22101

IA
IB
IC

13709
216
3

14524
229
4

15578
243
5

16309
258
6

15535
393
3

16282
411
4

17065
428
5

17886
447
6

II A

1043

1077

1111

1147

1540

1581

1625

1669

II B

357

471

620

817

357

386

416

450

IA

92

7
8
9
10
11
12

etc
Places of
Public
Worship
Cottage &
Micro
Enterprises

74

78

83

88

93

98

104

110

284

416

610

895

111

117

122

128

720
4924
11918
3992

749
4912
12870
4329

779
4902
14116
4695

811
4893
15245
5092

822
3942
10976
4257

855
4089
11206
4555

889
4242
11436
4874

924
4401
11666
5215

11
37251

19
39678

33
42775

56
45617

11
38040

19
39603

33
41239

56
42958

56698

60750

65610

70817

55443

58449

61647

65059

T & D Loss
%

18

18

18

18

18

17.6

17.2

16.8

T & D Loss
in MU

12446

13335

14402

15545

12170

12484

12806

13137

Net Input
Energy
Requirement

69144

74085

80012

86362

67613

70933

74453

78196

Power loom
Industries
Agriculture
Commercial
Temporary
Supply
Total LT
Grand Total

II C
III A
(1)
III A
(2)
III B
IV
V
VI

93

CHAPTER 4
ENERGY AVAILABILITY
The TNEB meets the energy requirement from the energy available from own
generation station and by purchase from central generating stations, IPPs and
other sources. The availability of power from various sources is as below:

4.1

OWN GENERATING STATION

4.1.1 The TNEB own the following generating stations with installed capacity
noted against each :
Table 47 Installed capacity of the generating stations owned by TNEB

Sl.No
I
1
2
3
4
II
1
2
3
4
5
III
IV

Station
Coal
Ennore (ETPS)
Tuticorin (TTPS)
Mettur (MTPS)
North Chennai (NCTPS)
Total coal based stations
Gas
Tirumakottai (Kovilkalappal)
Kuttalam
Valuthur unit I
Valuthur Unit II
Basin bridge
Total Gas based stations
Hydro (36 stations)
Wind Mills
Total

Capacity (in MW)

450
1050
840
630
2970
107.88
101
95
92
120
515.88
2186.65
17.55
5690.08

4.1.2 The energy available from the Boards own thermal generating stations is
fixed with reference to the norms of operation specified in the TNERC
Tariff Regulations 2005 as below:
4.1.3 Plant Load Factor (PLF):
Under Regulation 37, the following norms of operations have been
specified for Thermal Generating Stations.

94

(i) Target availability for recovery of full capacity (fixed) charges

(a) All Thermal Generating Stations in Tamil Nadu except
Ennore Thermal Power Generating Station

80%

(b) Ennore Thermal Power Generating Station

(Till Renovation and Modernization works in all units
are completed)
(c) In respect of Generating Stations of IPPs

50%

As per PPA

(d) New Thermal Stations

80%

(ii) Target Plant Load Factor for incentive

(a) All the Thermal Power Generating Stations except
the existing Stations of IPPs covered under PPA

80%

(b) Power Generating Stations of IPPs covered under

Existing PPA
As per PPA
4.1.4 The average PLF achieved by the thermal station in the five years
previous to 2008-09, PLF during 2008-09 and the PLF in the 1st half year
of the 2009-10 are tabulated below:
Table 48 PLF trend in TNEB owned thermal stations

(in %)
Sl.
No.

Stations

200304

200405

200506

200607

200708

1
2
3
4
5

ETPS
TTPS
MTPS
NCTPS
Kovilkalappal
(Tirumakottai)
Valuthur
Kuttalam
Basin Bridge

32
87.63
91.28
78.57
76.59

31
88.90
90.85
71.00
80.78

15.23
83.42
88.59
72.50
60.62

36.20
87.90
92.59
88.87
74.47

79.98
8.38

67.03
73.18
4.13

83.80
74.68
3.83

87.42
68.98
8.45

6
7
8

Actuals
2008-09

Upto
30-09-09

51.56
86.70
90.94
84.38
71.60

Average
for five
years
33.20
86.91
90.85
79.06
72.81

49.17
85.35
87.78
86.52
75.48

38.44
80.15
91.75
86.79
57.72

72.00
31.82
3.95

78.05
62.17
5.75

85.00
82.16
28.02

83.00
77.63
2.67

4.1.5 The above performances are compared with the TNEBs projections for
the control periods as below:

95

Table 49 Projection of PLF by TNEB for TNEB owned thermal stations

(in %)
Sl.
No.

Stations

1
2
3
4
5
6
7
8
9

ETPS
TTPS
MTPS
NCTPS
Kovilkalappal
Valuthur Unit I
Kuttalam
Basin Bridge
Valuthur Unit II

Average
for five
years
33.20
86.91
90.85
79.06
72.81
78.05
62.17
5.75

Actuals
2008-09

Upto
30-09-09

49.17
85.35
87.78
86.52
75.48
85.00
82.16
28.02

38.44
80.15
91.75
86.79
57.72
83.00
77.63
2.67

2010-11

TNEBs Projection
2011-12
2012-13

50.81
90.02
89.01
82.45
68.71
71.62
77.08
23.59
78.37

50.81
90.02
89.01
82.45
68.71
71.62
77.08
23.61
78.37

50.81
90.02
89.01
82.45
68.71
71.62
77.08
23.61
78.37

4.1.6 The TNEB has stated that the less generation in TTPS during the 1st half
of 2009-10 was due to forced shut down of unit IV from 30-04-2009 to 0406-2009 for carrying out maintenance work due to generator stator earth
fault along with annual overhauling works. However, the performance was
above the targeted availability i.e.80.15%. The lesser generation in ETPS
was stated to be due to condenser tube problem in unit II and annual
overhauling programme in unit I, IV and V.
4.1.7 The ETPS has undergone renovation and modernization. This will call for
additional capitalization. Regulation 19 of Tariff Regulations 2005 deals
with this subject. Note No.2 to this Regulation stipulates that any
expenditure incurred on replacement of old asset shall be considered after
writing off the gross value of the original asset from the original capital
cost. Further Note 4 to the same Regulation clarifies that any expenditure
admitted by the Commission for determination of tariff on renovation,
modernization and life extension shall be certified on normative debt
equity ration as is specified in Regulation 21 after writing off the original
amount of the replaced asset from the original project cost. From the
above stipulations in the Regulations, it can be seen that it is necessary to
determine the tariff of ETPS after renovation and modernization by
following the Regulations. In view of this it was not possible for the
Commission to do this exercise in the retail tariff petition. The TNEB is

96

directed to file a separate petition for ETPS in accordance with the

Regulation within 2 months of issue of this order and the tariff of ETPS will
be decided on that basis. The details of ETPS considered in the ARR
petition shall accordingly be on provisional basis which will be subject to
adjusments on fixing of tariff of ETPS. The adjustmeny could be positive
or negative and this adjustment will be carried out in the true up petition
for 2010-11 along with carring cost.
4.1.8 The TNEB has also stated that the lesser PLF in gas based thermal
station during the first half of the current year was due to non-supply of
agreed quantity of gas by M/s.GAIL.
4.1.9 TNEB in their petition have indicated that the availability of gas from GAIL
is now reduced and is about 70% of the requirement. Accordingly various
gas based power stations of TNEB are able to operate only at lower PLF.
The Commission suggest that the TNEB may take up the issue with the
Government of India for allocation of additional gas so that the assets
which are created already are put to optimum use. The TNEB shall plan
to maximize the output of Gas based Stations and at the same time the
heat rate is also maintained at a optimal level. Another option could be to
consider alternate fuel which may require modification to the gas turbine
as well as addition of fuel system for the alternate fuel including storage
tank, fuel forwarding system etc., which will involve construction period
and additional capital cost.
4.1.10 TNEB may also take up this matter with GAIL for use of allocated gas in
various power stations and in case the TNEB cannot utilise the entire gas
allocated to them, the issue of using this surplus gas by other generators
in the State may also be considered.

This needs to be done in

consultation with GAIL. Yet another issue involved in use of gas is take
or pay contract for gas supply. TNEB may ensure that at all times the
allocated gas is fully utilised so that take or pay conditions may not be
attracted.

97

4.1.11 The Commission considers the PLF for thermal stations as tabulated
below for the purpose of energy availability:
Table 50 Projection of PLF by TNERC for TNEB owned thermal stations

(in %)
Sl.
No.
1
2
3
4
5
6
7
8
9

2010-11
50.81
90.02
89.01
82.45
68.71

TNEB
2011-12
50.81
90.02
89.01
82.45
68.71

2012-13
50.81
90.02
89.01
82.45
68.71

2010-11
50.81
90.02
91.75
86.79
68.71

TNERC
2011-12
50.81
90.02
91.75
86.79
68.71

2012-13
50.81
90.02
91.75
86.79
68.71

71.62
77.08
23.59
78.37

71.62
77.08
23.61
78.37

71.62
77.08
23.61
78.37

71.62
77.08
5.75
78.37

71.62
77.08
5.75
78.37

71.62
77.08
5.75
78.37

Station
ETPS
TTPS
MTPS
NCTPS
Kovilkalappal
(Tirumakottai)
Valuthur Unit I
Kuttalam
Basin Bridge
Valuthur Unit
II

4.1.12 The coal based thermal stations except ETPS are entitled for incentive for
generation in excess of target availability in accordance with Regulations
37 (ii) and 44 of Tariff Regulations, 2005.
4.1.13 The TNEB shall study the causes for the low performance of ETPs inspite
of R&M works and take appropriate action to improve the performance.

4.2

Auxiliary Consumption

4.2.1 The normative auxiliary energy consumption specified in the Tariff

Regulations, 2005 are as below:
Coal based:
Table 51 Normative auxiliary consumption for coal based stations

Sl.
No.
1
2

Particulars
200 MW series
500 MW series
Steam driven boiler feed pumps
Electrically driven boiler feed
pumps

With
Cooling Without
tower
cooling tower
9.00%
8.50%
7.50%
9.00%

7.00%
8.50%

(7) Gas & Naphtha based

- Combined cycle

- 3.00%

98

- Open cycle

- 1.00%

4.2.2 The TNEB did not furnish the station wise projection of auxiliary
consumption in the petition.
4.2.3 The average of auxiliary consumption for five years earlier to previous
year, auxiliary consumption in the previous year (2008-09) and the first
half of the current year (2009-10) are tabulated as per TNEBs Annual
Statement of Accounts are tabulated submission below:
Table 52 Trend in auxiliary consumption for TNEB owned thermal generating
stations

(in %)
Sl.
No
.
1
2
3
4
5
6
7
8
9

Station

ETPS
TTPS
NCTPS
MTPS
Tirumakott
ai
Valuthur
GTS-I
Kuttalam
GTPS
Basin
Bridge
Valuthur
GTS-II

200304
13.92
7.80
9.14
7.84
5.30

14.80
7.80
9.14
8.27
6.00

16.14
8.06
9.42
8.38
6.80

13.86
7.88
8.91
8.21
6.40

13.68
8.00
8.89
8.14
6.00

Average
of five
years
14.48
7.91
9.10
8.18
6.10

5.00

5.70

5.60

5.60

5.99

5.50

6.10

6.40

0.80

0.59

0.60

0.80

200405

200506

200607

200708

200809

Upto
30-09-09

14.57
7.94
8.67
8.08
5.93

15.27
8.16
8.90
8.08
7.49

5.58

6.53

6.30

5.80

5.95

5.87

6.42

0.62

0.68

0.59

0.58

4.2.4 The TNEB has furnished the following reasons for the higher auxiliary
consumption in ETPS and NCTPS:
(1)

The units in NCTPS are of KWU design and hence the auxiliary
consumption is higher than the norms.

(2)

In ETPS, the higher auxiliary consumption is due to start up

activities and low load operations.

4.2.5 TNEB has stated in their letter dated 22-07-2010 that they have installed
gas booster compressors in some of their gas turbine stations on account
of gas being delivered at a low pressure by M/s GAIL. In the absence of
installation of gas booster compressors, the gas delivered by GAIL could

99

not be used for generation of power and consequently the power plant
would have remained idle. It is reported that the contract with GAIL does
not provide for any compensation or damages for such breach of contract.
With a view to operate the power station using the gas as delivered by
GAIL, it has become necessary for TNEB to instal gas booster
compressors.

This

has

resulted

in

increased

auxiliary

energy

consumption.

Currently, clause 37 of terms and conditions for

determination of tariff regulations 2005 of the Commission provides for

auxiliary energy consumption as follows:
Open Cycle Gas based thermal power station - 1%
Combined Cycle Gas based thermal power station - 3%
4.2.6 The TNEB has sought relaxation of the auxiliary energy consumption
norms for their power stations as follows:
Tirumakottai

--

7.3%

Valuthur I

--

7.0%

Valuthur II

--

6.5%

Kuttalam

--

7.6%

4.2.7 The average of auxiliary energy consumption of the above power stations
during 2007-08, 2008-09 and 2009-10 is
Tirumakottai

--

5.96%

Valuthur

--

5.90%

Kuttalam

--

5.92%

4.2.8 The Central Electricity Authority in their Technical Standard on operation

norms for CCGT station, 2004 have permitted additional 2.5% auxiliary
energy consumption for gas booster compressors. Taking these factors
into consideration the Commission relaxes the norms and permits auxiliary
energy consumption at 6% for 2010-11, which is the average for the last

100

three years. This relaxation is approved by the Commission in accordance

with Clause 90 of (Terms and conditions for determination of tariff)
Regulations 2005.
4.2.9 The percentage of auxiliary consumption approved by the Commission is
as below:
Table 53 Auxiliary consumption approved by TNERC for TNEB owned thermal
generating stations

(in %)
Sl.
No.

Station

1
2
3
4
6
7
8
9
10

ETPS
TTPS
NCTPS
MTPS
Tirumakottai
Valuthur GTS-I
Kuttalam GTPS
Basin Bridge
Valuthur GTS-II

4.3

Average
of five
years

Actual
2008-09

Actual
Upto 3009-09

14.48
7.91
9.10
8.17
6.10
5.58
5.95
0.68

14.57
7.94
8.67
8.08
5.93
6.53
5.87
0.59

15.27
8.16
8.90
8.08
7.49
6.30
6.42
0.58

TNEBs
projection
for control
period
8.50
8.50
8.50
9.00
4.66
5.20
5.28
1.21
5.21

TNERCs
approval for
control
period
8.50
8.50
8.50
9.00
6.00
6.00
6.00
1.00
6.00

Capacity addition in Thermal Generation

4.3.1 The TNEB has projected the following generation from the additional units
being installed at North Chennai and Mettur:
Table 54 New thermal capacity additions by TNEB

(Generation in MUs)
Sl.
No.
1
2
3

Station
NCTPS Stage II (2 X
600 MW) Unit 1
NCTPS Stage II (2 X
600 MW) Unit 2
MTPS Stage III (1 X
600 MW)

2010-11
115

2011-12

2012-13

4020

3564

1481

3564

1728

3802

4.3.2 The estimated generation in these projects has been projected for 201112 and 2012-13 at normative parameters from the month subsequent to
the latest anticipated month of commissioning for the year 2011-12 and
2012-13.

101

4.3.3 Valuthur GTS-II with an an installed capacity of 92 MW was commissioned

on 17-02-2009. But the station is not in operation and is likely to be put
back in operation in July 2010.

The generation from this station is

projected accordingly.
4.3.4 The energy available from the own thermal stations on the above
parameters is as below:
Table 55 Energy available from TNEB owned thermal stations

Sl.
No

Stations

Capa
city
(in
MW)

PLF
(in
%)

Aux.
Cons
u. (in
%)

Energy available in MU
2010-11

2011-12

Gros
s
Gen.

Gros
s
Gen.

Aux.
Cons
u.

Net
ener
gy

2012-13
Aux.
Cons
u.

Net
ener
gy

Gros
s
Gen.

Aux.
Cons
u.

Net
ener
gy

ETPS

450

50.81

14.48

2003

290

1713

2003

290

1713

2003

290

1713

TTPS

1050

90.02

8.50

8280

704

7576

8280

704

7576

8280

704

7576

MTPS

840

91.75

9.00

6751

608

6143

6751

608

6143

6751

608

6143

NCTPS

630

86.79

8.50

4790

407

4383

4790

407

4383

4790

407

4383

600

80

8.50

2799

238

2561

4205

357

3848

600

80

8.50

1394

118

1276

4205

357

3848

MTPS Stage
III

600

80

9.00

2799

252

2547

4205

378

3827

Total Coal

4770

2182
4

2009

1981
5

2881
6

2617

2619
9

3443
9

3101

3133
8

Kuttalam
GTPS

101

77.08

6.00

682

41

641

682

41

641

682

41

641

Tirumakottai

107.8
8

68.71

6.00

649

39

610

649

39

610

649

39

610

95

71.62

6.00

596

36

560

596

36

560

596

36

560

92

78.37

6.00

474

28

446

632

38

594

632

38

594

120

5.75

0.58

60

0.35

60

60

0.35

60

60

0.35

60

2317

2619

2465

2619

2213
2

3143
5

2866
4

3705
8

Cap. Addn.
5

10
11
12

NCTPS
Stage II (unit
1)
NCTPS
Stage II (unit
2)

Valuthur
GTS-I
Valuthur
GTS-II
Basin Bridge
Total Gas
Grand Total

515.8
8
5285.
88

2461
2428
5

144.3
5
2153.
35

154.3
5
2771.
35

154.3
5
3255.
35

2465
3380
3

102

4.4

HYDEL GENERATING STATIONS

4.4.1 The TNEB has 36 hydel generating stations with a total installed capacity
of 2186.65 MW. The generation in stations of 856 MW capacities is linked
to irrigation.
4.4.2 The TNEB in the petition had proposed a capacity addition of 93 MW
during 2010-11 and 2011-12. The expected months of commissioning of
new projects are as below:
Sl.
No.

1
2
3
4
5
6
7
8

Table 56 New hydro capacity additions by TNEB

Name of the project
2010-11

Periyar Vaigai SHEP I

Periyar Vaigai SHEP II
Periyar Vaigai SHEP IV
Bhavani Barrage II
Periyar Vaigai SHEP III
Bhavani Barrage I
Bhavani Kattalai Barrage
II
Bhavani Kattalai Barrage
III
Total

Capacity
in MW
4.00
2.50
2.50
10.00

Expected month
of commissioning
June 2010
Nov 2010
Nov 2010
Dec 2010

19.00

2011-12

Capacity
in MW

Expected month
of commissioning

4.00
10.00
30.00

April 2011
May 2011
May 2011

30.00

June 2011

74.00

4.4.3 The total installed capacity of hydel generation at the end of each control
period will be as below :
Table 57 Total installed capacity of hydro stations

At the end of the year

2010-11
2011-12
2012-13

Installed capacity in MW
2206
2280
2280

4.4.4 In the petition, the TNEB has projected the available net energy from
hydel generating station as below :
Table 58 Projection of energy availability from hydro stations by TNEB.

PARTICULARS
Available net
energy in MU
from all hydel
generating
stations

2009-10

2010-11

2011-12

2012-13

5404

4924

4924

4924

103

4.4.5 As against the projected net generation of 5404 MU in 2009-10, the actual
gross generation was 5628.997 MU which is 29.39% of the installed
capacity.
4.4.6 The Commission directed the TNEB to furnish the following information :
a) The details of hydel capacity available
b) Auxiliary consumption
c) Consumption by Kadamparai Pumped storage Hydro station for
pump mode
d) The details of storage levels in terms of MU
4.4.7 The TNEB has furnished the generation availability as on 1st January
2010 as 814 MW
4.4.8 The Auxiliary consumption has been projected as below :
Table 59 Projection of auxiliary consumption in TNEB owned hydro stations

Sl.
No.
1
2

Details

2009-10

Auxiliary consumption (
MU)
Consumption by
Kadamparai PSHEP for
pump mode (MU)

2010-11

2011-12

2012-13

22

23

23

23

480

480

480

480

4.4.9 The TNEB has furnished the following reservoir levels in terms of MUs.
24.03.2010.
Niligris group

: 979.712 MU

Others except Mettur

: 248.320 MU

Mettur

Total

57.290 MU

: 1285.322 MU

4.4.10 The generation during the past period were as below :

Table 60 Trend in hydro generation
Sl
No
1
2

Details
Installed capacity in
MW
Capacity availability

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

1996

1996

2137

2184

2187

2187

11.88

25.00

34.39

32.89

33.60

28.04

104

3
4
5

factor (%)
Energy generated in
MU
Auxiliary
consumption in MU
Consumption by
KPSHEP for pump
mode

2067

4426

6141

6292

6455

5386

16

19

28

22

25

22

468

232

555

417

403

238

4.4.11 The years 2005-06 to 2008-09 were good monsoon years and the TNEB
has been creating Hydro Balancing Fund for generation in excess of 25%
of the installed capacity as per the provisions in the Tariff Regulations.
4.4.12 Regulation 76 (2) of the Tariff Regulations specifies the following :
The average contribution of power by the hydro stations in a normal
monsoon year shall be at the overall average plant load factor of 25%
and the licensee shall estimate quantum of generation from the hydro
stations at 25% PLF of the total installed capacity of all the stations as
at 31st March of the preceding year
4.4.13 Hence, 25% PLF of the installed capacity is considered as capacity
available factor and generation from hydel stations projected accordingly.
4.4.14 The Auxiliary consumption and consumption by Kadamparai PSHPS for
pump mode are projected (for all three years) based on the average of the
Auxiliary consumption and consumption of KPSHES for 5 years from
2004-05 to 2008-09.
4.4.15 The Commission fixes the following quantum generation from the hydro
stations:
Table 61 Projection of hydro generation by TNERC

Sl.
Details
No.
1 Installed capacity at the end of the
preceding year (in MW)
2 Generation at 25% PLF ( MU)
3 Auxiliary consumption
( MU)
4 Consumption by Kadamparai PSHES for
pump mode ( MU)
5 Net generation available ( MU)

2010-11

2011-12

2012-13

2187

2206

2280

4789
23

4831
23

4993
23

369

369

369

4397

4439

4601

105

4.4.16 The financial loss or gain on account of variation in quantum of power

purchase, if any, on account of changes in thermal hydro mix due to
natural calamities shall be adjusted through credit / debit in Hydro
Balancing Fund.
4.5

WIND BASED GENERATION

4.5.1 The TNEB had about 120 Numbers small and medium sized wind mills
with an aggregate generation capacity of 19.355 MW upto 2006-07.
4.5.2 Wind mills with an aggregate capacity of 1.8 MW have been handed over
to CWET. The TNEB has now wind mills with a generating capacity of
17.55 MW.
4.5.3 These wind mills are situated in the areas getting desired level of wind
flow namely Aralvoimozhi, Shencottah and Palghat Passes, during Southwest monsoon seasons. The TNEB get infirm power from these wind mills
during the period between May and September.
4.5.4 The generations from the Boards windmills during the period from 200304 were as below:
Table 62 Wind generation from TNEB owned wind mills

1
2
3

2003- 2004- 2005- 2006- 2007- 2008- 200904

05
06
07
08
09
10
Installed capacity in 19.355 19.355 19.355 19.355 17.55 17.55 17.55
MW
Energy generated in 24.346 18.036 14.581 17.591 12.058 10.285 11.092
MU
CUF (%)
14.36 10.64
8.60 10.38
7.84
6.69
7.21

4.5.5 The average generation in 2008-09 and 2009-10 i.e. after reduction in
generation capacity was 10.69 MUs.
4.5.6 The TNEB has projected a generation of 10 MUs for each of the control
period. This is accepted.
4.5.7 The total availability of energy from TNEBs own generating stations will
be as below:
Table 63 Total availability of energy from TNEBs own generating stations

106

(In MUs)
Sl.
No.

Details

1.

Coal based
Thermal
Stations
Gas based
Thermal
Stations
Hydel

2.

3.

Gross
Gen.
21824

2010-11
Aux.
2009

Net
Gen.
19815

Gross
Gen.
28816

2461

144.35

2317

4789

392

10
29084

2011-12
Aux.
2617

Net
Gen.
26199

Gross
Gen.
34439

2619

154.35

2465

4397

4831

392

10

10

2545.35

26539

36276

2012-13
Aux.
3101

Net
Gen.
31338

2619

154.35

2465

4439

4993

392

4601

10

10

10

3163.35

33113

42061

3647.35

38414

Generation
4.

Wind Mills
Total

4.6

Determination of quantum of energy to be purchased:

Table 64 Quantum of energy to be purchased

(In MUs)
Sl.
No.
1.
2.

3.

Details

Net Input Energy

Requirement
Energy available in
own
generating
stations
Balance energy to
be
purchased
from
external
sources

TNEB

TNERC

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

74085

80012

86362

70933

74453

78196

26879

33459

36836

26539

33113

38414

47206

46553

49526

44394

41340

39782

107

CHAPTER 5
POWER PURCHASE
5.1

The TNEB has submitted that they source power from the Generating
Stations of National Thermal Power Corporation at Ramagundam and
Talcher, Neyveli Lignite Corporations Thermal Stations and Nuclear
Power Corporations power stations Madras Atomic Power Station
(MAPS) at Kalpakkam and Kaiga Atomic Power Stations. They also get
special allocation from Talcher for pooling equivalent quantum of power
from NTPCs Kayankulam CCGT power station. Apart from this TNEB
purchase power from seven Independent Power Producers (IPPs) in the
State, surplus power from Captive Power Plants (CPPs), Co-generations
and private Wind energy producers.

5.2

The energy availability from the above sources are arrived at as below:

5.3

Central Generating Station :

5.3.1 The availability of energy from CGS is projected with reference to the
Normative Annual Plant Availability Factor (NAPAF) specified in the CERC
(Terms and Condition of Tariff) Regulation, 2009. In respect of Nuclear
Power Generation, the energy entitlement is computed at NAPAF of 70%.
Table 65 Entitlement of energy from Central Generating Stations
Sl.
No.

Name of the
Station

Installed
Capacity
(in MW)

Allocated Capacity
Firm
Allocation
(in MW)

Total
Allocated
Capacity
(in MW)

Allocation
from UnAllocated
Share
(in MW)

NAPAF
%

Energy
Entitlement on
gross
basis
(in MU)

1.

Neyveli TS-I

600

475

475

72

2996

2.

Neyveli
TS-IIStg.-I
Neyveli
TS-IIStg.-II
Neyveli TS-I-Exp.

630

176

10

186

75

1222

840

265

15

280

75

1840

420

193

33

226

80

1584

2100

470

58

528

85

3931

6.

NTPC-RSTPSI & II
NTPC-RSTPS-III

500

118

14

132

85

983

7.

NTPC Talcher-II

2000

475

23

498

82

3577

3.
4.
5.

108

8.

9.
10.

Madras
Atomic
Project,
Kalpakkam
Kaiga
Atomic
Power Project
External
Assistance
23) NTPC
Eastern
Region
Farakka (1.46%)
Kahalgaon
(1.44%)
Talcher-I (1.46%)

11.

Special Allotment

12.

NTPC
Kayankulam
CCGTS
Total

440

328

330

70

2024

660

150

20

170

70

1042

1600

23.3

23.3

85

840

12.1

12.1

85

1000

14.6

14.6

82

75

75

85

558

180

180

85

1340

2955

175

3130

360

}
}
}
}
}
}

368

21465

5.3.2 The following Capacity additions have been proposed during 2010-11 to
2012-13 under Central Sector. The energy available from these additional
capacities is projected at 85% NAPAF for all Central Generating Stations
and Joint Venture Projects. The energy from Kudankulam APS is
projected at NAPAF of 85%. The projection for the proposed addition
from Kaiga APS and Kalpakkam APS is made at 70%
5.3.3 The available energy for the stations except Kaiga APS, NLC stage II
expansion and Simhadri is arrived at from the month following the latest
expected month of commissioning. In respect of Kaiga APS, the project
has not been commissioned as per schedule and the projection is now
made from April 2011. In respect of NLC, the projection for the 1st unit has
been made from Jan 2011 and for the 2nd unit from July 2011. In respect
of Simhadri, the projections are made from April 2011 and June 2011.
5.3.4 The energy availability is determined as below :

109

Table 66 Projection of energy availability from Central Generating Stations

Sl.
No.

1.

2.

3.
4.

5.

6.

7.

8.

9.

10.
11.
12.
13.

5.4

Name of the
Project

Installed
Capacity
MW

Kaiga
Atomic
Power Station
Stage-II - Unit-IV
Neyveli
TS-IIExpansion Unit
I
Kudankulam APS
Unit-I
Simhadri Stage-II
Unit-III

220

Availabl
e
Capacity
MW
36

NAPAF
%

Latest expected
month of
commissioning

70

May 2010 / April

Energy availability
(in MUs)
201
201
20120-11 1-12
13
221
221

2011
250

163

85

June 2010 /

299

121
4

1214

848

344
0
707

3440

906

1206

589

707

258

3447

January 2011
1000

462

85

Dec. 2010

500

95

85

Dec. 2010 / April

707

2011

Neyveli
TS-IIExpansion Unit
II
Simhadri Stage-II
Unit-IV

250

Kudankulam APS
Unit-II

1000

NTPC-TNEB JV
at Vallur Stage-I
Unit-I
NTPC-TNEB JV
at Vallur Stage-I
Unit-II
PFBR,
Kalpakkam
NLC-TNEB JV at
Tuticorin Unit-I
NLC-TNEB JV at
Tuticorin Unit-II
NTPC-TNEB JV
at Vallur Stage-I
Unit-III
Total

500

375

85

Nov. 2011

926

2792

500

375

85

Dec. 2011

689

2792

500

167

70

March 2012

1024

500

247

85

April 2012

1688

500

247

85

Feb. 2013

156

500

375

85

Nov. 2012

926

114

112

20320

80

162

85

Feb. 2011 / July

2011

500

95

85

May 2011 / July

2011

463

85

June 2011

3262

Independent Power Producers (IPPs) :

5.4.1 There are 7 IPPs supplying power to TNEB under Power Purchase
Agreement (PPA).
5.4.2 The IPP generators are entitled for incentive for generation beyond
68.4932%.
110

5.4.3 The energy availability is arrived at 85% PLF from the IPPs as below :
Table 67 Entitlement of energy from IPPs

Sl.
No.
1.
2.
3.
4.
5.
6.
7.

5.5

Station

G.M.R. Power Corpn. Pvt. Ltd.

Samalpatti Power Co. Pvt. Ltd.
Madurai Power Corpn. Pvt. Ltd.
PP Nallur Power Gen. Co. Pvt. Ltd.
ST-CMS Electric Co. Ltd.
Aban Power Co. Ltd.
Penna Electric Co. Ltd.
Total

Installed
Capacity in
MW
196.00
105.66
106.00
330.50
250.00
113.20
52.80
1154.16

PLF%

85
85
85
85
85
85
85

Energy
Entitlement
in MUs
1459
787
789
2461
1861
843
393
8593

NCES and Infirm Sources :

5.5.1 Captive Power Plants

(1)

The TNEB has been purchasing the excess power from the Captive
Power Plants of 214 MW capacity.

(2)

The TNEB in the petition have projected the following quantum of

purchase from Captive Power Plants.
Table 68 Projection of energy from CPPs by TNEB

Purchase in
MUs

2007-08
711

2008-09
828

2009-10
779

2010-11
671

2011-12
571

2012-13
371

(3)

The actual purchase during the year 2009-10 was 630.00 MUs.

(4)

The projection for the control period is approved.

5.5.2 Co-generation and Biomass Generation :

(1)

The TNEB has been purchasing power from Bagasse Based

Cogeneration and Biomass based power plants. The capacity on
31.03.2010 was as below:
Biomass

137.05 MW

Cogen

559.90 MW

111

5.5.3 The TNEB has projected the following quantum of purchase from these
sources.
Table 69 Projection of energy from Co-generation and biomass generation by TNEB

Purchase from
Cogeneration &
Biomass
generation in MUs

2007-08
1451

2008-09
1102

2009-10
1250

2010-11
1589

2011-12
1252

2012-13
889

5.5.4 As against the projected purchase of 1250 MUs in 2009-10, the actual
purchase during the year was 837.00 MUs. The actuals during the period
from 2007-08 to 2009-10 were fluctuating. The purchase for 2010-11 is
projected with 10% increase over the actuals in 2009-10.
5.5.5 The TNEB has not considered the purchase obligation from 183 MW of
generation capacity being established by co-operative sugar mills. The
capacity is likely to commence generation from July 2011.
5.5.6 The purchase from Cogen in 2009-10 is around 17% of the capacity.
Hence, the projection of purchase from additional capacity of 183 MW is
made at 17%. The purchase of energy from the additional capacity would
be as below:
2011-12

136 MUs (50% of 273 MUs)

2012-13

273 MUs

5.5.7 The TNEB has projected reduced purchases from these sources for 201112 and 2012-13. As the purchase from these sources fall outside Merit
Order Despatch, the purchases have been projected at the available
capacity level.
5.5.8 The purchase from Bagasse Based Cogeneration and Biomass
generation is fixed as below :
Table 70 Projection of energy from Co-generation and biomass generation by TNERC
Bagasse Based
Cogeneration &
Biomass
generation in MUs

2007-08
1451

2008-09
1102

2009-10
837

2010-11
921

2011-12
1149

2012-13
1387

112

5.6

Private Wind Mills :

5.6.1 The TNEB has submitted that there are 9160 WEG HT services for an
installed capacity of 4889.765 MW at the end of 2009-10 as below:
Table 71 Wind energy installed capacity

Board
111
17.55

WEG
Capacity in MW

Private
9049
4872.215

Total
9160
4889.765

5.6.2 The TNEB has projected the following purchases from private wind mills
during the control period :
Table 72 Projection of wind energy purchase by TNEB

Source

Actuals

BE

Estimated Purchase

2007200820092010-11
2011- 2012-13
08
09
10
12
Private Wind
6055
6645
8283
8452
8152
8152
Mills

(in

MUs)

5.6.3 As against the projected generation of 8283 MUs during the year 2009-10,
the actual generation from private wind mills was 8134.415 MUs, with an
increase of 22.4% over the generation in 2008-09. The installed capacity
also increased by 602.025 MWs.
5.6.4 The TNEB has reported that they expect a capacity addition of 645 MW in
2010-11. They have not furnished projected capacity addition for 2011-12
and 2012-13.
5.6.5 The TNEB has furnished month-wise capacity and generation details for
the FY 2007-08, 2008-09 separately for the wind mills in Tirunelveli and
Udumalpet areas. For 2009-10, the overall month-wise capacity addition
and generation have been furnished.
5.6.6 The month-wise Capacity Utilization Factor (CUF) are as below :

113

Table 73 Month-wise Capacity Utilization Factor (CUF)

(CUF in %)
Month
April
May
June
July
August
September
October
November
December
January
February
March

2007-08
Udumalpet Tirunelveli
3.59
4.71
9.52
11.36
33.61
31.09
45.93
30.20
43.43
36.00
41.92
30.11
36.02
27.30
4.45
10.15
2.63
10.50
3.21
15.75
3.16
10.33
3.84
10.17

2008-09
Udumalpet Tirunelveli
4.65
4.18
22.56
24.19
37.82
36.48
44.35
34.24
48.30
35.18
27.37
25.75
23.98
18.28
2.38
5.51
2.47
10.72
3.26
16.96
5.28
13.72
3.85
5.01

2009-10
3.70
21.51
43.30
40.34
44.80
29.01
30.98
5.37
5.68
9.46
11.38
4.68

5.6.7 Based on month-wise generation, weighted average CUF for 2007-08 to

2009-10 were as below :
2007-08

19.12%

2008-09

18.91%

2009-10

20.67%

5.6.8 The average of the above is 19.57%.

5.6.9 The capacity addition for 2011-12 and 2012-13 are assumed at 300 MW
each year.
5.6.10 The purchase from Private Wind Mills is projected as below :
Table 74 Purchase from Private Wind Mills

Sl. No
1
2
3

Particulars
2009-10
Capacity at the end of 4872.215
the year (in MW)
CUF (in %)
Generation (in MU)
8134.415

2010-11
5517.215

2011-12
5817.215

2012-13
6117.215

19.57
9458

19.57
9973

19.57
10487

5.6.11 In para 8.18.4 of the comprehensive tariff order on wind energy (Order
No.1 of 2009, dated 20-03-2009), the Commission has fixed the
Renewable Energy Purchase Obligation at a minimum of 13% for 2009-10
and 14% for 2010-11. The details of actual energy purchase and
projection for 2009-10 and 2010-11 are as below:

114

Table 75 Details of actual energy purchase and projection for 2009-10 and 2010-11

Sl. No

Details

Input energy (in 67619

MU)
Purchase
from 8971
renewable (in MU)
RPO %
13.26

2
3
5.7

2009-10

2010-11
(Estimated)
70933
10379
14.63

Determination of quantum of Power Purchase :

5.7.1 Regulation 75(1) of the TNERC (Terms and Condition for Determination of
Tariff) Regulation 2005, specifies the following:
The Distribution Licensee shall procure power on least cost basis and
strictly on Merit Order Despatch and shall have flexibility to procure power
from any source in the country.
5.7.2 The quantum of energy units required to be purchased has been derived
based on the Energy Input requirement for the control period less the
quantum of energy units generated, to be generated through TNEBs own
thermal, hydel and wind energy generating stations.
5.7.3 The energy to be purchased from must run station such as Nuclear
Station (MAPS, KAPS, Kudankulam APS), infirm power sources such as
co-generation, captive wind mills is outside the Merit Order Despatch. The
energy available from Must Run station will be as below:
Table 76 Energy available from Must Run Station (Nuclear Station)
Sl. No.

1.
2.
3.
4.
5.
6.

Name of
Station

the

MAPS
KAPS
Additions
Kaiga APS
Kudankulam-I
Kudankulam-II
PFBR,
Kalpakkam
Total

Actuals

Energ
y
Entitle
-ment
MU

200708
MU

200809
MU

200910
MU

2024
1042

1064
564

904
613

1259
721

Propose
d
by
TNEB
MU for
control
period
1431
911

Projection by TNERC
201011
MU

201112
MU

201213
MU

1431
911

1431
911

1431
911

184
848
0
0

221
3440
2588
0

221
3440
3447
1024

3374

8591

10474

115

5.7.4 The quantum of power purchase through Merit Order ranking will be as
below :
Table 77

Quantum of power purchase through Merit Order ranking

Description

2010-11

2011-12

2012-13

Energy input requirement in MU

70933

74453

78196

Less : Net energy available through own

generation (Thermal, hydel and wind
mill) in MU
Energy to be purchased in MU

26539

33113

38414

44394

41340

39782

14424

20284

22719

29970

21056

17063

Energy available from Nuclear, Infirm and

NCES sources
Energy to be purchased through Merit Order
Ranking

5.7.5 The Merit Order Ranking of various sources is shown below (The variable
cost includes fuel price adjustment also).
5.8

Merit Order Ranking

Table 78 The Merit Order Ranking of various sources

Sl.
No.

Power Purchase Source

1.
2.
3.
4.
5.
6.
7.
8.
9.

Neyveli TS-I
Neyveli TS-II-Stage -I
Neyveli TS-II-Stage -II
Neyveli TS-Expansion
NTPC SR I & II
NTPC SR III
NTPC Talcher-II
NTPC ER
NTPC Kayankulam
IPPs
G.M.R. Power Corpn.
Ltd.
Samalpatti Power Co.
Ltd.
PP Nallur Power Gen.
Pvt. Ltd.
Madurai Power Corpn.

10.
11.
12.
13.

Variable Cost
Merit
(Rs./kWh)
Order
2008-09
2009-10
As per latest Ranking
invoice
1.37
1.48
1.48
8
1.22}
1.345
1.36
6
1.32}
1.18
1.26
1.27
4
1.35
1.42
1.34
5
1.20
1.28
1.47
7
0.96
1.06
0.86
1
1.41
1.79
1.95
10
7.29
6.29
7.30
15
Pvt.

4.97

6.01

6.58

14

Pvt.

5.08

6.05

6.23

13

Co.

6.19

5.42

3.13

11

Pvt.

5.20

5.72

6.17

12
116

14.
15.
16.

Ltd.
ST-CMS Electric Co. Ltd.
Aban Power Co. Ltd.
Penna Electric Co. Ltd.

1.20
0.72
0.83

1.50
0.85
1.06

1.48
0.88
1.14

9
2
3

5.8.1 M/s PPN Power Generating Co. Ltd. have been using more gas from
11/2009 and hence the merit order has been arranged with the latest
invoice, taking the per unit variable cost as Rs. 3.13 / kWh in December
2009 against Rs.6.19/kWh in 2008-09.
5.8.2 The energy unit available to TNEB from each of the external sources
including proposed additional capacity has been arrived with reference to
the NAPAF and quantum of power purchase during previous years. The
energy available from infirm sources such as Biomass Plants, Bagasse
based cogeneration plants and wind mills has been arrived at based on
past trend and proposed capacity addition.
5.8.3 The quantum of energy to be purchased from all external sources
including nuclear and NCES sources is fixed as detailed below
considering the Merit Order Ranking:
Table 79 Quantum of energy to be purchased from all external sources
(in MUs)
Sl.
No.

1.
2.
3
4.
5.
6.
7.

8.
9
10

Stations

CGS
Neyveli TS-I
Neyveli TSII
Neyveli TSExpansion
NTPC SR I
& II
NTPC SR III
NTPC

Talcher-II
NTPC ER
&
Spl
allotment
NTPC

Kayankulam
Maps
Kaiga

201011

TNEB
2011- 201212
13

201011

TNERC
201112

201213

3270
3001

3027
2842

3027
2842

3027
2842

3250
2842

2996
2842

2996
2842

1584

1485

1434

1434

1434

1434

1434

1434

3931

4090

3913

3913

3913

3913

3913

3913

983
3577

1101
3802

965
3636

965
3636

965
3636

965
3636

965
3577

965
3577

926

498

743

743

743

743

743

743

1340

1259

1076

926

926

1076

926

926

2024
1042

1259
721

1431
911

1431
911

1431
911

1431
911

1431
911

1431
911

Energy
Entitlem
ent

200910

2996
3062

117

11
12
13

14

15
16
17

18
19
20
21
22
23
24
25
26

27

CGS Additions
NLC TS II
NTPC
Simhadri
NTPC

TNEB JV at
Vallur
NLC

TNEB JV at
Tuticorin
Kaiga APS
Kudankulam
APS
Kalpakkam
PFBR
Total CGS
21465
IPPs
GMR
1176
Samalpatti
634
PPN
1983
Madurai
636
ST-CMS
1500
ABAN
679
Penna
317
Total IPP
6925
CPPs
Biomass &
Cogeneration
Private
Windmills
Total
28390

1788

1750
872

1750
1026

864

3240

5468

400

1601

3137

3766

902

902

2824

299

1750
872

1750
1026

1615

6510

1688

848

221
3137

221
3766
1024

20486

25454

30129

34341

21348

27333

35723

1145
481
2260
467
1655
677
339
7024

1418
722
2259
540
1809
850
400
7998
671
1589

900
300
2000
300
1700
850
400
6450
571
1252

750
300
1600
300
1574
850
400
5774
371
889

1300
300
2259
540
1809
850
400
7458
671
921

300
150
1406
179
1574
850
400
4859
571
1149

300
150
1441
151
1574
850
400
4866
371
1387

8452

8152

8152

9458

9973

10487

44164

46554

49527

39856

43885

52834

37111

5.8.4 The energy availability is matched with the energy input requirement as
below:
Table 80 Matching of energy availability with energy requirement

Description
Energy input requirement in MU
Energy required for demand supply mis match
(in MU)
Total Energy required (in MU)
Less : Net energy available through own
generation (Thermal, hydel and wind
mill) in MU
Energy to be purchased from external sources
(in MU)
Energy to be procured in the open market (in
MU)
Energy to be sold in the open market (in MU)

2010-11
70933

2011-12
74453
2000

2012-13
78196
2000

70933
26539

76703
33113

80696
38414

39856

43885

52834

4538

2250

2000

4545

15052

118

5.8.5 The TNEB may have to procure power to meet the short term requirement
as well as to fill the demand supply mis-match from the open market and
also to sell the surplus energy available at any point of time in the open
market.
5.8.6 The estimate for 2011-12 and 2012-13 will be reviewed and re-fixed
during the truing up of actuals for 2010-11subject to prudence check.

5.9

Power Purchase Cost

5.9.1 Regulation 75 (3), 75 (4) and 75 (5) in TNERC Tariff Regulations are
extracted below:
(3) The cost of power purchased from Central Generating Company
shall be worked out based on tariff determined by the Central
Electricity Regulatory Commission.
(4) The cost of power purchased from IPPs shall be considered based
on Power Purchase Agreement.
(5) In case of power purchased from Captive Generators and other non
conventional energy sources, the cost shall be worked out as per the
policy approved by the Commission.
5.9.2 The following procedures have been adopted to determine the cost of
power purchase:
(1)

The validity of tariff determined by the CERC for the period from
2004-05 to 2008-09 is already lapsed and the Central Generating
Companies (NTPC and NLC) have filed petitions before the CERC
for determination of Tariff applicable for the period from 01-04-2009
to 31-03-2014.

(2)

The NTPC has sought for single uniform rate of energy charges for
all the five years with fuel cost adjustments and different annual
capacity charges for each year.

(3)

NLC has sought for separate energy charges and capacity charges
for each year of the five years period.

119

(4)

In respect of NLC TS I which is being operated beyond its life, NLC

has sought for special allowance in addition to enhanced capacity
charges and energy charges.

(5)

Tariff proposed in the petition before the CERC with 5% escalation

on energy charges to take care of fuel cost adjustments has been
considered for the purpose of estimating the cost of power
purchase from the CGS (except nuclear stations). The special
allowance proposed for NLC TS I is not considered.

(6)

The Nuclear Power Corporation of India Ltd, has indicated that the
tariff for the Kudankulam Atomic power project and the PFBR
project at Kalpakkam would be around Rs.3.50 per unit and this
rate has been adopted for estimation.

(7)

For Joint Venture projects, the levelized tariffs indicated in the

agreements have been adopted to estimate the power purchase
cost.

(8)

For new NTPC station at Simhadri (expansion) and NLC II

Expansion, the rates for the similar capacity stations at these
locations have been adopted.

(9)

The cost of power purchase from IPPs has been estimated with
reference to PPAs.

(10) The cost of power from CPP, Biomass, Co-gen and windmills has
been estimated with reference to applicable Tariff Order of the
Commission.
(11) The Transmission charges payable to PGCIL have been estimated
with reference to the petition before the CERC.
(12) During 2009-10, the TNEB has purchased power in open market at
a price ranging from Rs.5.08 per unit to Rs.10.46 per unit with an
over all average of Rs.5.49 per unit. It is seen from the data
available in public domain that the prevailing rates of UI and Power
Exchange were in the range of Rs.3.00 to Rs.4.00 per unit during
first quarter of 2010-11, which is the peak season for the country as

120

a whole. Accordingly, it will be appropriate to estimate the market

power procurement at an average rate of Rs.5.00 per unit and the
sale of surplus power is also to be considered at the same rate.
(13) The surplus power projected for 2011-12 and 2012-13 is accounted
for average power purchase cost.
(14) The Commission approves the following power purchase cost for
the period from 2010-11 to 2012-13.
Table 81 TNERC approved power purchase cost for the year 2010-11

Year 2010-11
Sl. No

Stations

CGS
Neyveli TS-I
Neyveli TS-II
Neyveli TS-Expansion
NTPC SR I & II
NTPC SR III
NTPC Talcher-II
NTPC ER & Spl
allotment
NTPC Kayankulam

Maps

10

Kaiga
CGS Additions
NLC TS II Expansion
NTPC Simhadri
NTPC - TNEB JV at
Vallur
NLC - TNEB JV at
Tuticorin
Kaiga APS
Kudankulam APS
Kalpakkam PFBR
Power Grid
Total CGS
IPPs
GMR
Samalpatti
PPN
Madurai
ST-CMS

1
2
3
4
5
6
7

11
12
13
14
15
16
17
18

14
15
16
17
18

Variable
cost (in
Ps/unit)

Total variable
cost
(Rs.in
Crores)

3250
2842
1434
3913
965
3636
743

202.65
190.00
170.00
156.73
114.25
120.69
190.68

658.61
539.98
243.78
613.28
110.25
438.83
141.68

340.35
173.09
172.85
194.44
91.67
285.11
28.03

998.96
713.07
416.63
807.72
201.92
723.94
169.71

1076

617.59

664.53

131.76

796.29

1431

193.11

276.34

276.34

911

320.18

291.68

291.68

299

202.62

60.58

848

350.00

296.80

21348
1300
300
2259
540
1809

658.22
703.66
312.77
616.74
147.68

Fixed
charges
(Rs.in
Crores)

Total Cost
(Rs.in
Crores)

Units (in
MU)

30.61

91.19

296.80

4336.35

512.00
1959.91

512.00
6296.26

855.69
211.10
706.55
333.04
267.15

172.76
99.54
297.04
107.82
258.91

1028.45
310.64
1003.59
440.86
526.06

121

19
20

850
400
7458
4538

226.00
274.00

21

ABAN
Penna
Total IPP
Traders

500.00

192.10
109.60
2675.22
2269.00

22
23

CPPs
Biomass

671
111

384.00
466.00

257.66
51.73

24
25

Co-Gen
Private Windmills
Total

810
9458
44394

392.00
359.40

317.52
3399.21
13306.69

936.07

192.10
109.60
3611.29
2269.00
257.66

2895.98

51.73
317.52
3399.21
16202.67

Table 82 TNERC approved power purchase cost for the year 2011-12

2011-12
Sl.
No.

Stations

Variable
cost (in
Rs/unit)

Units (in
MU)

Total
variable
cost (Rs.in
Crores)

Fixed
charges
(Rs.in
Crores)

Total Cost
(Rs.in
Crores)

CGS
1

Neyveli TS-I

2996

218.40

654.33

353.18

1007.51

Neyveli TS-II

2842

200.55

569.96

181.91

751.87

Neyveli TS-Expansion

1434

182.07

261.09

199.97

461.06

NTPC SR I & II

3913

156.73

613.28

204.80

818.08

NTPC SR III

965

114.25

110.25

91.94

202.19

NTPC Talcher-II

3577

120.69

431.71

287.32

719.03

NTPC ER & Spl

allotment

743

190.68

141.68

28.95

170.63

NTPC Kayankulam

926

617.59

571.89

131.89

703.78

Maps

1431

193.11

276.34

0.00

276.34

10

Kaiga

911

320.18

291.68

0.00

291.68

CGS Additions
11

NLC TS II

12

NTPC Simhadri

13

NTPC TNEB JV at
Vallur
NLC TNEB JV at
Tuticorin

14
15

Kaiga APS

16

Kudankulam APS

17

Kalpakkam PFBR

18

Power Grid

0.00
1750

202.62

354.59

211.00

565.59

872

171.86

149.86

135.00

284.86

1615

246.00

397.29

0.00

397.29

292.00

0.00

0.00

221

350.00

77.35

0.00

77.35

3137

350.00

1097.95

0.00

1097.95

0.00

0.00

538.00

538.00

350.00

122

Total CGS

27333

5999.25

2363.96

8363.21

IPPs
19

GMR

300

691.13

207.34

174.45

381.79

20

Samalpatti

150

738.84

110.83

99.08

209.91

21

PPN

1406

328.41

461.74

292.80

754.54

22

Madurai

179

647.58

115.92

105.37

221.29

23

ST-CMS

1574

155.06

244.07

250.11

494.18

24

ABAN

850

237.30

201.71

201.71

25

Penna

400

287.70

115.08

115.08

1456.68

921.81

2378.49

Total IPP

4859

26

Traders

2000

500.00

1000.00

1000.00

27

CPPs

571

384.00

219.26

219.26

28

Biomass

111

480.30

53.31

53.31

29

Co-generation

1038

491.00

509.66

509.66

30

Private Windmills

9973

359.40

3584.30

3584.30

Total

12822.46

45885

Less: Sale of surplus

power
Net power purchase
cost

4545

500.00

2272.50
10549.96

41340

3285.77

16108.23
2272.50

3285.77

13835.73

Table 83 TNERC approved power purchase cost for the year 2012-13

2012-13
Sl. No.

Units
(in MU)

Stations

Variable
cost (in
Rs/unit)

Total
variable
cost (Rs.in
Crores)

Fixed
charges
(Rs.in
Crores)

Total Cost
(Rs.in
Crores)

CGS
1

Neyveli TS-I

2996

235.20

704.66

438.96

1143.62

Neyveli TS-II

2842

200.55

569.96

190.24

760.20

Neyveli TS-Expansion

1434

190.68

273.44

201.46

474.90

NTPC SR I & II

3913

156.73

613.28

211.40

824.68

NTPC SR III

965

114.25

110.25

91.37

201.62

NTPC Talcher-II

3577

120.69

431.71

288.29

720.00

NTPC
allotment

743

190.68

141.68

30.01

171.69

ER

&

Spl

123

NTPC Kayankulam

926

617.59

571.89

111.13

683.02

Maps

1431

193.11

276.34

0.00

276.34

10

Kaiga

911

320.18

291.68

0.00

291.68

CGS Additions

0.00

0.00

11

NLC TS II

1750

202.62

354.59

242.00

596.59

12

NTPC Simhadri

1026

180.45

185.14

135.00

320.14

13

NTPC TNEB JV
Vallur
NLC TNEB JV
Tuticorin

at

6510

246.00

1601.46

0.00

1601.46

at

1688

292.00

492.90

0.00

492.90

221

350.00

77.35

0.00

77.35

14
15

Kaiga APS

16

Kudankulam APS

3766

350.00

1318.10

0.00

1318.10

17

Kalpakkam PFBR

1024

350.00

358.40

0.00

358.40

18

Power Grid

0.00

564.90

564.90

Total CGS

35723

8372.82

2504.76

10877.58

IPPs
19

GMR

300

725.69

217.71

176.22

393.93

20

Samalpatti

150

775.78

116.37

99.08

215.45

21

PPN

1441

344.83

496.90

290.89

787.79

22

Madurai

151

679.96

102.67

105.18

207.85

23

ST-CMS

1574

162.81

256.26

241.31

497.57

24

ABAN

850

244.42

207.76

0.00

207.76

25

Penna

400

296.33

118.53

0.00

118.53

1516.20

912.68

2428.88

Total IPP

4866

26

Traders

2000

500.00

1000.00

27

CPPs

371

384.00

142.46

0.00

142.46

28

Biomass

111

480.30

53.31

0.00

53.31

29

Co-generation

1276

491.00

626.52

0.00

626.52

30

Private Windmills

10487

359.40

3769.03

0.00

3769.03

Total

54834

15480.34

3417.44

18897.78

Less: Sale of surplus

Energy

15052

Net Power
Cost

39782

31

Purchase

500.00

1000.00

7526.00
7954.34

7526.00
3417.44

11371.78

124

(15)

Under Regulation 3 (vii) of MYT Regulations, the variation on account of

sales and power purchase shall be reviewed at the end of each year of the
control period based on audited accounts of the licensee and prudence
checks by the Commission.

125

CHAPTER 6
EXPENDITURE

6.1

Segregation of Accounts

6.1.1 The TNEB is functioning as an integrated utility and maintain consolidated

accounts for all the functions.
6.1.2 In view of the provisions contained in the Tariff Regulations, the
Commission is required to determine generation tariff, tariff for Intra-State
transmission and retail tariff for distribution separately. It is therefore
imperative to segregate the accounts function wise.
6.1.3 The Commission in its letter dated 22-01-2010, directed the TNEB to
furnish split up details for variable cost and fixed capacity charges (cost
statement) for TNEBs own generating stations on normative basis.
6.1.4 The Commission also directed the TNEB in letter dated 22-01-2010 to
furnish the wheeling charges, surcharge / additional surcharge for each
year of the control period for the Commissions consideration and
approval.
6.1.5 The Commission in letter dated 19-02-2010, directed that TNEB may file
separate statement for thermal, gas (Station wise) and hydro stations in
the formats specified in the tariff Regulations duly segregating loans and
assets and allocating proportionate interest and finance charges, RoE,
etc.
6.1.6 The TNEB in letter dated 24-02-2010, submitted the asset details and
expenses for total annual transmission charges.
6.1.7 The TNEB in letter dated 18-04-2010, submitted the station wise summary
of tariff proposal, normative parameters considered for tariff computation,
assets and interest workings and O & M expenses. The variable cost of
each station was not computed and furnished.
6.1.8 In letter dated 23-04-2010, the TNEB has submitted the details for
calculation of wheeling charges.

126

6.1.9 The segregation of gross fixed assets is required to compute the various
components constituting fixed (capacity) charges.
6.1.10 In the Annual Statement of Accounts of TNEB, gross fixed assets and
depreciation are exhibited function wise. The TNEB has stated that they
have adopted the following assumptions in segregating the expenditures.
6.1.11 The borrowings and interest on borrowings (for which accounts are
maintained centrally at Head Quarters) have been allocated between all
the functions in the ratio of gross fixed assets.
6.1.12 The TNEB has separate accounts for each generating station. Out of the
total operation and maintenance (O & M) expenses in the consolidated
annual statement of accounts, the expenses relating to generating stations
have been segregated based on the expenses recorded in the balance
sheet of respective generation station. The balance O & M expenses
relating to transmission and distribution have been allocated in proportion
to the gross fixed assets of these functions.
6.1.13 Taking into account information in this Order, TNEB shall file a petition for
determination of wheeling charges, surcharge / additional surcharge.

6.2 Commissions Analysis and decision on Allocation of expenditures to

various functions
6.2.1 Capital Cost / Fixed Assets
6.2.1.1 The TNEB has submitted the following information on gross fixed
assets and net fixed assets:
Table 84 Details of gross and net fixed assets furnished by TNEB

(Rs. In Crores)
Sl.
No.

Details

Gross
Fixed
Assets at the
beginning
Addition
during
the year
Deductions

2
3

2007-08
(Audited
A/Cs)

2008-09
(Prel.
A/Cs)

2009-10

2010-11

2011-12

2012-13

21565.91

23503.56

25016.17

27329.83

29874.97

32676.42

4585.69

2163.98

2313.66

2545.14

2801.45

3085.38

127

5
6
7
8

during the year

Gross
Fixed
Assets at the end
of the year
Net depreciation
for the year
Accumulated
Depreciation
Net Fixed Assets
Work in Progress

2648.04

651.37

23503.56

25016.17

27329.83

29874.97

32676.42

35761.80

666.40

774.43

992.49

1086.36

1189.81

1303.86

9400.34
14103.22

10174.77
14841.40

11167.26
16162.57

12253.62
17621.35

13443.43
19232.99

14747.29
21014.51

3008.37

4032.78

4032.78

4032.78

4032.78

4032.78

6.2.2 Addition to capital cost / additional capitalization

6.2.2.1

The TNEB has proposed addition to Gross Fixed Assets (additional

capitalization) for the control period without identifying the specific
asset.

6.2.2.2

The TNEB maintain the value of work in progress (pending

capitalization) at the end of each year of control period at Rs.4032.78
Crores.

6.2.2.3

Regulation 17 (5) of the Tariff Regulations, 2005 and Regulation 3 (v)

of the Tariff Regulation under MYT framework specifies that the
licensee shall get the capital investment plan approved by the
Commission before filing ARR and Application for determination of
Tariff. The TNEB has not complied with this provision.

6.2.2.4

The TNEB submitted the capital investment plan for 2009-10 and
2010-11 in their letter dated 17-12-2009 and the capital investment
plan for 2011-12 and 2012-13 in letter dated 31-03-2010 without
capitalization schedule.

6.2.2.5

The TNEB has proposed capital investments for the control period as
below:
Table 85 Capital investments proposed by TNEB

(Rs.in Crores)
Project Details
2010-11
2011-12
2012-13
Generation
MTPS Stage III (1 X 600 MW)
2090.00
997.52
NCTPS Stage II unit I (1 X 600 MW)
2508.22
NCTPS Stage II unit II (1 X 600
1163.00
MW)
128

ETPS Annexure
SEZ at Kattupalli (2 X 800 MW)
Bhavani Kattalai Barrage II (2 X 15
MW)
Bhavani Kattalai Barrage III (1 x 30
MW)
Bhavani Barrage I SHEP (1 x 10
MW)
Bhavani Barrage II SHEP (1 x 10
MW)
Periyar Vaigai SHEP I (2 x 2 MW)
Periyar Vaigai SHEP II (2 x1.25 MW)
Periyar Vaigai SHEP III (2 x 2 MW)
Periyar Vaigai SHEP IV (2 x 1.25 MW)
Renovation & Modernization
TTPS
MTPS
Periyar hydel generation
Total generation
Transmission
Distribution
Total
6.2.2.6

7.17
57.26

28.00
804.93
4.86

63.29

4.22

8801.00

25.22
24.98
3.30
7.52
4.27
6.58

2289.59
1720.72
771.59
4781.90

142.02
43.70
57.10
5753.57
1600.00
1461.43
8815.00

100.87
63.70
8965.57
1760.00
1692.85
12418.42

According to TNEB, the projects, (except, the project at ETPS

(Annexure) and SEZ at Kattupalli) are scheduled to be commissioned
during the control period.

6.2.2.7

Regulation 6 (7) (i) (a) of the TNERC Tariff Regulations, 2005 specifies
the following:
A generation company or a licensee may make an application as per
Appendix I to these Regulations, for determination of provisional tariff
in advance of the anticipated date of completion of the project, based
on the capital expenditure actually incurred upto the date of making of
the application or a date prior to making of the application, duly audited
and certified by the statutory auditors, and the provisional tariff shall be
charged from the date of commercial operation of the respective units
of the generation station or the line or sub-station of the transmission
system.

129

6.2.2.8

The TNEB had neither sought prior approval of their capital investment
plan nor applied for determination of tariff in advance for the above
generating stations. However, the Commission is required to determine
tariff for the new generating stations under Regulation 43 and hence,
the capital costs of these projects are also required to be ascertained
by the Commission.

6.2.2.9

The capital cost of the above projects as furnished in the capital

investment plan are as below:
Table 86 Capital Cost of the New Generation Projects

Sl. No

Projects

Estimated capital cost

Cost per MW

(Rs in Crores)

(Rs.in Crores)

MTPS Stage III (1 X 600 MW)

3552.13

5.92

NCTPS Stage II unit I (1 X 600 MW)

3097.09

5.16

NCTPS Stage II unit II (1 X 600 MW)

2718.75

4.53

Bhavani Kattalai Barrage II (2 X 15 MW)

400.59

13.35

Bhavani Kattalai Barrage III (1 x 30

396.60

13.22

MW)
6

Bhavani Barrage I SHEP (1 x 10 MW)

141.380

14.14

Bhavani Barrage II SHEP (1 x 10 MW)

151.73

15.17

Periyar Vaigai SHEP I (2 x 2 MW)

49.19

12.30

Periyar Vaigai SHEP II (2 x1.25 MW)

40.07

16.028

10

Periyar Vaigai SHEP III (2 x 2 MW)

58.84

14.71

11

Periyar Vaigai SHEP IV (2 x 1.25 MW)

46.66

18.664

6.2.2.10 The estimated per MW capital of hydro generating plant is very high.
The original cost of the small hydro projects per MW approved by the
CEA was in the range of Rs. 3.30 to Rs.6.00 Crores. The TNEB has
explained that the increase in cost is due to escalation, tender
premium and variations in technical parameters of Weir and power
house.
6.2.2.11 The Commission in the Power Procurement from New and Renewable
Sources of Energy Regulations, 2008.specifies the following :

130

The Commission shall by a general or specific order, determine the tariff for
the purchase of power from each kind of new and renewable sources based
generators by the distribution licensee. In case of small hydro projects with a
capacity of more than 5 MW but not exceeding 25 MW capacities
Commission decides the tariff on case to case basis.

6.2.2.12 The Periyar Vaigai small hydro electric projects under execution by
TNEB are of capacity of less than 5 MW.
6.2.2.13 The CERC in CERC (Terms and conditions for tariff determination for
Renewable energy sources) Regulations 2009 has

specified the

normative capital cost of the small hydro projects for the control period
2009-10 as below:
Table 87 CERCs Normative Capital Cost of the Small Hydro Projects

Capacity
Base capital cost (Rs
in lakhs / MW)

Below 5 MW

5 MW and above

550.00

500.00

6.2.2.14 The capital cost for the subsequent year computed as per the capital
cost indexation mechanism detailed in the CERCs Regulation is
Rs.561.204 lakhs / MW and Rs. 509.79 lakhs / MW for the project
below 5 MW and above 5 MW respectively.
6.2.2.15 The capital investment plan requires further analysis and explanation
from TNEB before according approval of cost proposed by TNEB.
Pending approval, the provisional cost is considered as below:
(1)

Thermal stations - MTPS stage III Rs.5.92 Crores / MW (with

cooling tower) and NCTPS stage II Rs.4.85 Crores / MW
(without cooling tower)

(2)

Hydro station

- upto 5 MW Rs.561.204 lakhs /

MW and

Above 5 MW Rs.509.796 lakhs / MW

(3)

The capitalization of transmission and distribution are projected

as per the capital investment plan

(4)

The assets like 230 KV SS, 110 KV SS and EHT lines established
to evacuate the power from private wind mills are held as wind
131

mill assets, are allocated to transmission. The expenditures on

EHT sub-station proposed by WEDC to evacuate wind power
have also been projected as transmission asset.
(5)

The balance in work-in-progress at the end of 2008-09 and the

capital expenditure during 2009-10 have also been considered to
arrive at the gross fixed assets for the control period.

6.2.2.16 The TNEB in the statement showing gross fixed assets and depreciation
furnished with letter dated 18-04-2010, proposed the following addition
to fixed assets of the existing generating stations during the control
period:
Table 88 Addition to Fixed Assets by TNEB to the existing generating stations

(Rs.in Crores)
Sl. No
1
2
3
4
5
6
7
8
9
10
11

6.2.2.17

Stations
ETPS
NCTPS
MTPS
TTPS
BBGTPS
Kovilkalappal
Valuthur
Hydro Generating
Erode
Hydro Generating
Kadamparai
Hydro Generating
Kundah
Hydro Generating
Tirunelveli
Total

stations under

2010-11
31.50
27.55
5.63
58.87
0.41
63.63
118.11
6.36

2011-12
32.57
27.94
6.15
135.53
0.42
73.09
140.40
6.42

2012-13
33.67
28.31
6.18
105.00
0.42
83.94
166.90
6.48

stations under

1.69

1.70

1.71

stations under

16.37

16.65

16.95

stations under

33.63

37.50

41.84

363.75

478.37

491.4

Perusal of previous annual statement of accounts of TNEB shows that

such additions happen year on year with un-capitalized expenditure on
work-in-progress (WIP) at the end of each year. Any addition to
existing asset will have its impact on tariff.

6.2.2.18 Under Regulation 19 (1) (vi), the capitalization of additional work can
be allowed only if such works have become necessary for efficient and
successful operation of the generating station.
6.2.2.19 The above additions and also the proposed expenditure on renovation
and modernization have not been considered as the necessity for the
132

expenditure has not been explained in the petition. The TNEB shall
furnish a separate proposal for approval of the additional capitalization
with details of assets to be replaced.
6.2.2.20 The value of gross fixed assets as per the audited accounts for the
year 2007-08 and the preliminary accounts for the year 2008-09 have
been considered for projecting the fixed asset value for the control
period duly taking into account the work in progress as on 31-03-2009,
capital investments plan and capital expenditure plan furnished in the
capital investment plan for 2010-11, 2011-12 and 2012-13.
6.2.2.21 The capital expenditure furnished for ETPS annex and SEZ at
Kattupalli have not been considered as the projects have not been
projected as capacity addition.

6.2.3 The Commission fixes the Gross Fixed Assets (GFA) for the control period
as below:
Table 89 Gross Fixed Assets (GFA) fixed by the Commission

(Rs.in Crores)
Sl. No Particulars

2009-10

2010-11

2011-12

2012-13

Value of Asset
1 at the beginning

25016.17 27655.96 30018.51 43253.69

Additions
2 during the year

2639.79

2362.55 13235.18

1863.19

Asset at the
3 end of the year
4 WIP at the end

27655.96 30018.51 43253.69 45116.88

4782.77

2362.55

2791.09

4978.62

6.2.4 The GFA at the end of each year of the control period is allocated to
different functions as below:

133

Table 90 Allocation of Gross Fixed Assets to different functions of TNEB

(Rs.in Crores)
Functions

6.3.

2010-11

2011-12

2012-13

Generation
ETPS

961.60

961.60

961.60

NCTPS

1969.76

1969.76

1969.76

MTPS

982.31

982.31

982.31

TTPS

1799.23

1799.23

1799.23

NCTPS II

6054.35

6054.35

MTPS II

3697.81

3697.81

Total Thermal

5712.90
548.58

15465.06
548.58

15465.06
548.58

346.14
373.11
798.98

346.14
373.11
798.98

346.14
373.11
798.98

2066.81
719.65
348.14
908.35
317.76

2066.81
1123.24
348.14
908.35
341.13

2066.81
1123.24
348.14
908.35
341.13

2293.90
10073.61
145.31
90.32

2720.86
20252.73
145.31
90.32

2720.86
20252.73
145.31
90.32

235.63

235.63

235.63

1
2
3
4
II
1
2
3
4
III
V
1
2
IV

BBGTPS
Kuttalam
Kovilkalappal
Valuthur
Total Gas
Erode
Kadamparai
Kundah
Tirunelveli
Total Hydro
Total Gen Assets
Tirunelveli - Wind
Udumalpet - Wind
Total Wind

Total Generation

10325.69

20504.81

20504.81

VI

Transmission

8520.58

10241.30

11012.89

VII

Distribution

11188.69

12524.02

13615.62

VIII

Grand Total

30018.51

43253.68

45116.87

Interest on Loan Capital:

6.3.1 Regulation 23 (interest and Finance charges on loan capital) in chapter III
of the Tariff Regulation specifies the following:
(a)

Interest on loan capital shall be computed loan wise on the loan

arrived at in the manner set out in Regulation 21.

134

6.3.2 Regulation 21 specifies that where equity employed is more than 30% (of
capital employed) the amount of equity shall be limited to 30% and the
balance amount shall be considered as loans, advanced at the weighted
average rates of interest and for weighted tenure of the long term debt
component of the investment.
6.3.3 As the equity is less than 30%, carrying forward of additional equity to loan
account does not arise.
6.3.4 The TNEB furnished the calculation of loan wise interest statement in
Form 16 of ARR.
6.3.5 The loan wise interest as claimed by TNEB is as below:

(Rs.in Crores)

Table 91 Loan wise interest claimed by TNEB

2010-11

2011-12

2012-13

Outstandi
ng at the
end of the
year

Interest
payable

Outstandi
ng at the
end of the
year

Interest
payable

Outstandi
ng at the
end of the
year

Interest
payable

3294.68

362.42

4061.09

446.72

4991.09

549.02

LIC
REC &
REC/Bank

1277.16

140.49

1218.80

134.07

1601.30

176.14

5989.32

658.83

7580.67

833.87

8310.39

914.14

CIA

120.45

13.25

120.45

13.25

120.45

13.25

PFC

3118.60

343.05

4018.10

441.99

3604.10

396.45

Institutions

Public TNEB
Bonds

0.00

PFC/ADB

0.00

0.00

7600.41

836.04

8861.73

974.79

11288.06

1241.69

NABARD

43.50

4.78

10.30

1.13

-21.32

-2.34

TNPFC Lease

0.00

0.00

0.00

0.00

0.00

0.00

MTL

4267.06

469.38

4873.72

536.11

5845.98

643.06

ICICI/STL

1000.00

113.30

1000.00

113.30

1000.00

113.30

APDRP

205.25

22.58

189.44

20.84

171.27

1.74

PMGY

19.28

2.12

17.56

1.93

15.92

0.19

1872.17

205.94

2437.41

268.11

2881.77

316.99

42.33

4.66

42.33

4.66

74.13

8.15

TNPFC

HUDCO
RGGY
Security Deposit

236.78

246.25

256.10

Interest on GPF
& Hydro
Balancing fund

116.05

120.69

125.52

135

407.84

Other interest
Total
Less:
Capitalizations
Net Interest &
Finance charges

28850.21

3937.51

424.16
34431.60

472.50
28850.21

3465.01

4581.87

441.12
39883.14

5194.52

549.82
34431.60

4032.05

623.34
39883.14

4571.18

6.3.6 On the direction of the Commission in letter dated 22-01-2010 and 19-022010, the TNEB furnished the statements showing the function wise loan
allocation in letter dated 24-02-2010 for transmission and in letter dated
18-04-2010 for generation.
6.3.7 Raising of debts through TNEB bonds and loans from financial institutions,
their servicing, accounting etc are done centrally at headquarters of
TNEB.
6.3.8 The TNEB has allocated the loans based on the value of GFA. However,
the loans from PMGVY and RGGVY that are exclusively for distribution
have been allocated fully to distribution. REC is financing NCTPS
expansion (Stage II) also and hence, loan from REC is allocated to both
generation and distribution. The loans from APDRP that are both for
Transmission and Distribution have been allocated to these functions.
6.3.9 The TNEB is borrowing funds to meet the repayment obligations, payment
of interest on borrowings, capital expenditure and also to meet the
revenue expenditure in view of consistent revenue deficit for the past
seven years.
6.3.10 In the ARR the TNEB has adopted a weighted average interest rate of
13.02% for TNEB bonds and 9.05% for loan from LIC. However, the
outstanding TNEB bonds carry interest rates ranging from 7% to 11.60%
as per the Annual Statement of Accounts 2007-08 and 2008-09. The loans
from LIC carry interest at 11%, 8.8%, 9.5% and 13%.
6.3.11 The Commission in letter dated 19-02-2010, directed the TNEB to furnish
the schedule of repayment of loan installments and payment of interest
with quantum for the existing loans and schedule of drawal, interest rate,

136

moratorium period and tenure of loan for the proposed borrowings, so as

to check the proposed interest expenditure.
6.3.12 The TNEB in letter dated 07-04-2010, furnished the redemption schedule
for TNEB bonds, repayment schedule for PFC and REC loans, schedule
of repayment of principal and payment of interest for LIC loans, TNPFC
and other loans. All these details were furnished only for existing loans.
The schedule of drawal, etc for the proposed borrowings were not
furnished.
6.3.13 The projected borrowings and interest rates were discussed with the
officials of TNEB and the details were obtained.
6.3.14 The outstanding loan and interest thereon has been allocated on net asset
basis after check. The outstanding loan at the end of the financial year
2009-10 furnished by the TNEB was revised taking into account, the
actual borrowing and repayment during the year 2009-10.
6.3.15 The TNEB has claimed Rs.236.78 Crores, Rs. 246.25 and Rs.256.10
Crores as Interest on security deposit for the control period. The adequacy
of security deposits from consumers who are billed monthly is reviewed
every year and that of consumers who are billed bi-monthly is reviewed
once in two years. The TNEB in letter dated 07-04-2010 have projected
Rs.510.47 Crores, Rs.547.58 Crores and 594.92 Crores for control
periods as addition to security deposit. The review of past additions to
security deposit shows that the projections are not correct and also the
interest on security deposit based on such addition is much higher. The
amount claimed by TNEB is accepted and this will be reviewed at the time
of truing up.
6.3.16 The TNEB has claimed Rs.116.05 Crores, 120.69 Crores and 125.52
Crores towards interest on GPF and Hydro balancing fund for the control
period. The actual interest on GPF for the year 2007-08 was Rs.57.25
Crores and for 2008-09 was Rs.60.46 Crores. Considering the salary hike
on

implementation

of

wage

revision

settlement,

the

mandatory

subscription to GPF will get increased and hence the interest on GPF has

137

been fixed at Rs.70 Crores, 71 Crores and 73 Crores for the control
period.
6.3.17 The TNEB has claimed Rs.407.84 Crores, Rs.424.16 Crores and
Rs.441.12 Crores as other interest for the control period. But, as per the
annual statement of accounts for 2008-09, the other unclassified interest
and cost of raising finance, bank charges, penal interest for E.Tax and
guarantee commission to State Government were Rs.146.82 Crores.
Hence, other interest charges have been projected with 4% increase on
the actuals for the year 2008-09.
6.3.18 The claim of interest on hydro balancing fund is not considered as the
same cannot be passed on to the consumer.
6.3.19 The TNEB has not furnished the details for computing Interest during
construction, revenue expenditure incurred in project consecration. Hence,
the capitalization of interest as furnished by TNEB has been accepted and
net interest allocated function wise.
6.3.20 The loan wise interest admitted by the Commission is as below:
(Rs.in Crores)

Table 92 Loan wise interest admitted by TNERC

2010-11
Institutions

Public TNEB
Bonds

Outstandi
ng at the
end of the
year

2011-12

Interest
payable

Outstandi
ng at the
end of the
year

2012-13

Interest
payable

Outstandi
ng at the
end of the
year

Interest
payable

3834.48

312.33

4600.89

380.41

5530.89

449.10

858.51

97.34

775.89

90.81

682.30

81.83

5770.67

658.83

7148.52

833.87

8750.87

914.14

2936.22

343.05

3918.52

441.99

3664.77

396.45

6482.91

556.71

7454.69

655.07

7976.69

725.27

42.51

5.96

20.70

3.32

8.48

1.53

MTL

8636.79

803.53

8151.37

839.41

8731.78

844.15

ICICI/STL

2000.00

334.15

2000.00

170.00

2000.00

170.00

APDRP

330.35

21.32

314.55

19.74

298.75

18.16

PMGY

19.74

2.45

18.31

2.28

16.88

2.11

LIC
REC &
REC/Bank
CIA
PFC
PFC/ADB
TNPFC
NABARD
TNPFC Lease

138

1610.23

145.94

2144.38

196.45

2521.32

244.12

RGGY
Interest on
Security Deposit

13.42

1.41

13.42

1.41

13.42

1.41

236.78

246.25

256.10

Interest on GPF

70.00

71.00

73.00

Other interest

158.80

165.15

171.76

32535.83

3748.60

36561.24

4117.16

40196.15

4349.13

HUDCO

Total
Less:
Capitalizations
Net Interest &
Finance charges

472.50
32535.83

3276.11

549.82
36561.24

623.34

3567.34

40196.15

3725.79

6.3.21 The loan wise interest admitted by the Commission is allocated to the
various functions as below:
Table 93 Function wise Allocation of Interest on Loan (Rs
Sl.No

1
2
3
4
5
6

ETPS
NCTPS
MTPS
TTPS
NCTPS II
MTPS II

2010-11
Net Assets Interest

2011-12
Net
Interest
Assets
464.28
64.99
593.87
83.13
257.61
36.06
634.82
88.86
5926.12
216.18
3611.04
182.30

2012-13
Net
Interest
Assets
432.45
61.84
528.67
75.60
225.10
32.19
575.27
82.26
5725.72
216.18
3488.64
182.0

496.11
659.07
290.12
694.37

78.41
104.17
45.85
109.75

1
2
3
4

Total Thermal
BBGTPS
Kuttalam
Kovilkalappal
Valuthur

2139.67
127.36
235.55
203.48
647.86

338.18
20.13
37.23
32.16
102.39

11487.74
109.20
224.09
191.13
621.41

671.52
15.29
31.37
26.75
86.99

10975.85
91.04
212.63
178.78
594.96

650.37
13.02
30.41
25.57
85.08

1
2
3
4

Total Gas
Erode
Kadamparai
Kundah
Tirunelveli

1214.25
502.19
193.04
684.37
223.51

191.91
86.23
30.51
108.16
42.13

1145.83
870.77
181.52
654.30
235.60

160.39
141.79
25.41
91.59
34.13

1077.41
833.59
170.00
624.23
224.31

154.07
119.20
24.31
89.27
32.08

Total Hydro
Tirunelveli - Wind
Udumalpet Wind
Total Wind
Total Generation
Transmission
Distribution
Grand Total

1603.11
96.23
77.99

267.03
15.21
12.33

1942.19
91.42
75.00

292.92
12.80
10.50

1852.13
86.61
72.01

264.86
12.39
10.30

174.22
5131.25
5803.10
8051.32
18985.67

27.54
824.66
1023.39
1428.07
3276.11

166.42
14742.18
7212.89
8993.88
30948.95

23.30
1148.13
1094.49
1324.72
3567.34

158.62
14064.01
7632.53
9651.96
31348.50

22.68
1091.98
1158.59
1475.21
3725.79

II

III
1
2
IV
V
VI
VII
VIII

Station

in Crores)

139

6.4

Return on Equity (RoE)

6.4.1 Regulation 22 of Tariff Regulation specifies the following:

Return on equity shall be computed on the equity base determined in
accordance with Regulation 21 @14% per annum. The return shall be
allowed post tax.
6.4.2 The TNEB in the petition claimed reasonable return (3%) on the capital
base as per the Electricity (Supply) Annual Accounts Rule 1985. The
Commission directed the TNEB that the return be calculated on the equity
base as per the provision in the Tariff Regulations.
6.4.3 The TNEB in letter dated 23-02-2010 submitted following:
The return on capital base is calculated in statement 8 of the Balance
Sheet based on the format prescribed in the Electricity (Supply) Annual
Accounts Rules 1985. As the equity share capital available in the accounts
is less, the return on capital base has been adopted. However, the return
may be calculated on the equity based at 14% per annum as per the tariff
Regulation amendment dated 09-08-2007.
Table 94 Equity share capital of TNEB

Equity share capital

2007-08

2008-09

(Rs.In

(Rs.in

Crores)

Crores)
1200

II Supplemental addition
Total
14% return on equity

2050
350.50

1200

2370.50

168

331.87

6.4.4 The Commission in letter dated 13-03-2010, directed the TNEB to furnish
the actual equity received in 2009-10 and the projection for 2010-11 to
2012-13 based on the commitment, if any, from Government.
6.4.5 The TNEB in letter dated 05-04-2010 submitted the following:
(1) The actual equity sanctioned by Government in 2009-10 was Rs.100 Crores.

140

(2) In the Budget proposal Rs.1200 Crores has been proposed for each year
from 2010-11 to 2012-13.
(3) There is no commitment from Government on the sanctioning of above
equity.

6.4.6 As the Government of Tamil Nadu has

contributed equity of Rs.100

Crores in 2009-10, the addition to equity in the control period has been
projected at the rate of Rs.100/- Crores each year.
6.4.7 The equity was allocated to each function based on gross fixed assets and
RoE at 14% arrived at as below:
Table 95 Allocation of Equity to different functions of TNEB

(Rs. in Crores)
Sl.No

Stations /
Functions

2010-11

2011-12

Equity

RoE
14%

2012-13

Equity

RoE
14%

Equity

RoE
14%

1
2
3
4
5
6

ETPS
NCTPS
MTPS
TTPS
NCTPS II
MTPS II

82.34
168.67
84.12
154.07

11.53
23.61
11.78
21.57

59.37
121.61
60.65
111.09
373.80
228.30

8.31
17.03
8.49
15.55
52.33
31.96

59.05
120.96
60.32
110.49
371.78
227.07

8.27
16.93
8.44
15.47
52.05
31.79

Total Thermal

489.20

68.49

954.82

133.67

949.67

132.95

1
2
3
4

BBGTPS
Kuttalam
Kovilkalappal
Valuthur

46.98
29.64
31.95
68.42

6.58
4.15
4.47
9.58

33.87
21.37
23.04
49.33

4.74
2.99
3.23
6.91

33.69
21.26
22.91
49.06

4.72
2.98
3.21
6.87

II

Total Gas

176.98

24.78

127.61

17.86

126.92

17.77

1
2
3
4

Erode
Kadamparai
Kundah
Tirunelveli

61.62
29.81
77.78
27.21

8.63
4.17
10.89
3.81

69.35
21.49
56.08
21.06

9.71
3.01
7.85
2.95

68.98
21.38
55.78
20.95

9.66
2.99
7.81
2.93

III

Total Hydro

196.43

27.50

167.99

23.52

167.08

23.39

1
2

Tirunelveli - Wind
Udumalpet - Wind

12.44
7.73

1.74
1.08

8.97
5.58

1.26
0.78

8.92
5.55

1.25
0.78

IV

Total Wind

20.18

2.82

14.55

2.04

14.47

2.03

141

Total Generation

882.79

123.59

1264.97

177.09

1258.14

176.14

VI

Transmission

729.62

102.15

632.30

88.52

676.27

94.68

VII
VIII

Distribution
Grand Total

958.09

134.13

773.23

108.26

836.09

117.05

2570.50

359.87

2670.50

373.87

2770.50

387.87

6.5

Depreciation

6.5.1 Regulation 24 of the TNERC Tariff Regulation 2005, specifies the

following:
a. The value base for the purpose of depreciation shall be historical
cost of the asset.
b. The depreciation shall be calculated at the rates as per the
Annexure to these Regulations.
c. The residual value of assets shall be considered as 10% and
depreciation shall be allowed up to maximum of 90% of the
estimated cost of the Asset.
d. Land is not a depreciable asset and its cost shall be excluded from
the capital cost while computing 90% of the historical cost of the
asset.
e. The

historical

cost

of

the

asset

shall

include

additional

capitalization.
f. Depreciation shall be chargeable from the first year of operation. In
case of operation of the asset for part of the year, depreciation shall
be charged on pro-rata basis.
g. After the assets are fully depreciated the benefit of reduced tariff
shall be made available to the consumer.
6.5.2 The TNEB in their petition have filed Form 19 containing assets and the
depreciation for each year. They have submit the following:
(1)

The rates of depreciation as per the TNERCs Tariff Regulation

have been adopted.

142

(2)

100% value of assets of which 90% value has

depreciated has

already been

not been considered for calculation of

depreciation.
6.5.3 The TNEB claimed the following depreciation for the control period:
Table 96 Depreciation claimed by TNEB

(Rs.in Crores)
Sl. No

Name of the asset

2010-11

2011-12

2012-13

(1)

(2)

(3)

(4)

(5)

Buildings

23.24

24.65

26.16

Hydraulic works

21.37

22.88

24.50

Other civil works

16.80

17.80

18.86

Plant & machinery

530.28

568.92

610.38

Lines & cables Network

444.46

499.44

561.22

Vehicles

1.76

1.85

1.94

Furniture & Fixtures

2.13

2.22

2.32

Office equipment

7.49

8.82

10.38

10

capital spare
Capital Expenditure result in asset not
belonging to Board

38.85

43.23

48.10

13

Spare units
Assets taken over from licensees
pending finalization

14

Leased assets

15

Capital Exp in progress

1086.38

1189.81

1303.86

Land and Land rights

11
12

Total

6.5.4 The TNEB has not filed the details in the specified format for computation
of weighted average rate of depreciation.
6.5.5 The Commission computed the depreciation taking the following into
account:

143

(a) The weighted average rate of depreciation computed on the gross

value of assets at the beginning of the year excluding the cost of
land and 100% value of assets which were depreciated upto 90%
of the book value is 3.31% as per the Annual Statement of
Accounts of the year 2008-09.
(b) The weighted average rate of depreciation excluding the cost of
land is 3.56%.
(c) The Commission fixes the depreciation for the control period at the
rate of 3.31% on the value of existing assets at the beginning of the
year.
(d) Proportionate depreciation has been fixed at 3.56% for the assets
added / proposed to be commissioned during the control period.
(e) The depreciation for the existing assets has been allowed at 3.31%
on Gross value and at 3.56% on new assets and allocates the to
various functions as below:
Table 97 Allocation of depreciation to different functions of TNEB

(Rs.in Crores)
Stations
1
2
3
4
5
6
I
1
2
3
4
II
1
2
3
4
III

IV
1

ETPS
NCTPS
MTPS
TTPS
NCTPS II
MTPS II
Total Thermal
BBGTPS
Kuttalam
Kovilkalappal
Valuthur
Total Gas
Erode
Kadamparai
Kundah
Tirunelveli
Total Hydro
Total on Generation
Assets
Tirunelveli - Wind

2010-11
31.83
65.20
32.51
59.55

2011-12
31.83
65.20
32.51
59.55
128.23
86.77

2012-13
31.83
65.20
32.51
59.55
200.40
122.40

189.10
18.16
11.46
12.35
26.45

404.10
18.16
11.46
12.35
26.45

511.89
18.16
11.46
12.35
26.45

68.41
22.41
11.52
30.07
9.69

68.41
35.01
11.52
30.07
11.28

68.41
37.18
11.52
30.07
11.29

73.69

87.88

90.06

331.20
4.81

560.39
4.81

670.37
4.81

144

6.6

2
V

Udumalpet - Wind
Total Wind

2.99

2.99

2.99

7.80

7.80

7.80

VI

Total Generation

339.00

568.73

678.71

VII

Transmission

267.57

310.93

351.95

VIII

Distribution

349.16

392.77

433.52

IX

Grand Total

955.72

1271.89

1463.64

Operation and Maintenance Expenses

6.6.1 The

following

expenditures

are

categorized

as

Operation

and

Maintenance Expenses (O & M Expenses).

Repair and Maintenance
Employees cost
Administration and General Expenses
6.6.2 The TNEB has claimed the following O & M Expenses:
Table 98 O&M expenses claimed by TNEB

(Rs.in Crores)
Sl.No
1
2
3
4

Details
Net
Repairs
&
Maintenance Expenses
Net Employee Cost
Net Admn & General
Expenses
Total

2010-11
326.57

2011-12
339.63

2012-13
353.22

2908.68
228.40

3025.22
237.53

3146.02
247.04

3463.65

3602.18

3746.28

6.6.3 Subsequently, based on the comments from the Commission, the TNEB
revised the claim for O & M Expenses as below:
Table 99 Revised O&M expenses claimed by TNEB

(Rs.in Crores)
Sl.No
1
2
3
4

Details
Net
Repairs
&
Maintenance Expenses
Net Employee Cost
Net Admn & General
Expenses
Total

2010-11
302.12

2011-12
314.20

2012-13
326.77

2386.46
302.45

2481.94
314.54

2581.21
327.13

2991.03

3110.68

3235.11

145

6.6.4 As per Regulation 25 of the TNERC Tariff Regulations, the Operation and
Maintenance Expenses (O & M Expenses) shall be derived on the basis of
average of actual O & M expenses for the past five years based on the
audited Annual Accounts excluding abnormal O & M expenses, if any,
after prudence check by the Commission.
6.6.5 Various components of O & M expenses were analyzed and revised on
the following lines.

6.7 Repair & Maintenance

6.7.1 There were abnormal expenditures on repairs to plant and machineries,
buildings and other civil works during one or two years among the
previous five years taken up for average. In ETPS and NCTPS repairs to
plant and machinery during 2007-08 and 2008-09 were more than 200%
than the expenditure during the earlier years.
6.7.2 There were abnormal repair and maintenance expenditure to buildings in
Kuttalam GTPS, NCTPS, Erode, Tirunelveli and Kadamparai.
6.7.3 The TNEB in letter dated 07-04-2010, have submitted that the increased
expenditure in MTPS was due to capital overhaul work of unit II carried
out after 7 years. In TTPS Rs.20/- Crores was spent on painting, conveyor
system, boiler erection, etc.,
6.7.4 The average expenditure on Repairs and maintenance for the purpose of
projection arrived at by TNEB was revised excluding the actual abnormal
expenditures.
6.7.5 The net repair and maintenance expenditure claimed by TNEB and
admitted by the Commission are as below:
Table 100 Repairs and maintenance expenditures admitted by TNERC

2010-11
and
302.11

Repairs
Maintenance
Expenses (Rs.in
Crores)

Claimed by TNEB
2011-12
2012-13
314.20
326.77

Admitted by TNERC
2010-11
2011-12
237.67
247.23

2012-13
257.12

146

6.8

Employee Cost

6.8.1 The TNEB submitted the following projection in their petition.

Table 101 Projection of employee cost by TNEB

(Rs.in Crores)
S.
No.

Details

Salary

Overtime wages

Dearness Allowance

4
5

Average
of
previous
5 years

Current
Year
2009-10

Control Period
2010-11

2011-12

2012-13

742.32

943.49

1075.58

1118.60

1163.34

12.83

19.35

20.12

20.93

21.77

379.65

528.47

602.46

626.55

651.62

Other Allowances

78.63

70.77

73.60

76.54

79.61

Bonus & Ex-gratia

56.02

61.56

64.02

66.58

69.25

1269.45

1623.64

1835.78

1909.21

1985.58

Total (1 to 5)
6

Medical expenses reimbursement

4.60

3.31

3.44

3.58

3.72

Leave Travel concession

1.01

1.45

1.51

1.57

1.63

Earned Leave encashment

107.53

125.15

130.16

135.36

140.78

Terminal benefits

756.46

1061.38

1209.98

1258.37

1308.71

10

Staff welfare expenses & Board's

Contribution to CPS

7.87

14.42

15.00

15.60

16.22

Payment under workmen's

compensation Act

0.09

0.47

0.49

0.51

0.53

11

Commissioning/ Golden Jubilee

incentive

4.49

12

Grand Total
Less: Capitalization

13

Net Expenses

2151.50

2829.82

3196.35

3324.20

3457.17

200.20

249.54

287.67

299.18

311.15

1951.31

2580.28

2908.68

3025.02

3146.02

6.8.2 The following discrepancies were found on scrutiny of TNEBs claim

6.8.2.1

Salary for 2010-11 was escalated at 14% over the budgeted figure for
2009-10 and for further period, projection was made with 4% increase.

6.8.2.2

Dearness allowance was claimed at the rate of 56% uniformly for all
the years of the control period

6.8.2.3

The revision of pay ordered with effect from 01-12-2007 was not taken
into account.

147

6.8.3 The above deficiencies were pointed out to TNEB and the TNEB
submitted a revised statement as below:
Table 101 Revised projection of employee cost by TNEB

(Rs.in Crores)
S.
No.

Details

Salary

Overtime wages

Dearness Allowance

4
5

Current
Year

Average of
previous 5
years

Control Period

2009-10

2010-11

2011-12

2012-13

742.32

919.06

987.42

993.81

994.66

12.83

13.34

13.88

14.04

14.18

379.65

284.91

385.10

437.28

497.34

Other Allowances

78.63

81.77

85.04

85.18

85.34

Bonus & Ex-gratia

56.02

58.26

60.59

63.01

65.53

1269.45

1357.34

1532.03

1593.32

1657.05

Total (1 5)
6

Medical expenses
reimbursement

4.60

4.78

4.98

5.17

5.38

Leave Travel concession

1.01

1.05

1.09

1.13

1.18

Earned Leave
encashment

107.53

111.83

116.31

120.96

125.80

Terminal benefits

756.46

824.55

999.98

977.58

1016.68

7.87

8.19

8.52

8.86

9.21

0.09

0.09

0.10

0.10

0.11

4.49

2151.50

2307.84

2603.00

2707.13

2815.41

200.20

208.20

216.53

225.19

234.20

1951.31

2099.63

2386.46

2481.94

2581.21

10

Staff welfare expenses &

Board's Contribution to
CPS
Payment under
workmen's
compensation Act

11

Commissioning/ Golden
Jubilee incentive

12

Grand Total
Less: Capitalization

13

Net Expenses

(i) The details of employee cost subsequently submitted were also found
to be incorrect. The TNEB was therefore directed to furnish the No. of
employees in each pay band.
(ii) The employee cost has

been projected taking into account the

revision of pay ordered with effect from 01-12-2007, the number of

148

employees in each pay band, weightage and grade pay. The salary for
further period was projected with 3% increase.
(iii) The retirement (Pension) benefits have been projected considering the
pension revision order with effect from 01-01-2007.
(iv) Dearness allowance has been projected at the rate of 40% for 201011, 45% for 2011-12 and 50% for 2012-13.
(v) The employee cost arrived at by Commission is as below:
Table 102 Employee cost arrived by the Commission

(Rs.in Crores)
Particulars
1

Salary

2
3

Overtime Wages
Dearness
Allowance

Other Allowance

Bonus & Ex-gratia

Sub-Total 1

6.9

2009-10

2010-11

2011-12

2012-13

1386.67

1428.27

1471.12

1515.25

13.34

13.88

14.04

14.18

402.13

571.31

662.00

757.63

136.34

143.16

148.89

154.84

62.00

62.00

62.00

62.00

2000.48

2218.62

2358.05

2503.90

MRI

4.78

4.98

5.17

5.38

LTC

1.05

1.09

1.13

1.18

EL Encashment

143.24

148.47

154.93

161.13

Terminal Benefit

1314.97

1412.73

1538.41

1672.34

Welfare expenses
&CPF contribution

8.19

8.52

8.86

9.21

Compensation

0.09

0.10

0.10

0.11

Other Incentives

Sub-Total 2

1472.32

1575.89

1708.60

1849.35

Grand Total
Less:
Capitalization

3472.80

3794.51

4066.65

4353.25

208.20

216.53

225.19

234.20

Net Expenses

3264.60

3577.98

3841.46

4119.05

Administrative and General Expenses

6.9.1 The TNEB has projected 1% insurance on generation assets with the
increase of 4% over the average for past five years. This has

been

revised as 1% on the net value of the assets.

149

6.9.2 Abnormal expenditures on the heads legal / consultancy charges and

misc. expenses during the past period have been excluded to arrive at the
average for the purpose of projection for the control period.
6.9.3 The net administration and general expenses claimed by TNEB and
admitted by the Commission are as below:
Table 103 Net administration and general expenses admitted by TNERC

Claimed by TNEB

Admn.

Admitted by TNERC

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

302.45

314.54

327.13

252.80

257.82

272.15

and

General
Expenses (Rs.in
Crores)

6.9.4 Total O & M Expenses:

Table 104 O&M expenses admitted by TNERC

Sl.

Details

TNEB

TNERC

No
2010-11
1

Repairs

2011-12

2012-13

2010-11

2011-12

2012-13

314.21

326.77

237.67

247.23

257.12

2908.68

3025.02

3146.02

3577.98

3841.46

4119.05

302.45

314.54

327.13

252.80

257.82

272.15

3513.24

3653.77

3799.92

4068.45

4346.51

4648.32

and 302.11

Maintenance
2

Employee
Cost

Admn.
general
expenses
Total

6.10 Allocation of O & M Expenses

6.10.1 The O & M Expenses (excluding operating expenses of generating
stations) after capitalization are allocated among various functions as
detailed below:

150

Table 105 Allocation of O&M expenses by TNEB to different functions of TNEB

(Rs.in Crores)
Function

2010-11

2011-12

2012-13

R&M

Empl

A&G

Total

R&M

Empl

A&G

Total

R&M

Empl

A&G

Total

ETPS

45.09

57.67

10.20

112.96

46.89

61.90

10.38

119.17

48.77

66.37

10.58

125.72

NCTPS

69.98

48.53

13.02

131.53

72.78

52.09

13.22

138.09

75.69

55.86

13.42

144.97

MTPS

12.01

63.52

10.60

86.13

12.49

68.18

10.89

91.56

12.99

73.11

11.18

97.28

TTPS

23.77

75.83

20.32

119.92

24.72

81.39

20.80

126.91

25.71

87.27

21.31

134.29

Total

150.85

245.55

54.14

450.54

156.88

263.56

55.29

475.73

163.16

282.61

56.49

502.26

BBGTPS

1.99

5.53

2.67

10.19

2.07

5.98

2.71

10.76

2.15

6.45

2.75

11.35

Kuttalam

7.04

3.09

3.02

13.15

7.33

3.34

3.04

13.71

7.62

3.61

3.05

14.28

Kovilkalapp

3.57

3.51

2.76

9.84

3.71

3.79

2.78

10.28

3.86

4.09

2.79

10.74

Valuthur

1.41

4.72

7.18

13.31

1.47

5.10

7.18

13.75

1.52

5.51

7.19

14.22

Total Gas

14.01

16.85

15.63

46.49

14.58

18.21

15.71

48.50

15.15

19.66

15.78

50.56

Thermal

al

Erode

1.07

27.45

6.92

35.44

1.10

29.47

6.93

37.50

1.14

31.60

7.04

39.78

Kadamparai

1.83

22.64

5.75

30.22

1.98

24.29

5.98

32.25

2.06

26.06

6.22

34.34

Kundah

1.48

32.68

13.52

47.68

1.54

35.08

13.77

50.39

1.60

37.62

14.02

53.24

Tirunelveli

1.43

26.50

7.27

35.20

1.49

28.44

7.95

37.88

1.55

30.49

8.53

40.57

Total

5.81

109.27

33.46

148.54

6.11

117.28

34.63

158.02

6.35

125.77

35.81

167.93

0.39

7.80

0.18

8.37

0.40

8.37

0.19

8.96

0.42

8.98

0.20

9.60

0.16

3.15

0.09

3.40

0.16

3.38

0.10

3.64

0.17

3.63

0.10

3.90

Total Wind

0.55

10.95

0.27

11.77

0.56

11.75

0.29

12.6

0.59

12.61

0.30

13.50

Total

171.22

382.62

103.50

657.34

178.13

410.80

105.92

694.85

185.25

440.65

108.38

734.25

33.71

433.77

20.23

487.71

35.05

465.73

20.58

521.36

36.46

499.37

22.19

558.02

Distribution

32.74

2761.59

129.07

2923.40

34.05

2964.93

131.32

3130.30

35.41

3179.06

141.58

3356.05

Total

237.67

3577.98

252.8

4068.45

247.23

3841.45

257.82

4346.51

257.12

4119.08

272.15

4648.32

Hydro

WEDC
Tirunelveli
WEDC
UDP

Generation
Transmissio
n

6.11 Operating Expenses

6.11.1 The operating expenses like water charges for Thermal stations and the
cost of lubricants being accounted for along with the cost fuel by TNEB
are segregated and included in the O & M expenses.

151

6.11.2 The Commission fixes the O & M Expenses (including operating expenses
of generating stations) as detailed below:
Table 106 Allocation of O&M expenses by TNERC to different functions of TNEB

(Rs.in Crores)
Function

2010-11

2011-12

2012-13

Total

Operat

Total O &

Total

Operat

Total O &

Total

Operat

Total O &

(excludin

ing

(excludin

ing

(exclud

ing

Expen

Expense

Expen

Expenses

ing

Expen

Expense

operating

ses

operating

ses

operati

ses

expenses

expenses

ng

expens
es)

ETPS
NCTPS
MTPS
TTPS
Total
Thermal

112.96
131.53
86.13
119.92
450.54

16.98
8.17
0.79
6.28
32.22

129.94
139.7
86.92
126.2
482.76

119.17
138.09
91.56
126.91
475.73

17.15
8.26
0.8
6.34
32.55

136.32
146.35
92.36
133.25
508.28

125.72
144.97
97.28
134.29
502.26

17.32
8.34
0.81
6.4
32.87

143.04
153.31
98.09
140.69
535.13

BBGTPS
Kuttalam
Kovilkalappal
Valuthur
Total Gas

10.19
13.15
9.84
13.31
46.49

0.07
0.53
0.25
0.14
0.99

10.26
13.68
10.09
13.45
47.48

10.76
13.71
10.28
13.75
48.5

0.07
0.53
0.25
0.14
0.99

10.83
14.24
10.53
13.89
49.49

11.35
14.28
10.74
14.22
50.59

0.07
0.54
0.26
0.14
1.01

11.42
14.82
11.00
14.36
51.6

Erode
Kadamparai
Kundah
Tirunelveli
Total Hydro

35.44
30.22
47.68
35.2
148.54

35.44
30.22
47.68
35.2
148.54

37.5
32.25
50.39
37.88
158.02

37.5
32.25
50.39
37.88
158.02

39.78
34.34
53.24
40.57
167.93

39.78
34.34
53.24
40.57
167.93

WEDC
Tirunelveli
WEDC
UDP
Total Wind

8.37

8.37

8.96

8.96

9.6

9.6

3.4

3.4

3.64

3.64

3.9

3.9

11.77

11.77

12.6

12.6

13.5

13.5

Total
Generation
Transmission
Distribution
Total

657.34

33.21

690.55

694.85

33.54

728.39

734.25

33.88

768.13

33.21

487.71
2923.4
4101.66

521.36
3130.3
4346.51

33.54

521.36
3130.3
4380.05

558.02
3356.05
4648.32

33.88

558.02
3356.02
4682.17

6.12

487.71
2923.4
4068.45

O & M Expenses for new generating stations

6.12.1 Regulation 25 (4)and (6) of TNERC Tariff Regulations 2005 specifies the
following:

152

(4) In case of the thermal power Generating Stations, which have not
been in existence for a period of five years the operation and maintenance
expenses shall be fixed at 1.0% of the capital cost (as admitted by the
Commission) and shall be escalated at the rate of 4% per annum from the
subsequent year to arrive at base operation and maintenance expenses.
The base operation and maintenance expenses shall be further escalated
at the rate of 4% per annum to arrive at permissible operation and
maintenance expenses for the relevant year.
In case of the hydro electro Generating Stations, which have not been in existence
for a period of five years, the operation and maintenance expenses shall be fixed
at 1.0% of the capital cost as admitted by the Commission and shall be escalated
at the rate of 4% per annum from the subsequent year to arrive at base operation
and maintenance expenses. The base operation and maintenance expenses shall
be further escalated at the rate of 4% per annum to arrive at permissible
operation and maintenance expenses for the relevant year
6.12.2 The TNEB has stated that the following stations would be commissioned
during the control period.
6.12.3 The TNEB has not projected any O & M expenses for these stations.
6.12.4 The Commission fixes the O & M expenses to the new generating stations
as detailed below in accordance with the provisions in the Tariff
Regulations:
Table 107 O&M expenses admitted by TNERC to new generating stations
Project

MTPS stage II
NCTPS Expansion unit 1

CoD Month

Asset
Value
(Rs.in
Crores)

07/2011

3697.81

05/2011

3224.10

NCTPS Expansion unit 2

11/2011

2830.25

05/2011

175.26

Bavanikattalai B II
Bavanikattalai B III
06/2011

O & M Expenses (Rs.in Crores)

2010-11

2011-12

2012-13

24.64
26.87

36.97
32.25

9.43

28.30

1.45

1.75

1.31

1.75

175.26

153

Bavani B I
Bavani B II
Periyar Vaigai SHEP I

05/2011
12/2010

53.09
57.38

06/2010

25.27

Periyar Vaigai SHEP II

11/2010

15.79

04/2011

23.34

0.14
0.19

0.44
0.57
0.25

0.53
0.57
0.25

0.05

0.16

0.16

0.21

0.23

0.05

0.16

0.16

0.43

65.49

102.92

Periyar Vaigai SHEP III

Periyar Vaigai SHEP IV
11/2010

15.79

Total

6.13

Controllable and uncontrollable parameters

6.13.1 Regulation 3 (viii) of terms and conditions for determination of tariff for
transmission/distribution of electricity under MYT framework provides for
mechanism of pass through of all approved gains and losses on account
of uncontrollable factors. Items covered under uncontrollable costs are:a. Cost of fuel
b. Cost on account of inflation
c. Taxes and duties and
d. Variation in power purchase unit cost from base line level including
variation on account of hydro-thermal mix in case of force majeure
and adverse natural events like drought.
6.13.2 The licensee shall file application for revision on account of such variation
for Commissions consideration and orders. The Regulation also provides
for mechanism for sharing approved gains or losses arising out of
controllable factors. Regulation 3 (ix) envisages that the financial loss, if
any, due to failure to achieve the target for the controllable costs in any of
the years in the control period shall be borne by licensees and gains if any
shall be shared with beneficiaries at 50:50.
6.13.3 The Commission would like to clarify that all controllable factors which
includes O & M expenses could not be fixed for want of reliable data and
also due to the fact that the TNEB is in the process of unbundling and the
assets are to be transferred to the successor entities. In view of this, the
Commission has only estimated the O & M expenses and the parameters

154

for the purpose of this tariff order. All these parameters are provisional
and will therefore be required to be trued up based on audited figures and
prudency check.

The fixing of controllable parameters can be done only

when reliable data becomes available.

6.14

Interest on Borrowing for Working Capital

6.14.1 The TNEB has claimed interest on working capital on normative basis.
6.14.2 The TNEB has been borrowing (short term loan / cash credit/ overdraft) for
working capital and interest on such borrowing is included along with
interest on capital loan and allocated to all the functions.
6.14.3 The TNEB was directed to explain the reasons for claiming interest on
working capital in addition to projection of interest on short term loan.
6.14.4 The TNEB has submitted the following
Since the interest on borrowings for working capital is already included
the claim on normative basis is withdrawn
6.14.5 Accordingly, interest on working capital is not allowed separately.
6.14.6 The Tariff Regulations 2005 and MYT regulations could not be fully
implemented for want of reliable data from TNEB. After the issue of the
Transfer Scheme and receipt of petition from the successor entities, these
issues will be reviewed and action taken accordingly.

6.15

Other Debits

6.15.1 The expenses like material cost variance, bad & doubtful debts, extra
ordinary debits, R & D expenses, etc., are accounted under this head.
6.15.2 The provision under the head hydro balancing fund is not considered by
the Commission as the Commission has projected the hydro generation at
the capacity availability factor of 25.00%. The changes in the generation
mix will be taken care of by increase / decrease in power purchase cost
and the addition / utilization of hydro balancing fund on actuals.
6.15.3 The capitalization of interest in other debits has been proportionately
reduced.

155

6.15.4 The other debits claimed by TNEB and admitted by the Commission is as
below:
Table 108 Other debits admitted by TNERC

(Rs.in Crores)
Sl.No

Particulars

TNEB
201011

TNERC
201112

201213

2010-11

201112

201213

Research & Development

expenses

0.02

0.02

0.02

0.02

0.02

0.02

Bad & Doubtful debts

written off

0.20

0.20

0.20

0.20

0.20

0.20

Miscellaneous losses and

written off/provided for

6.68

6.68

6.68

6.68

6.68

6.68

Material cost variance

22.33

22.33

22.33

22.33

22.33

22.33

Sundry expenses

0.01

0.01

0.01

0.01

0.01

0.01

Extra ordinary debits

0.02

0.02

0.02

0.02

0.02

0.02

Hydro Balancing Fund

129.22

129.22

129.22

Total

158.48

158.48

158.48

29.26

29.26

29.26

19.07

20.02

21.02

3.60

4.00

4.51

139.41

138.46

137.46

25.66

25.26

24.75

Less: Capitalization
Net expenses

6.15.5 Material cost variances and provision for miscellaneous loss have been
allocated to all the functions based on gross fixed assets and the
remaining expenses are allocated to distribution functions as detailed
below:
Table 109 Allocation of material cost variance to different functions of TNEB

(Rs.in Crores)
2010-11
Gross
Block
Other
(Closing)
Debits
961.60
0.82

2011-12
Gross
Block at
Other
the end
Debits
961.60
0.56

2012-13
Gross
Block at
Other
the end
Debits
961.60
0.53

Station
ETPS

NCTPS

1969.76

1.68

1969.76

1.15

1969.76

1.08

MTPS

982.31

0.84

982.31

0.57

982.31

0.54

TTPS

1799.23

1.54

1799.23

1.05

1799.23

0.99

NCTPS II

6054.35

3.54

6054.35

3.32

MTPS II

3697.81

2.16

3697.81

2.03

156

Total Thermal

5712.90

4.88

15465.06

9.03

15465.06

8.49

1
2
3
4

BBGTPS
Kuttalam
Kovilkalappal
Valuthur

548.58

0.47

548.58

0.32

548.58

0.30

346.14
373.11
798.98

0.30
0.32
0.68

346.14
373.11
798.98

0.20
0.22
0.47

346.14
373.11
798.98

0.19
0.20
0.44

II

Total Gas

2066.81

1.77

2066.81

1.21

2066.81

1.13

1
2
3
4

Erode
Kadamparai
Kundah
Tirunelveli

719.65
348.14
908.35
317.76

0.62
0.30
0.78
0.27

1123.24
348.14
908.35
341.13

0.66
0.20
0.53
0.20

1123.24
348.14
908.35
341.13

0.62
0.19
0.50
0.19

III

Total Hydro

2293.90

1.96

2720.86

1.59

2720.86

1.49

145.31

0.12

145.31

0.08

145.31

0.08

90.32

0.08

90.32

0.05

90.32

0.05

Tirunelveli Wind
Udumalpet Wind

Total Wind

235.63

0.20

235.63

0.13

235.63

0.13

10309.24

8.81

20488.36

11.96

20504.81

11.25

VI

Total
Generation

VII

Transmission

8520.58

7.28

10241.30

5.99

11012.89

6.04

VIII

Distribution

11188.69

9.56

12507.57

7.31

13599.17

7.46

IX

Grand Total

30018.51

25.66

43237.23

25.26

45116.87

24.75

6.16

Comparison of Expenses

6.16.1 The expenses excluding power purchase cost and fuel cost claimed in the
Tariff Petition is compared with the expenses admitted by the Commission
as below:

157

Table 110 Expenses admitted by TNERC

(Rs in Crores)
TNEB

Particulars
2010-11
Depreciation
Interest on Loan
Capital
Return on Equity
Net Repairs &
Maintenance
Employee Cost
Admn. and General
Expenses
Operating Expenses
Other debits
Total Expenses

2011-12

TNERC
2012-13

1086.36

1189.81

1303.86

3464.99
378.25

4032.05
412.23

4571.16
449.80

302.12

314.20

2386.46
302.45

2010-11

2011-12

2012-13

955.72

1271.89

1463.64

3276.11

3567.34

3725.79

359.87

373.87

387.87

326.77

237.67

247.23

257.12

2481.94
314.54

2581.21
327.13

3577.98
252.80

3841.46
257.82

4119.05
272.15

0
139.41

0
138.46

0
137.46

33.21
25.66

33.54
25.26

33.80
24.75

8060.04

8883.23

9697.39

8719.02

9618.41

10284.17

158

CHAPTER 7
GENERATION TARIFF
7.1

Regulation 36 (Components of Tariff) specifies the following

(1)

The tariff for sale of power by the Generating Companies shall be

of two parts namely the Fixed Charges (recovery of annual capacity
charges) and variable (energy) charges.

(2)

The Fixed (annual capacity) charges shall consist of the following

elements:

(3)
7.2

Interest on Loan Capital;

Depreciation

Return on Equity;

Operation and Maintenance expenses; and

Interest on Working Capital:

The energy (variable) charges shall cover fuel cost.

The TNEB in the tariff petition have computed the fuel cost for the
generating stations owned by them and included the fuel cost in the ARR
for determination of retail tariff.

7.3

Clause (vi) of Regulation 43 of the TNERC (Terms and conditions for

Determination of Tariff) Regulations, 2005 specifies the following:
vi. In respect of power generated in the station owned by the distribution
licensee and distributed by the licensee itself in his area of supply, the
generation tariff of the station shall be considered as the transfer price to
the distribution licensee which will be determined in the licensees tariff
petition itself.

7.4

Clause (3) of Regulation 6 of the Tariff Regulation specifies the following:

(3) The application for determination of tariff for the existing generating
station and transmission system shall be accompanied by information in
the respective formats appended to these Regulations duly furnishing the
figures for the previous year, current year and ensuing year.

159

7.5

The Commission directed the TNEB to furnish the information for

determination of generation tariff in the formats prescribed in the Tariff
Regulation. Accordingly, the TNEB has submitted the station wise
informations like interest on loan, O & M expenses, etc.

7.6

The Commission will determine a two part generation tariff as per

Regulations for each of the thermal generating station (both coal based
and gas based) as each station is a separate accounting unit. In respect of
hydel stations a single generation tariff for all the hydel stations under
each of the generation circle will be determined as separate accounts for
each of the hydro stations is not made available.

7.7

The two part generation tariff consist of fixed charges (recovery of annual
capacity) and variable (energy) charges

7.8

Once the unbundling takes place and transfer scheme is issued by the
Government of Tamil Nadu under section 131 of Electricity Act 2003, the
provisions of the transfer scheme will govern the future course of action.

7.9

Thermal generating stations

7.9.1 Determination of Fixed (annual capacity) charges:

7.9.1.1

Regulation 41 of TNERC Tariff (computation of capacity (fixed)

charges) specifies the following:
The total annual Fixed Charges of a Generating Company consist the
elements detailed in clause (2) of Regulation 36 shall be worked out on the
basis of the principles outlined in Chapter III and also in accordance with the
norms allowed in these Regulations.
The annual capacity charges recoverable by the Generating Company shall
be worked out by deducting other income as per Regulation 40 from the total
annual expenses.

7.9.1.2

The elements constituting fixed charges have been computed and

allocated to generating stations in the chapters as detailed below:
Table 111 Elements of fixed cost
Sl. No

Fixed Charges component

Reference
chapter / para

1
2

Depreciation
Interest on Loan Capital

6.5.5
6.3.21

to

160

3
4
7.9.1.3

6.4.7

Return on Equity
Operation & Maintenance Expenses

6.11.2

The fixed (annual capacity charges) claimed by TNEB and approved

the Commission are as below:
Table 112 Fixed cost admitted by TNERC for ETPS
(Rs. In Crores)
TNEB
Tariff Components

TNERC

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

Depreciation

39.19

42.92

47.03

31.83

31.83

31.83

Interest on Loan

80.57

95.58

105.50

78.41

64.99

61.84

Return on Equity

17.53

22.58

27.63

11.53

8.31

8.27

115.51

120.13

124.93

129.94

136.32

143.04

Other Debits

0.82

0.56

0.53

Less; Misc Income

9.15

9.15

9.15

243.38

232.86

236.36

O&M expenses

Total

252.80

281.21

305.09

Table 113 Fixed cost admitted by TNERC for TTPS

(Rs. In Crores)

TNEB
Tariff Components

TNERC

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

51.96

54.57

57.31

59.55

59.55

59.55

Interest on Loan

226.45

268.64

296.51

109.75

88.86

82.26

Return on Equity

49.26

63.45

77.65

21.57

15.55

15.47

111.42

115.88

120.51

Depreciation

O&M expenses

126.20

133.25

140.69

Other Debits

1.54

1.05

0.99

Less; Misc Income

9.84

9.84

9.84

308.77

288.22

289.12

Total

439.09

502.54

551.98

Table 114 Fixed cost admitted by TNERC for MTPS

(Rs. In Crores)

2010-11

TNEB
2011-12

2012-13

2010-11

TNERC
2011-12

2012-13

33.32

33.53

33.74

32.51

32.51

32.51

Interest on Loan

123.63

146.67

161.88

45.85

36.06

32.19

Return on Equity

26.89

34.64

42.39

11.78

8.49

8.44

O&M Expenses

82.15

85.43

88.85

86.92

92.36

98.09

Other Debits

0.84

0.57

0.54

Less; Misc Income

8.41

8.41

8.41

169.49

161.58

163.36

Tariff Components
Depreciation

Total

265.99

300.27

326.86

161

Table 115 Fixed cost admitted by TNERC for NCTPS

(Rs. In Crores)

TNEB
Tariff Components

TNERC

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

61.77

62.62

63.48

65.20

65.20

65.20

Interest on Loan

247.91

294.1

324.61

104.17

83.13

75.60

Return on Equity

53.93

69.47

85.01

23.61

17.03

16.93

144.48

150.26

156.27

Depreciation

O&M expenses

139.7

146.35

153.31

Other Debits

1.68

1.15

1.08

Less; Misc Income

6.78

6.78

6.78

327.58

306.08

305.34

Total

508.09

576.45

629.37

Table 116 Fixed cost admitted by TNERC for Kuttalam GTPS (Rs. In Crores)
Tariff
Components

TNEB

TNERC

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

Depreciation

15.61

15.61

15.61

11.46

11.46

11.46

Interest on Loan

30.90

36.66

40.46

37.23

31.37

30.41

Return on Equity

6.72

8.66

10.60

4.15

2.99

2.98

13.67

14.22

14.79

13.68

14.25

14.82

0.30

0.20

0.19

0.02

0.02

0.02

66.80

60.25

59.84

O&M expenses
Other Debits
Less; Misc
Income
Total

66.90

75.15

81.46

Table 117 Fixed cost admitted by TNERC for Kovilkalappal GTPS (Rs. In Crores)
Tariff
Components

TNEB

TNERC

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

Depreciation

18.22

20.93

24.03

12.35

12.35

12.35

Interest on Loan

33.31

39.52

43.62

32.16

26.75

25.57

Return on Equity

7.25

9.33

11.42

4.47

3.23

3.21

O&M expenses

4.69

4.88

5.07

10.09

10.53

10.98

0.32

0.22

0.20

0.11

0.11

0.11

59.28

52.97

52.20

Other Debits
Less; Misc
Income
Total

63.47

74.66

84.14

162

Table 118 Fixed cost admitted by TNERC for Valuthur

(Rs. In Crores)

2010-11

TNEB
2011-12

2012-13

2010-11

TNERC
2011-12

2012-13

Depreciation

30.98

36.84

43.79

26.45

26.45

26.45

Interest on Loan

46.97

55.72

61.5

102.39

86.99

85.08

Return on Equity

10.22

13.16

16.11

9.58

6.91

6.87

8.4

8.73

9.08

13.45

13.45

14.36

Other Debits

0.68

0.47

0.44

Less; Misc Income

0.16

0.16

0.16

152.39

134.11

133.04

Tariff Components

O&M expenses

Total

96.57

114.45

130.48

Table 119 Fixed cost admitted by TNERC for BBGTPS

Tariff
Components

TNEB

(Rs. In Crores)
TNERC

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

Depreciation

30.27

30.3

30.32

18.16

18.16

18.16

Interest on Loan

48.98

58.1

64.13

20.13

15.29

13.02

Return on Equity

10.65

13.72

16.79

6.58

4.74

4.72

O&M expenses

12.48

12.98

13.5

10.26

10.83

11.42

0.47

0.32

0.30

0.24

0.24

0.24

55.36

49.10

47.38

Other Debits
Less; Misc
Income
Total

102.38

115.1

124.74

7.9.2 Determination of Variable (Energy) Charges :

7.9.2.1

As per Regulation 43 (ii) of the Tarff Regulation, the Energy (Variable)

charges shall be worked out on the basis of ex-bus energy delivered /
sent out from the generating station.

7.9.2.2

Rate of energy charges is based on the following elements:

(a) Price of primary fuel
(b) Quantum of primary fuel (coal) in kg required for generation of one
kWh of electricity at generator terminals and shall be computed on
the basis of Gross Station Heat Rate (less heat contributed by
secondary fuel oil) and gross calorific value of coal.
(c) Price of secondary fuel oil
(d) Normative quantity of secondary fuel
(e) Normative auxiliary consumption

163

7.10

Price of Primary Fuel

7.10.1 The TNEB procures coal from the following sources through multi model
transport (rail, sea-rail) under coal shipping agreement for the power
plants.
Table 121 Quantity of coal procurement by TNEB
Sl.No

Name of the coal field

Eastern coal fields Ltd (ECL)

Annual Quantity (in lakh

tonnes)
14.25

Mahanadhi coal fields Ltd (MCL)

118.75

Total

133.00

7.10.2 Besides, the TNEB import 18 lakhs tonnes annually to meet the
requirements of the station.
7.10.3 The contracted quantity is allocated as below:
Table 122 Allocation of coal to different thermal stations

(in lakh tonnes)

Sl. No

Station

ECL Coal

ETPS

3.20

13.12

16.32

TTPS

4.30

44.27

9.00

57.57

MTPS

2.50

36.36

5.50

44.36

NCTPS

4.25

25.00

3.50

32.75

14.25

118.75

18.00

151.00

Total

MCL Coal

Imported

Total

7.10.4 The coal is priced at average landed cost which includes basic cost of
coal, Royalty, taxes and duties, ocean freight, railway freight and
handling charges.
7.10.5 The average landed cost of coal is calculated every quarter in advance
(provisionally) with reference to the linkage of coal and quantum of
coal for the quarter. At the end of the year the landed cost for the entire
year is calculated based on the actual payment and actual quantity.
The variation between the actual cost computed at the end of the year
and the quarterly landed cost at which the consumption of coal was
priced is adjusted.

164

7.10.6 The weighted average landed cost of coal actually received during 200809 and 2009-10 as submitted by TNEB were as below:
Table 123 Weighted average landed cost of coal

(Rs / MT)
Sl.No

2008-09

Station

2009-10

Indigenous Import

Indigenous Import

ETPS

1900

1919

TTPS

2543

5628

2485

5334

MTPS

2246

5603

2256

5423

NCTPS

1832

5189

1851

5018

7.10.7 The TNEB report that imported coal is blended with indigenous coal in the
ratio of 20: 80 in the stations except ETPS. But, the quantum of coal
imported is less than 20% of the indigenous coal.

Hence, for the

purpose of calculation of coal cost, the quantity as per allocation has

been considered.
7.10.8 The increase in weighted average landed cost of coal in 2009-10 was
marginal for ETPS, MTPS and NCTPS and there was decrease in the
average landed cost of coal for TTPS. The increase in weighted
average cost of imported coal is also negative. Hence, for 2010-11 an
increase of 1% is allowed to arrive at the weighted average cost of
coal.

7.11

Quantity of Primary Fuel / Coal

7.11.1 As per Regulation 43 of the Tariff Regulation, the quantity of primary fuel
required for generation of one kWh of electricity at generator terminals in
kg or litre or cum as the case may be, shall be computed on the basis of
Gross Station Heat Rate (less heat contributed by secondary fuel oil for
coal / lignite based generating stations) and gross calorific value of coal /
lignite or gas or liquid fuel actually fired.

165

7.12

Gross Station Heat Rate:

7.12.1 In the TNERC (Terms and conditions for determination of Tariff)

Regulations, 2005, the following norms for existing coal based Thermal
Power generating station have been specified based on the performances
reported and the rates adopted for previous tariff order:
Table 124 Normative heat rate for existing thermal stations
Sl.No

Station

Heat Rate (in kcal / kWh)

ETPS

3200

TTPS

2453

MTPS

2500

NCTPS

2393

7.12.2 The normative gross station heat rates for the new thermal power station
specified in the Tariff Regulations are as below:
Table 125 Normative heat rate for new thermal stations

Particulars

200 / 210 / 250 MW 500 MW and above

series
series
Stabilization 2600 Kcal / kWh
2550 Kcal / kWh

During
Period
Subsequent period

2500 Kcal / kWh

2450 Kcal / kWh

7.12.3 The TNEB has furnished actual average station heat rate (kcal / kWh) for
the stations from 2003-04 to 2008-09 and also for 2009-10 (upto Feb
2010) as below:
Table 126 Trend in station heat rate of existing thermal stations
Sl.No

Station

2003-

2004-

2005-

2006-

2007-

2008-

Average

2009-

04

05

06

07

08

09

for

10

years

upto
Feb

ETPS

3328

3280

3303

3243

3362

3277

3299

3388

TTPS

2459

2487

2492

2495

2543

2554

2505

2553

MTPS

2542

2555

2538

2514

2499

2511

2527

2536

NCTPS

2489

2453

2451

2450

2453

2457

2459

2466

166

7.12.4 The Commission has prescribed the following heat rate norms in Clause
37 of Terms and Conditions for determination of tariff Regulations 2005 for
the power stations:Gross Station Heat Rate (in kcal / kWh)
1. ETPS

3200

2. TTPS

2453

3. MTPS

2500

4. NCTPS

2393

7.12.5 The station heat rate norm for new thermal power station has
stipulated as 2500 kcal / kWh and 2450 kcal / kWh

been

for 210 / 500 MW

generating units. These norms correspond to the standards stipulated in

the CERC (Terms and Conditions of Tariff) Regulations 2004. The CERC
has modified the norms in 2009 as 2500 kcal / kWh and 2425 kcal / kWh
for 210 / 500 MW generating units. The details furnished by TNEB for
these power stations have been examined and it is observed that they
have exceeded the normative heat rate in many power stations. The
TNEB has furnished the heat rates on a quarterly basis for 2008-09 and
2009-10. They have sought relaxation of station heat rate norms for TTPS
and NCTPS in their letter dated 23-7-2010.
7.12.6 The Central Electricity Authority commissioned a consultant by name
Evonic Energy Services India Pvt Ltd in June 2008 to evaluate the
performance of TTPS and in August 2008 to evaluate the performance of
NCTPS. The consultant recorded the heat rate as 2575.31 kcal / kWh for
NCTPS and 2826 kcal / kWh for TTPS. The TNEB has

prayed for

relaxation of heat rate norm to 2560 kcal / kWh for units I, II & III and
2600 kcal / kWh for units IV & V for TTPS and 2500 kcal / kWh for
NCTPS.
7.12.7 Considering that the Commission has prescribed a norm of 2500 kcal /
kWh for new plants, the Commission approves relaxation of norms for

167

TTPS and NCTPS upto 2500 kcal / kWh in terms of Clause 90 of the Tariff
Regulations 2005 for the year 2010-11.
7.12.8 The Commission allows the following station heat rate in relaxation of the
Regulation 90 of TNERC Tariff Regulations:
Table 127 Station heat rate admitted by the Commission for existing thermal stations
Sl.No
1
2
3
4

7.13

Station
ETPS
TTPS
MTPS
NCTPS

Heat Rate (in kcal / kWh)

3200
2500
2500
2466

Gross Calorific Value of Coal

7.13.1 The TNEB had not furnished the Gross Calorific Value (GCV) in the ARR
statements received with original petition. The TNEB was directed to
furnish the GCV of coal.
7.13.2 In the revised formats furnished by the TNEB, they have furnished the
range of GCV as below:
(Kcal / kg)

Table 128 GCV of coal furnished by TNEB

Station
ETPS
TTPS
MTPS
NCTPS

2009-10
3317
3378
3527
3600-3800

2010-11
3200-3500
3200-3500
3500-3800
3600-3800

2011-12
3200-3500
3200-3500
3500-3800
3700-3801

2012-13
3200-3500
3200-3500
3500-3800
3700-3802

7.13.3 The average calorific values per kg of coal recorded in the Annual
Accounts Statement of the TNEB for the period from 2003-04 to 2008-09
are below:
Table 129 Trend of GCV of existing thermal stations

(Kcal / kg)
Sl.
No.
1
2
3
4

Stations
ETPS
TTPS
MTPS
NCTPS

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

3465
3763
3611
3458

3380
3650
3536
3336

3385
3353
3975
3877

3411
3434
3723
3659

3394
3235
3716
3794

3396
3415
3613
3743

168

7.13.4 The payments to coal suppliers are adjusted with reference to the quality /
grade of coal determined on testing of samples. It is seen that the coal
received from Mahanadhi Coal Field (MCL) were of F grade and from
Eastern Coal Field (ECL) were of B and C grades.
7.13.5 The calorific value of coal corresponding to Useful Heat Value (UHV) was
calculated with reference to moisture and ash content as furnished in the
test certificate. It was found that the GCV of coal from ECL was 6000 /
6007 Kcal / kg and the GCV of coal from MCL was 3914 Kcal / kg. The
GCV of imported coal (as received) was 5424 Kcal / kg.
7.13.6 When the coal from different sources are blended according to the
allocated quantity, the weighted average GCV of coal for each station
shall be as below:
i.TTPS

- 4306 Kcal / kg

ii.MTPS

- 4219 Kcal / kg

iii.NCTPS

- 4346 Kcal / kg

iv.ETPS

- 4323 Kcal / kg

7.13.7 The TNEB in their petition have submitted that specific consumption of
coal, furnace oil, gas and other oil for their own generating stations are
based on performance of financial year 2007-08. The TNEB has also
submitted that the consumption levels would be maintained over the
period through regular maintenance.
7.13.8 The TNEB has used projected specific consumption of coal (based on the
number arrived at with reference to energy generated and quantum of coal
consumed) i.e. the quantity of coal required for generation of one kWh of
electricity at generator terminal to project the quantum of fuel, instead of
on the basis of Station Heat Rate and calorific value of coal.
7.13.9 The TNEB has not considered the provision of the Tariff Regulations
which is mandatory.
7.13.10 The TNEB has projected the specific consumption of coal as below:

169

Table 130 Projection of specific consumption of coal by TNEB (kg / kWh)

Sl.
No.
1
2
3
4

Station
ETPS
TTPS
MTPS
NCTPS

2010-11

2011-12

2012-13

0.95
0.77
0.83
0.66

0.95
0.77
0.83
0.66

0.95
0.77
0.83
0.66

7.13.11 However, the specific consumption of coal when computed based on

normative Station Heat Rate and GCV (without taking into account of
GCV of secondary fuel) of coal will be as below:
Table 131 Specific consumption of coal based on normative station heat rate

Sl.
No.
1
2
3
4

Station

ETPS
TTPS
MTPS
NCTPS

Station Heat
Rate
(kcal / kWh)
3200
2500
2500
2466

GCV
(kcal / kg)
4323
4306
4219
4346

Specific
Consumption
(kg / kWh)
0.74
0.58
0.59
0.57

7.13.12 The Commission fixes the quantity of coal based on the Station Heat
Rate and GCV of primary fuel as per provisions in the Tariff Regulations.

7.14

Secondary Fuel Oil (SFO) Consumption

7.14.1 The following normative secondary fuel oil consumption per kWh has
been specified in the Tariff Regulations:
(a) Coal based generating stations except ETPS

- 2 ml / kWh

(b) ETPS

-12 ml / kWh

7.14.2 The relaxed norms for ETPS were fixed when the station was under
Renovation and Modernization (R & M). The TNEB in the petition have
projected the following specific consumption for HFO (secondary fuel oil)

170

Table 132 Specific consumption of SFO projected by TNEB

(ml / kWh)
Sl. No
1
2
3
4

Station
ETPS
TTPS
MTPS
NCTPS

2010-11
6
3.80
1.90
1.83

2011-12
6
3.80
1.90
1.83

2012-13
6
3.80
1.90
1.83

7.14.3 It is assumed that the reduced specific consumption of secondary fuel i.e
6 ml / kWh projected for ETPS may be on account of Renovation and
Modernization. This is provisionally accepted.
7.14.4 The TNEB has projected higher consumption of HFO i.e., at the rate of
3.80 ml / kWh for TTPS as against the normative consumption of 2 ml /
kWh.
7.14.5 The consumption of secondary fuel oil is allowed at the normative level
except for ETPS for which a relaxed norm was already fixed. The TNEB
has projected 6 ml / kWh and this is adopted.

7.14.6 Heat contributed by secondary fuel oil:

(1) The GCV of HFO is in the order of 10000 kcal / kg or 9389.67 kcal / ltr or
9.38967 kcal / ml. The TNEB use HSD / LDO also as secondary fuel.
(2) The TNEB has stated that the actual heat contributed by the HFO and
HSD in March 2010 in various station were as below:
Table 133 Heat contributed by SFO as projected by TNEB
Sl.
No
1
2
3

Details

ETPS

Heat contributed by HFO (kcal

/ kg)
Heat rate of HSD (kcal / kg)
Total heat contributed by
secondary fuel ((kcal / kg)

1
25
26

TTPS

25.50
25.50

MTPS

NCTPS

0.142

0.34

1.183
1.325

3.30
3.64

(3) The heat contributed at the normative specific consumption of secondary

fuel (kcal / 2 ml / kWh) will be as below:

171

Table 134 Heat contributed by SFO as admitted by TNERC

(Kcal / kWh)
Sl. No
1

Details
Heat
contributed
at
the
normative specific consumption (
2 ml / kWh for other than ETPS
and 6 ml to ETPS)

ETPS
56.34

TTPS
18.78

MTPS
18.78

NCTPS
18.78

(4) The statement showing the actual specific consumption of furnace oil and
LDO / HSD from 2003-04 to 2008-09 is furnished below:
Table 135 Trend of specific fuel oil consumption
Sl.

Station

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

FO

FO

FO

FO

FO

FO

No
LDO

LDO

LDO

LDO

LDO

LDO

HSD

HSD

HSD

HSD

HSD

HSD

ETPS

8.17

0.47

3.99

0.31

4.92

1.20

8.91

2.59

4.72

1.42

7.10

1.70

TTPS

0.79

0.10

0.55

0.06

0.87

0.07

1.76

0.07

2.95

0.07

3.42

0.07

MTPS

0.51

0.03

0.33

0.03

0.34

0.03

0.35

0.03

0.43

0.04

0.63

0.29

NCTPS

3.81

0.20

3.61

0.15

1.67

0.20

0.71

0.12

0.58

0.12

0.78

0.13

(5) The oil Consumption in TTPS is much higher than the normative specific
consumption from 2006-07. The TNEB shall study the reasons and take
corrective action to reduce the consumption to the normative level.

7.14.7 Price of secondary fuel:

(1) The stations are predominantly using HFO as secondary fuel oil. The
TNEB has projected the following rates for HFO and HSD / LDO for the
year 2010-11.
Table 136 Price of SFO furnished by TNEB

Station
ETPS
TTPS
MTPS
NCTPS

HFO (Rs / kg)

25981
24407
21627
26514

HSD/LDO (Rs / kg)

43018
34291
36175
33604

(2) The TNEB has stated the following:

172

(a)

The total cost towards supply of fuel oils HFO, HSD (ordinary /
premium) and LDO is arrived at based on the finalization of tender
annually. However, the actual price of the above fuel oil prevailing
on the date supply only shall be applicable since; the above
prices are subject to revision by the Government of India.

(b)

The basic price of fuel oil is being revised on a fortnightly basis

based on Import parity, statutory levies as applicable on the date
of supply shall prevail.

(c)

Globally, the oil prices are highly volatile. There is an increase of

around 25% in the contractual cost of fuel oil (HFO in 2009-10)
when compared to that of 2007-08. However, only 5% escalation
towards the cost of fuel oil has been considered.

(3) The Commission has considered the latest prevailing price communicated
by the oil suppliers to estimate the cost of secondary fuel for 2010-11 and
with an escalation of 5% for 2011-12 and 2012-13

7.14.8 Generation Tariff (Variable cost) for New Stations

7.14.8.1 The TNEB has submitted that the new generating stations to be
established at North Chennai and Mettur are linked to Mahanadhi Coal
fields for their coal requirements.
7.14.8.2 Regulation 7 (7) (i) of the TNERC Tariff Regulations specify the
following:
A generation company or a licensee may make an application as per
Appendix I to these Regulations, for determination of provisional tariff
in advance of the anticipated date of completion of the project, based on
the capital expenditure actually incurred upto the date of making of the
application or a date prior to making of the application, duly audited and
certified by the statutory auditors, and the provisional tariff shall be
charged from the date of commercial operation of the respective units of
the generation station or the line or sub-station of the transmission
system.

173

7.14.8.3 The TNEB has submitted the informations in the formats only for the
existing stations. However, fuel cost for these stations have been
estimated provisionally and included in the ARR.
7.14.8.4 In respect of TNEBs new generating units namely, NCTPS stage II
unit 1 & 2 and MTPS stage III, only a provisional tariff is considered in
this tariff order as below:
(Rs / kWh)
Sl. NO
1
2

Stations
NCTPS
MTPS
Expansion

2010-11
0

2011-12
2.52
2.96

2012-13
2.22
2.68

7.14.8.5 The tariff now considred for new stations are only estimates and shall be
provisional. The TNEB shall file a separate petition in each of the above
case at an appropriate time in accordance with the Commission tariff
regulation in force.
7.14.8.6 The variable cost for each station for each year is computed as below:

7.14.9 Variable cost of coal based thermal station

(1) ETPS
Table 137 Determination of variable cost - ETPS
Sl. No

Description

Unit

Capacity

Gross Station Heat Rate

MW
Kcal /
kWh

Specific fuel oil consumption

Ml / kWh

Auxiliary Consumption

Average calorific value of oil

kcal / Kl

Average calorific value of Coal

kcal / Kg

Weighted average price of oil

8
9

2010-11

2011-12

2012-13

450

450

450

3200

3200

3200

14.48

14.48

14.48

9389.67

9389.67

9389.67

4323

4323

4323

Rs / Kl

34751

36594

38423

Average landed cost of coal

Rs / MT

1938

1957

1977

Rate energy charges from Oil

Ps / kWh
Kcal /
kWh
Kcal /
kWh

24.38

25.67

26.96

56.34

56.34

56.34

3143.66

3143.66

3143.66

10

Heat contributed from Oil

11

Heat contributed from Coal

174

12

Specific consumption of coal

Kg / kWh

0.727

0.727

0.727

13

Rate of energy from Coal

Ps / kWh

164.79

166.41

168.11

14

Rate of energy ex-bus

Ps / kWh

189.17

192.08

195.07

(2) TTPS
Table 138 Determination of variable cost - TTPS
Sl. No

Description

Unit

2010-11

2011-12

2012-13

Capacity

Gross Station Heat Rate

MW
Kcal /
kWh

1050

1050

1050

2500

2500

2500

Specific fuel oil consumption

Ml / kWh

Auxiliary Consumption

8.5

8.5

8.5

Average calorific value of oil

kcal / Kl

9389.67

9389.67

9389.67

Average calorific value of Coal

kcal / Kg

4306

4306

4306

Weighted average price of oil

Rs / Kl

34834.69

36576.42

38405.25

Average landed cost of coal

Rs / MT

3063.25

3093.883

3124.821

Rate energy charges from Oil

7.61

7.99

8.39

18.78

18.78

18.78

2481.22

2481.22

2481.22

10

Heat contributed from Oil

11

Heat contributed from Coal

Ps / kWh
Kcal /
kWh
Kcal /
kWh

12

Specific consumption of coal

Kg / kWh

0.576

0.576

0.576

13

Rate of energy from Coal

Ps / kWh

192.91

194.84

196.79

14

Rate of energy ex-bus

Ps / kWh

200.52

202.83

205.18

(3) MTPS
Table 139 Determination of variable cost -MTPS
Sl. No

Description

Unit

Capacity

Gross Station Heat Rate

MW
Kcal /
kWh

Specific fuel oil consumption

2010-11

2011-12

2012-13

840

840

840

2500

2500

2500

Ml / kWh

Auxiliary Consumption

Average calorific value of oil

kcal / Kl

9389.67

9389.67

9389.67

Average calorific value of Coal

kcal / Kg

4219

4219

4219

Weighted average price of oil

Rs / Kl

35587.56

37366.94

39235.28

Average landed cost of coal

Rs / MT

2721.92

2749.139

2776.631

175

Rate energy charges from Oil

10

Heat contributed from Oil

11

Heat contributed from Coal

Ps / kWh
Kcal /
kWh
Kcal /
kWh

7.82

8.21

8.62

18.78

18.78

18.78

2481.22

2481.22

2481.22

12

Specific consumption of coal

Kg / kWh

0.588

0.588

0.588

13

Rate of energy from Coal

Ps / kWh

175.91

177.67

179.45

14

Rate of energy ex-bus

Ps / kWh

183.73

185.88

188.07

(4) NCTPS
Table 140 Determination of variable cost -NCTPS
Sl. No

Description

Unit

Capacity

Gross Station Heat Rate

MW
Kcal /
kWh

Specific fuel oil consumption

Ml / kWh

Auxiliary Consumption

Average calorific value of oil

kcal / Kl

Average calorific value of Coal

kcal / Kg

Weighted average price of oil

Rs / Kl

Average landed cost of coal

Rs / MT

Rate energy charges from Oil

2010-11

2011-12

2012-13

630

630

630

2466

2466

2466

8.5

8.5

8.5

9389.67

9389.67

9389.67

4346

4346

4346

34751

36594

38423

2297.57

2320.546

2343.751

7.60

8.00

8.40

18.78

18.78

18.78

2447.22

2447.22

2447.22

10

Heat contributed from Oil

11

Heat contributed from Coal

Ps / kWh
Kcal /
kWh
Kcal /
kWh

12

Specific consumption of coal

Kg / kWh

0.563

0.563

0.563

13

Rate of energy from Coal

Ps / kWh

141.39

142.81

144.24

14

Rate of energy ex-bus

Ps / kWh

148.99

150.81

152.63

7.14.10

Energy (Variable) Charges of Gas Based Thermal Stations:

7.14.10.1

Normative Station Heat Rate for gas turbine / combined cycle

generating station:
(1) The following heat rates have been specified in the TNERC Tariff
Regulations:

176

Table 143 Normative Station Heat Rate for GTS

Open Cycle
Combined cycle

Advanced
class E/.EA/EC/E2
class
machine
machine
2685 Kcal / kWh
2830 Kcal / kWh
1850 Kcal/ kWh
1950 Kcal / kWh

(2) The Basin Bridge Gas Turbine Power Station (BBGTPS) is operated
under open cycle with Naphtha as fuel and all other stations are combined
cycle generating station with gas as fuel.
(3) The station heat rates furnished by the TNEB are as below:
Table 144 station heat rates furnished by the TNEB

(in kcal / kWh)

Sl.

Station

2007-08

2008-09

2009-10

BBGTPS

3158

3127

3233

2010-11

2011-12

2012-13

3230

3230

3230

No
1

3230
2

Kovilkalappal

1888.88

1884.21

1916

1872

1872.45

1872.45

Valuthur I

1852

1663

1788

1762.20

1886

1886.38

Valuthur II

2459

1830

1753.85

1726

1726.01

Kuttalam

1869

1792

1824

1803

1820

1851

(4) Except the machines at BBGTPS, the machines at other stations are of
Advance class machines and hence the normative Gross Station Heat
Rate of 1850 kcal / kWh is applicable. The normative heat rate is adopted
for all gas station except BBGTPS. For BBGTPS, the heat rate proposed
by the TNEB is adopted to compensate the start up fuel.

7.14.10.2

Gross Calorific Value

(1) The GCV of Naphtha and Gas furnished by the TNEB are detailed below:
Table 144 GCV of Naphtha and Gas furnished by the TNEB

(kcal / kg and Kcal / Scm)

Sl.

Station

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

BBGTPS

10574

10572

10572

10572

10572

10572

No
1

177

10249

10249

10249

10249

10249

10249

Kovilkalappal

9746.56

9607

9658

9660

9660

9660

Valuthur I

8832

8791

8811

8811

8811

8811

Valuthur II

8774

8811

8811

8811

8811

Kuttalam

9475.20

9406

9529

9375

9400

9563

(2) In respect of gas fired generating station, the TNEB make payment at the
rate for 1000 scm for 10000 kcal / Scm and whenever the GCV is less
than 10000 kcal / scm, proportionate rebate is allowed.
(3) The quantum of gas required is arrived at taking the GCV of gas at 10000
Kcal. The Government of India has

ordered the revision price of gas

under Administered Price Mechanism (APM) as 4.20 USD for 251548.43

kcal. The revised price is to take effect from 01-06-2010. The revised
APM price is converted into Rupee and to the calorific value of 10000 kcal
/ scm.
(4) For the gas based thermal station at Valuthur, 30% requirement is met
under Market Driven Price (MDP) and the balance under APM.
(5) The energy (variable) charges for the gas based thermal station are
determined as below:

7.14.10.3

Variable cost of Gas based Thermal Generating Stations

(1) Kovilkalappal
Table 145 Variable cost of GTS - Kovilkalappal
Sl.
No

Description

Unit

Capacity

MW

Gross Station Heat Rate

Kcal / kWh

Auxiliary Consumption

Average calorific value of Gas

Scm

Average cost of Gas

201011

2011-12

2012-13

107.88

107.88

107.88

1850

1850

1850

10000

10000

10000

Rs / Scm

7.92

8.77

8.77

Rate of energy from Gas

Ps / kWh

155.87

172.60

172.60

Net Generation

MU

610

610

610

Total energy cost

Rs / Crores

95.08

105.29

105.29

178

Fixed Transport Charges

Rs / Crores

4.67

4.67

4.67

10

Total Variable Cost

Rs / Crores

99.75

109.96

109.96

11

Net Energy charges per unit

Ps / kWh

163.53

180.26

180.26

2) Kuttalam
Table 146 Variable cost of GTS - Kuttalam
Sl.
No

Description

Unit

Capacity

Gross Station Heat Rate

MW
Kcal /
kWh

Auxiliary Consumption

Average calorific value of Gas

Scm

Average cost of Gas

2010-11

2011-12

2012-13

101

101

101

1850

1850

1850

10000

10000

10000

Rs / Scm

7.92

8.77

8.77

Rate of energy from Gas

Ps / kWh

155.87

172.60

172.60

Net Generation

641

641

641

Total energy cost

99.91

110.64

110.64

Fixed Transport Charges

7.11

7.11

7.11

107.02

117.75

117.75

166.96

183.69

183.69

10

Total Variable Cost

MU
Rs /
Crores
Rs /
Crores
Rs /
Crores

11

Net Energy charges per unit

Ps / kWh

3)

Valuthur I
Table 147 Variable cost of GTS Valuthur-I

Sl.
No

Description

Unit

Capacity

Gross Station Heat Rate

MW
Kcal /
kWh

Auxiliary Consumption

Average calorific value of Gas

Scm

Average cost of Gas

2010-11

2011-12

2012-13

95

95

95

1850

1850

1850

10000

10000

10000

Rs / Scm

8.78

8.79

8.79

Rate of energy from Gas

Ps / kWh

172.80

172.99

172.99

Net Generation

560

560

560

Total energy cost

96.77

96.88

96.88

Fixed Transport Charges

1.79

1.79

1.79

98.56

98.67

98.67

175.99

176.19

176.19

10

Total Variable Cost

MU
Rs /
Crores
Rs /
Crores
Rs /
Crores

11

Net Energy charges per unit

Ps / kWh

179

4)

Valuthur II
Table 148 Variable cost of GTS Valuthur-II

Sl.
No

Description

Unit

Capacity

Gross Station Heat Rate

MW
Kcal /
kWh

Auxiliary Consumption

Average calorific value of Gas

Scm

Average cost of Gas

2010-11

2011-12

2012-13

92

92

92

1850

1850

1850

10000

10000

10000

Rs / Scm

7.76

8.79

8.79

Rate of energy from Gas

Ps / kWh

152.72

172.99

172.99

Net Generation

446

594

594

Total energy cost

68.11

102.76

102.76

Fixed Transport Charges

1.79

1.79

1.79

69.90

104.55

104.55

156.74

176.01

176.01

10

Total Variable Cost

MU
Rs /
Crores
Rs /
Crores
Rs /
Crores

11

Net Energy charges per unit

Ps / kWh

5)

BBGTPS
Table 149 Variable cost of GTS BBGTPS
Sl.
No

Description

Unit

2010-11

2011-12

2012-13

Capacity

Gross Station Heat Rate

MW
Kcal /
kWh

120

120

120

3230

3230

3230

Auxiliary Consumption
Average calorific value of
Naphtha

1.00

1.00

1.00

kcal / kg

10572

10572

10572

Average cost of Naphtha

Rs / Kg

47.92

50.316

52.8318

Rate of energy from Naphtha

Ps / kWh

1472.61

1546.24

1623.56

Net Generation

60

60

60

Total energy cost

MU
Rs /
Crores

88.36

92.77

97.41

7.14.10.4 In this connection, the provision in Regulation 43 (iii) of the TNERC

tariff Regulation is reproduced below:

180

(iii) Adjustment of rate of energy charge (REC) on account of variation in

price or heat value of fuels
Initially, Gross Calorific Value of coal/lignite or gas or liquid fuel shall be taken
as per actuals of the preceding three months. Any variation shall be adjusted on a
month to month basis on the basis of average Gross Calorific Value of
coal/lignite or gas or liquid received and burnt and weighted average landed cost
incurred by the Generating Company for procurement of coal/lignite, oil, or gas
or liquid fuel, as the case may be for a Power Station.
In its bills, Generating Company shall indicate rate of energy charges at base
price of primary and secondary fuel specified by the Commission and the fuel
price adjustment to it separately.
No separate petition need to be filed with the Commission for fuel price
adjustment.

7.14.10.5 The transaction for sale of energy or transfer price of energy shall be
adjusted accordingly.

7.14.11 Tariff to Hydro Generating Station

7.14.12 The generation circles and the total installed capacity of the hydel
generating stations under the jurisdiction of TNEB are as below:
Table 150 Installed capacity of Hydro Generating Stations

Sl. No.
1
2
3
4
5

Generation Circles
Generation Erode
Generation Kundah
Generation Kadamparai
Generation Tirunelveli
Total

Installed capacity in
MW
421.00
833.40
595.45
334.30
2184.15

.
7.14.13

As the Circles do not have separate accounts for each of the

generating stations in their area, single generation tariff for all the
stations in the jurisdiction of each circle will be determined.

181

7.14.14

Regulation 49 of the TNERC Tariff Regulations specifies the following:

49 components of tariff
Tariff for sale of electricity from a hydro power generating station shall
comprise of two parts namely, the recovery of annual capacity charges
and energy charges to be worked out in the manner provided hereinafter.

7.14.15

Regulation 53 of the TNERC Tariff Regulations specifies the following:

53. Computation of Annual Energy Charges.

The two part tariff for sale of electricity from a hydro power generating station
shall comprise a recovery of annual capacity (fixed) charges and primary
energy charges.
7.14.16

The annual capacity (fixed) charges shall consist of the following and
shall be computed as per the principles in Chapter III.
(a)

Interest on Loan Capital

(b)

Depreciation

(c)

Return on equity

(d)

Operation and Maintenance expenses excluding operating

expenses like water charges, lubricants, consumables and
station supplies.

(e)

7.15

Interest on Working Capital

The Regulation 54 of TNERC Tariff Regulations specifies the following:

54) Energy RateEnergy charges per kWh shall be arrived at as below:

Energy rate =

Annual Capacity Charges + Annual Primary Energy Charges

--------------------------------------------------------------------------------Saleable Energy

7.15.1.1 Determination of Annual Capacity Charges

7.15.1.2 The elements constituting fixed charges have been computed and
allocated to generating stations in the chapters as detailed below:

182

Table 151 Elements of Fixed Charges

Sl. No
1
2

3
4

Fixed Charges component

Depreciation
Interest on Loan Capital
Return on Equity
Operation & Maintenance
Expenses

Reference to chapter / para

6.5.5
6.3.21
6.4.7

6.11.2

7.15.1.3 The fixed (annual capacity) charges for the group of generating
stations in each circle claimed by TNEB and approved by the
Commission are as below:
(a) Erode Circle
Table 152 Fixed Charges approved by the Commission for Erode Generation Circle

(Rs.in Crores)
TNEB

TNERC

Tariff
Component

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

Depreciation

14.76

14.90

15.04

22.41

35.01

37.18

Interest on Loan

59.13

70.15

77.42

86.23

141.79

119.20

Return on Equity

12.86

16.57

20.28

8.63

9.71

9.66

O&M expenses

28.67

29.82

31.01

35.71

41.40

44.51

0.62

0.66

0.62

0.75

0.75

0.75

152.85

227.82

210.42

Other Debits
Less; Misc
Income
Total

115.42

131.44

143.75

(b) Kadamparai Circle

Table 153 Fixed Charges approved by the Commission for Kadamparai Generation
Circle
Tariff
Component

(Rs.in Crores)
TNEB

TNERC

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

9.03

9.08

9.12

11.52

11.52

11.52

Interest on Loan

31.08

36.87

40.7

30.51

25.41

24.31

Return on Equity

6.76

8.71

10.66

4.17

3.01

2.99

24.98

25.98

27.02

30.38

32.41

34.50

0.30

0.20

0.19

0.13

0.13

0.13

76.75

72.42

73.38

Depreciation

O&M expenses
Other Debits
Less; Misc
Income
Total

71.85

80.64

87.5

183

(c)

Kundah Circle

Table 154 Fixed Charges approved by the Commission for Kundah Generation Circle

(Rs.in Crores)
Tariff
Component

TNEB

TNERC

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

22.57

22.97

23.37

30.07

30.07

30.07

Interest on Loan

81.1

96.21

106.19

108.16

91.59

89.27

Return on Equity

17.64

22.73

27.81

10.89

7.85

7.81

O&M expenses

40.44

42.05

43.74

47.69

50.40

53.25

0.78

0.53

0.50

0.96

0.96

0.96

196.63

179.48

179.94

Depreciation

Other Debits
Less; Misc
Income
Total

161.75

183.96

201.11

(d) Tirunelveli Circle

Table 155 Fixed Charges approved by the Commission for Tirunelveli Generation
Circle
(Rs.in Crores)
TNEB

TNERC

Tariff
Component

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

Depreciation

7.74

8.63

9.63

9.69

11.28

11.29

Interest on Loan

23.29

27.63

30.5

42.13

34.13

32.08

Return on Equity

5.07

6.53

7.98

3.81

2.95

2.93

31.38

32.63

33.94

35.70

38.87

41.59

0.27

0.20

0.19

0.50

0.50

0.50

91.10

86.93

87.58

O&M expenses
Other Debits
Less; Misc
Income
Total

67.48

75.42

82.05

7.15.1.4 Primary Energy Charges

7.15.2 The Regulation 53 (3) of TNERC Tariff Regulations specifies the following:
(3) Primary Energy Charges shall be the operating expenses like cost of
water, lubricants, consumables and station supplies
7.15.3 The TNEB has not claimed operating charges separately for hydro
stations. They have claimed the following charges for all the generating
stations including thermal generating stations.

184

Table 156 Operating Charges for all the generating stations including thermal
generating stations.

(Rs.in Crores)
Sl. No

Particulars

2010-11

2011-12

2012-13

Cost of water

21.36

21.36

21.36

Cost of lubricants and

10.38

10.38

10.38

consumables
3

Other fuel cost

10.32

10.32

10.32

Total

42.06

42.06

42.06

7.15.4 The operating expenses like lubricants, water charges, etc, for the hydro
stations have been projected based on the average of water charges,
lubricants consumed by the station during the years 2007-08 and 2008-09
as below:
Table 157 Operating Charges for Hydro generating circles
Year

Erode

Kundah

(Rs.in Crores)
Kadamparai
Tirunelveli

2010-11

0.13

0.01

0.16

0.21

2011-12

0.13

0.01

0.16

0.21

2012-13

0.13

0.01

0.16

0.22

7.15.4.1 Energy Rate

(1) The energy charges per kWh for the group of hydel generating station
in each of the circles are determined as below:
(a)

Erode Circle

Table 158 Energy Charges for Hydro generation - Erode circle

Particulars
Annual Capacity
Charges
Primary Energy
Charges
Total Energy Charges

Units

2010-11

2011-12

2012-13

152.85

227.82

210.42

0.13

0.13

0.13

(Rs. in Crores)
(Rs. in Crores)
(Rs. in Crores)

152.98

227.95

210.55

Net Generation

(in MU)

918

937

1090

Energy Rate

(in paise / unit)

1.67

2.43

1.93

185

(b)

Kadamparai Circle

Table 159 Energy Charges for Hydro generation - Kadamparai circle

Particulars
Annual Capacity
Charges
Primary Energy
Charges
Total Energy Charges

Units

2010-11

2011-12

2012-13

76.75

72.42

73.38

0.16

0.16

0.16

(Rs. in Crores)
(Rs. in Crores)
(Rs. in Crores)

76.91

72.58

73.54

Net Generation

(in MU)

934

937

937

Energy Rate

(in paise / unit)

0.82

0.77

0.78

(c)

Kundah Circle

Table 160 Energy Charges for Hydro generation - Kundah circle

Particulars
Annual Capacity
Charges
Primary Energy
Charges
Total Energy Charges

Units

2010-11

2011-12

2012-13

196.63

179.48

179.94

0.01

0.01

0.01

(Rs. in Crores)
(Rs. in Crores)
(Rs. in Crores)

196.64

179.49

179.95

Net Generation

(in MU)

1816

1816

1817

Energy Rate

(in paise / unit)

1.08

0.99

0.99

(d)

Tirunelveli Circle
Table 161 Energy Charges for Hydro generation - Tirunelveli circle

Particulars
Annual Capacity
Charges
Primary Energy
Charges
Total Energy Charges

Units

2010-11

2011-12

2012-13

91.10

86.93

87.58

0.21

0.21

0.22

(Rs. in Crores)
(Rs. in Crores)
(Rs. in Crores)

91.31

87.14

87.80

Net Generation

(in MU)

729

748

757

Energy Rate

(in paise / unit)

1.25

1.16

1.16

7.15.4.2 Determination of Tariff for the Wind Energy generated in the Wind
Mills owned by TNEB
(1) TNEB has not submitted separate proposal for determination of Tariff for
the electricity generated in the wind mills owned by TNEB and distributed
186

by them. In the petition they have not projected the quantum of energy
from 17.555 MW capacity wind mills owned by TNEB separately. The
charges therefore have also not been furnished.
(2) The Boards wind mills were installed as demonstration wind mills against
contribution / grants.
(3) The Commission directed the TNEB to furnish the Asset value of wind
mills and the quantum of contribution by segregating value of link lines
included in the generation asset.
(4) The TNEB has furnished the quantum of energy to be generated during
the control period. But the details of wind mill assets have not been
furnished.
(5) Regulation 1 (6) of the Tariff Regulation specify the following:
They shall not be applicable to co-generation, captive power plants and
generation of electricity from renewable sources of energy including mini
hydro projects (covered under Non-Conventional Energy Sources), which
will be covered by a separate Regulation to be specified by the
Commission under clause (e) of sub-section (1) of Section 86 of the
Electricity Act 2003 for promotion of such generation.
(6) Regulation 5 and 6 of the Power Procurement from New and Renewable
Sources of Energy Regulations, 2008 specified under section 86 (1) (c) of
the Electricity Act 2003, stipulates the following:
(5) While determining the tariff the Commission may adopt appropriate
financial and operational parameters
(6) While determining the tariff the Commission may adopt appropriate
tariff methodology
(7) In the Commissions order No.3 dated 15-05-2006, the cost plus, single
part average tariff was adopted for the power being purchased from
private wind energy promoters. The Commission in its order No.1 of 2009
dated 20-03-2009 has

decided to continue the same methodology of

tariff.

187

(8) The Boards wind mills were installed during the period from 1986 to 1993
as demonstration wind mills and the capitalized values of assets,
depreciation, etc, has not been furnished by TNEB.
(9) In the order No.3 dated 15-05-2006, the Commission has determined a
tariff of Rs.2.75 / unit for the wind power projects commissioned, and to
be commissioned based on agreements executed prior to the date of this
order.
(10) In view of order No.3 dated 15-05-2006, the single part tariff of Rs.2.75
per unit shall be applicable to all generation from the wind mill
established by TNEB.
(11) In view of the above, the wind mills assets shall not be included for
calculation of fixed charges elements separately.

7.15.5 Taking into consideration of the above, the cost of generation is arrived as
below:
Year: 2010-11
Table 162 Cost of generation from TNEB owned generating plants for the year 2010-11
Sl.
No.

Station

I
1
2
3
4
5
II
1
2
3
4
5
III
1
2
3
4

Coal based
ETPS
TTPS
MTPS
NCTPS
Total Coal
Gas Base
Kuttalam
Kovil Kalappal
Valuthur
BBGTPS
Total Gas
Hydro
Erode
Kundah
Kadamparai
Tirunelveli

Total
charges
(Rs.in
Crs)

Cost (Rs /
Unit)

Net
Generation
(in MU)

VC. (Ps
/ unit

Total VC
(Rs.in
Crs)

Capacity
charges
(Rs.in
Crs)

1713
7576
6143
4383
19815

189.17
200.52
183.73
148.99
182.94

324.05
1519.14
1128.65
653.02
3624.86

243.38
308.77
169.49
327.58
1049.22

567.43
1827.91
1298.14
980.60
4674.08

3.31
2.41
2.11
2.24
2.36

641
610
1006
60
2317

166.96
163.53
176.86
1472.61

107.02
99.75
177.92
88.36
473.05

66.8
59.28
152.39
55.36
333.83

173.82
159.03
330.31
143.72
806.88

2.71
2.61
3.28
23.95
3.48

152.98
196.64
76.91
91.31

1.67
1.08
0.82
1.25

918
1816
934
729

188

5
IV

Total Hydro
Grand Total

4397
26529

517.84
5998.81

1.18
2.26

Year: 2011-12
Table 163 Cost of generation from TNEB owned generating plants for the year 2011-12

Sl.
No.

Station

I
1
2
3
4
5
6
7
II
1
2
3
4
5
III
1
2
3
4
5
IV

Coal based
ETPS
TTPS
MTPS
NCTPS
MTPS stage III
NCTPS stage II
Total Coal
Gas Base
Kuttalam
Kovil Kalappal
Valuthur
BBGTPS
Total Gas
Hydro
Erode
Kundah
Kadamparai
Tirunelveli
Total Hydro
Grand Total

Net
Generation
(in MU)

VC. (Ps
/ unit

Total
VC
(Rs.in Crs)

Capacity
charges
(Rs.in
Crs)

1713
7576
6143
4383
2547
3837
26199

192.08
202.83
185.88
150.81

329.03
1536.64
1141.86
661.00

232.86
288.22
161.58
306.08

4630.75164

641
610
1154
60
2465

183.69
180.26
176.1
1546.24

117.75
109.96
203.22
92.77
523.70

Total
charges
(Rs.in Crs)

Cost (Rs
/ Unit)

1747.35

561.89
1824.86
1303.44
967.08
755.01
965.81
6378.10164

3.28
2.41
2.12
2.21
2.96
2.52
2.43

60.25
52.97
134.11
49.1
296.43

178.00
162.93
337.33
141.87
820.13

2.78
2.67
2.92
23.65
3.33

227.95
72.58
179.49
87.14
567.16
7765.39

2.43
0.40
1.92
1.16
1.28
2.35

937
1816
937
748
4438
33102

Year: 2012-13
Table 164 Cost of generation from TNEB owned generating plants for the year 2012-13

Sl.
No.

Station

Coal based
ETPS
TTPS
MTPS
NCTPS
MTPS stage III

1
2
3
4
5

Net
Generation
(in MU)

VC. (ps
/ unit

Total VC
(Rs.in
Crs)

Capacity
charges
(Rs.in
Crs)

1713
7576
6143
4383
3827

195.07
205.18
188.07
152.63

334.15
1554.44
1155.31
668.98

236.36
289.12
163.36
305.34

Total
charges
(Rs.in
Crs)

Cost (Rs /
Unit)

570.51
1843.56
1318.67
974.32
1026.31

3.33
2.43
2.15
2.22
2.68

189

6
7
II
1
2
3
4
5
III
1
2
3
4
5
IV

NCTPS stage II
Total Coal
Gas Base
Kuttalam
Kovil Kalappal
Valuthur
BBGTPS
Total Gas
Hydro
Erode
Kundah
Kadamparai
Tirunelveli
Total Hydro
Grand Total

7696
31338
641
610
1154
60
2465

183.69
180.26
176.1
1623.56

1090
1817
937
757
4601
38404

5447.64

1896.82

1611.08
7344.46

2.09
2.34

117.75
109.96
203.22
97.41
528.34

59.84
52.2
133.04
47.38
292.46

177.59
162.16
336.26
144.79
820.80

2.77
2.66
2.91
24.13
3.33

0
2189.28

210.55
73.54
179.95
87.80
551.84
8717.10

1.93
0.40
1.92
1.16
1.20
2.27

7.15.6 The abstract of station wise generation cost for the control period is as
below
Table 165 Abstract of station wise generation cost for the control period
2010-11
Sl.
No.

Station

I
1
2
3
4
5
6
II
1
2
3
5
III
1
2
3
4
IV

Coal based
ETPS
TTPS
MTPS
NCTPS
MTPS stage III
NCTPS stage II
Total Coal
Gas Based
Kuttalam
Kovil Kalappal
Valuthur
BBGTPS
Total Gas
Hydro
Erode
Kundah
Kadamparai
Tirunelveli
Total Hydro
Grand Total

2011-12
cost
per
unit
(Rs /
unit)

2012-13
cost
per
unit
(Rs /
unit)

cost per
unit
(Rs /
unit)

Total
Units
(in
MU)

561.89
1824.86
1303.44
967.08
755.01
965.81
6378.10

3.28017
2.41
2.12
2.21
2.96
2.52
2.43

1713
7576
6143
4383
3827
7696
31338

570.51
1843.56
1318.67
974.32
1026.30
1611.08
7344.46

3.33
2.43
2.15
2.22
2.68
2.09
2.34

641
610
1154
60
2465

177.99
162.92
337.32
141.87
820.1277

2.78
2.67
2.92
23.65
3.33

641
610
1154
60
2465

177.58
162.15
336.25
144.79
820.79

2.77
2.66
2.91
24.13
3.33

937
1816
937
748
4438
33102

227.95
72.58
179.49
87.14
567.16
7765.39

2.43
0.40
1.92
1.16
1.28
2.35

1090
1817
937
757
4601
38404

210.55
73.54
179.95
87.8
551.84
8717.10

1.93
0.40
1.92
1.16
1.20
2.27

Total
Units
(in
MU)

Total
cost (Rs
in
Crores)

1713
7576
6143
4383
0
0
19815

567.43
1827.91
1298.14
980.60
0.00
0.00
4674.08

3.31
2.41
2.11
2.24
0.00
0.00
2.36

1713
7576
6143
4383
2547
3837
26199

641
610
1006
60
2317

173.82
159.03
330.31
143.72
806.88

2.71
2.61
3.28
23.95
3.48

918
1816
934
729
4397
26529

152.98
196.64
76.91
91.31
517.84
5998.81

1.67
1.08
0.82
1.25
1.18
2.26

Total
Units
(in MU)

Total
cost (Rs
in
Crores)

Total
cost (Rs
in
Crores)

190

CHAPTER 8
8.1

Determination Annual Transmission Charges

8.1.1 Regulation 6 of TNERC (Terms and conditions for Determination of Tariff

for Intra-State Transmission / Distribution of Electricity under MYT frame
work) Regulations 2009 specifies the following:
6 (1) the State Transmission Utility / Transmission Licensee shall make
an application for determination of transmission tariff for each of the
control period in accordance with the provisions in Tariff Regulations
2005
8.1.2 Regulation 6 of TNERC Tariff Regulations 2005 specifies the following:
6. (1) The licensee may file the application for determination of tariff in
Form 1 in Annexure 1 to the TNERC Conduct of Business Regulations.
The tariff changes should normally be applied for to take effect from the 1st
day of ensuing financial year and hence the application shall be filed
before 30th November of Current Year along with Aggregate Revenue
Requirement (ARR).
(2) The application shall be accompanied by the fees specified in the
TNERC Fees and Fines Regulations and verified by an affidavit in Form 2
specified in Annexure 2 to the TNERC Conduct of Business Regulations.
(3) The application for determination of tariff for the existing Generating
Stations and Transmission System shall be accompanied by information in
the respective formats appended to these Regulations duly furnishing the
figures for the previous year, current year and ensuing year.
8.1.3 Regulation 14 of TNERC MYT Regulation specifies the following:
14 wherever the Licensee is functioning as an integrated utility, the
transmission cost is to be segregated and projected for each year of
control period.
8.1.4 The Commission in its order No.2 dated 15-05-2006, on Transmission and
wheeling charges, etc., had issued the following directives.

191

In the changing scenario, it is imperative that the function wise accounting

is maintained as a whole, to avoid various assumptions when called for to
furnish the function wise information for regulatory purposes.

The Regulation 62 of the TNERC Tariff Regulation specifies that The

transmission licensee / STU shall endeavour to maintain separate function
wise accounts for transmission system and furnish the revenue
requirement line wise, voltage wise, bay wise and load dispatch centre
wise

8.1.5 The TNEB had not complied with the above provisions while filing petition
for determination of tariff.
8.1.6 In the petition the TNEB has submitted a comprehensive Aggregate
Revenue Requirement for all functions, while the Regulations and
directives warrant the TNEB, to furnish informations for different functions
in distinct formats specified in the Regulations.
8.1.7 The Commission in its letter dated 22-01-2010, directed the TNEB to
segregate the transmission assets and liabilities, revenue and expenditure
and to furnish transmission charges separately.
8.1.8 The TNEB in their letter dated 24-02-2010, furnished the value of
transmission assets, depreciation, interest on loan capital and O & M
expenses.
8.1.9 The TNEB furnished the value of gross block of transmission assets at the
end of each year as detailed below:
Table 166 Gross block of transmission assets furnished by TNEB

Year

Gross block at the end of

the year (Rs. In Crores)
2007-08
7224.63
2008-09
7690.58
2009-10
8403.30
2010-11
9187.32
2011-12
10050.30
2012-13
11000.73
8.1.10 The value of gross block of the transmission assets as at the end of 200708 as per audited annual statement of accounts of TNEB for the year
192

2007-08 was Rs.6017.42 Crores. The TNEB was asked to clarify the
increased value of assets.
8.1.11 The TNEB furnished the following reply:
The Boards restructuring and bifurcation assignment has been awarded
to a consultant. The proposal is under study by the Board. The generation
and transmission assets have been segregated as per ESSAR 1985.
However, the distribution assets which contain transmission assets have
been segregated based on the ratio adopted by the consultant. Based on
the above, the segregation of assets for the year 2007-08 and 2008-09
has been arrived.
8.1.12 The Commission decides to adopt the value as per the audited accounts
of 2007-08. Once the transfer scheme is finalized and issued, the same
could become the basis of future tariff setting. The methodology adopted
by the Commission would not affect the interest of petitioner in any way.
8.1.13 The wind energy development circles are facilitating development of
private wind mill projects and establishing infrastructures to evacuate
power from private wind mills. Transmission assets created by these
circles have been accounted for as generation assets. The value of substations and transmission lines of voltages above 66 kV have been
segregated and included in the transmission assets for the purpose of
arriving at the annual transmission charges. The proposed capital
expenditures on transmission assets by these circles are also allotted to
transmission.
8.1.14 The TNEB furnished the capital investment plan for transmission assets
without voltage wise number of sub-stations and length of transmission
lines. The Commission directed the TNEB to furnish the details of
associated transmission system for the proposed addition to the
generation capacity.
8.1.15 The TNEB subsequently furnished the details of associated transmission
system. However, the corresponding (estimated) value of the transmission
system has not been furnished.

193

8.1.16 The Commission has

therefore provisionally adopted the value in the

capital investment plan for the purpose of capitalization.

8.1.17 The Commission fixes the value of gross block of transmission assets is
as below.
Table 167 Gross block of transmission assets fixed by TNERC

(Amount in Rs Crores)
2009-10
Closing balance at 6667.99*

2010-11

2011-12

2012-13

7632.80

8520.60

10241.32

887.80

1720.72

771.59

8520.60

10241.32

11172.21

the beginning
Add: Additions

964.81

Balance at the end 7632.80

of the year

* Rs.6518.71 at the end 2008-09 as per balance sheet plus Rs.149.28 Crores transferred
from wind mill assets.

8.1.18 Determination of annual transmission charges

(1)

Regulation 59 of TNERC Tariff Regulations 2005, specifies the following:

59 Transmission Tariff Charges
The tariff for transmission of electricity by a transmission system shall
comprise recovery of annual transmission charges consisting of the
following computed as per the principles outlined in Chapter III of these
Regulations.
(i) Interest on Loan Capital;
(ii) Depreciation
(iii) Operation and Maintenance Expenses;
(iv) Interest on Working Capital at normative availability; and:
(v) Return on equity:
The annual transmission charges computed as per this Regulation shall
be total aggregate revenue requirement of the STU / Transmission
licensee.

194

(2)

The various components of transmission charges have been determined

in the chapter referred to below:
Table 168 Elements of transmission charges

(3)

Sl. No

Fixed Charges component

Reference to chapter / para

Depreciation

6.5.5

Interest on Loan Capital

6.3.21

Return on Equity

6.4.7

Operation & Maintenance

Expenses

6.11.2

The total annual transmission charges shall be as below:

Table 169 Transmission Charges approved by TNERC

(Rs.in Crores)
Sl.

Particulars

TNEB

No

TNERC

2010-11

2011-12

2012-13

2010-11

2011-12

2012-13

Depreciation

351.97

387.64

427.20

267.57

310.93

351.95

Interest on Loan

822.85

1032.51

1160.53

1023.39

1094.49

1158.59

Return on Equity

149.65

192.77

235.89

102.15

88.52

94.68

O & M Expenses

462.80

481.30

500.55

487.71

521.36

558.02

Other Debits

7.28

5.98

6.04

Interest on Working

52.58

60.15

66.22

1839.85

2154.37

2390.39

1888.10

2021.28

2169.28

Capital
6

Total

Annual

Transmission
Charges

(4)

Regulation 59 of the Tariff Regulation specifies that the annual

transmission charges computed as per the Regulation shall be the total
annual revenue requirement of the STU / Transmission Licensee and the
following shall be deducted from the total revenue requirement to arrive at
the charges recoverable from the long term open access customer.
(a)

Transmission charges collected from the short-term Intra-State

open access customers, Captive power plant and generating
stations using non-conventional energy sources.
195

(b)

Income from other business to the extent of portion to be passed

on to the beneficiaries and

(c)

Reactive energy charges and transmission charges received from

CTU for use of facilities of licensee.

(5)

The short-term open charges and other income have been projected
based on the actuals for the year 2008-09.

(6)

The net provisional annual transmission charges to be recovered from the

distribution licensee after deducting short-term open access charges
collected, Income from other sources are tabulated as below:
Table 170 Net provisional annual transmission charges to be recovered from the
distribution licensee

(Amount in Rs Crores)
Sl.
No

Particulars

Total
Annual
Transmission
Charges
Less: Short-Term
Open
Access
Charges
Less: Misc. Income
Net
Annual
Transmission
Charges

(7)

2010-11

TNEB
2011-12

2012-13

2010-11

TNERC
2011-12

2012-13

1839.85

2154.37

2390.39

1888.10

2021.28

2169.28

97.26

99.20

101.19

5.00
1785.84

5.50
1916.58

6.00
2062.09

1839.85

2154.37

2390.39

The provisional transmission charges shall be revisited and finalized in

accordance with regulation 57 and 6 of Tariff Regulation, 2005.

196

CHAPTER 9
TARIFF FOR RETAIL DISTRIBUTION
9.1

Regulation 68 of the TNERC Tariff Regulations specifies the following:

68 Component of tariff for supply of electricity
(1) The charges for the electricity supplied by the Distribution licensee may include:(a) a fixed charges / Demand Charges;
(b) Charges for actual electricity supplied;
(c) a rent or other charge in respect of meter or electrical plant provided by the
Distribution licensee;
(2) Rent for meter provided by the licensee and other charges are treated as nontariff charges and shall be determined by the Commission in accordance with the
provision of Tamil Nadu Electricity Supply Code and Tamil Nadu Electricity
Distribution Code.
(3) Charges for actual electricity supplied and fixed charges are tariff related charges
and the Commission shall determine these charges on an application from the
Distribution licensee.

9.2

Under Regulation 69 (1) of the Tariff Regulation 2005, the Distribution

licensee shall file application for retail distribution of electricity along with
Aggregate Revenue Requirement (ARR).

9.3

Regulation 70 of the Tariff Regulations 2005 specifies the following:

70. The Aggregate Revenue Requirement of Distribution licensee
The Aggregate Revenue Requirement of Distribution licensee consists of the
following:(i)

Cost of Power Purchase

(ii)

Operation and Maintenance expenses

(iii)

Depreciation

(iv)

Interest and cost of finance

(v)

Income Tax

(vi)

Provision for Bad and Doubtful Debts

(vii)

Provision for Insurance

(viii)

Provision for contingency reserve

(ix)

other expenses

(x)

Return on equity / Reasonable rate of return

197

9.4

The components of ARR are discussed below:

9.4.1 Cost of Power Purchase

9.4.1.1

In the ARR the TNEB has claimed the following as power purchase
cost for the control period:
Particulars

2010-11

Power purchase

9.4.1.2

16527.84

2011-12

2012-13

15141.12

16440.10

The claim was examined with reference to the energy requirement and
source of purchase.

9.4.1.3

The power purchase cost admitted by the Commission is discussed in

chapter 5

9.4.1.4

The power purchase cost claimed by TNEB and admitted by the

Commission are as below:
Table 171 Power purchase cost admitted by TNERC

(Rs. in Crores)
TNEB
2010-11
Power

2011-12

TNERC
2012-13

16527.84 15141.12 16440.10

2010-11

2011-12

2012-13

16202.67 13835.73 11371.78

Purchase
cost

9.4.2 Annual Transmission Charges

9.4.2.1

The TNEB has claimed the charges relating to the transmission facility
along with the charges for other functions.

9.4.2.2

The Commission has determined the charges for the transmission

facilities of the TNEB separately in chapter 8.

9.4.2.3

The transmission charges are payable by the distribution licensee once

the transfer scheme under section 131 of the Act is given effect to. It is
therefore included in the ARR of the distribution licensee separately.

9.4.2.4

The quantum of transmission charges determined by the Commission

is as below:

198

Table 172 Annual transmission charges approved by TNERC

Particulars

2010-11

Annual Transmission

1785.84

2011-12

2012-13

1916.58

2062.09

charges (Rs. in Crores)

9.4.3 Fuel Cost

9.4.3.1

The TNEB has claimed the cost of coal, oil, lubricants, water charges,
station auxiliaries, etc. for all the generating stations owned by them.

9.4.3.2

The other cost like O & M, depreciation, Interest on loan, Return on

Equity, etc relating to the generating stations have been claimed
separately along with total expenses.

9.4.3.3

The Commission has determined two part tariff to generating stations

in chapter 7. The total cost of generation as per the generation tariff is
taken as transfer price and compared with the fuel cost claimed by the
TNEB as below:
Table 173 Fuel / generation cost approved by TNERC

(Rs.in Crores)
TNEB

Fuel cost
Cost

of

2010-11

2011-12

4723.40

5998.30

TNERC
2012-13

2010-11

2011-12

2012-13

5998.81

7765.39

8717.10

6829.55

generation

9.4.3.4

The Commission has segregated all other expenditure in the ARR

(except power purchase and fuel cost) function wise in chapter 6.

9.4.3.5

The expenses relating to generation and transmission are included in

the generation tariff and transmission charges respectively.

9.4.3.6

The various expenses allocated to distribution function are as below:

199

Table 174 Various expenses allotted to distribution functions by TNERC

(Rs.in Crores)
Sl.
No
1
2
3
4
5
6

Expenses

2010-11

O & M Charges
Depreciation
Interest on Loan
Other Debits
Return on equity
Total

2923.40
349.16
1428.07
9.56
133.94
4844.13

2011-12
3130.30
392.77
1324.72
7.30
108.11
4963.2

2012-13
3356.02
433.52
1475.21
7.46
116.91
5389.12

9.4.4 Income Tax: The TNEB has not made any claim for Income Tax in ARR,
as there no incidence for income tax liability.
9.4.5 Bad & Doubtful Debts: The TNEB is reported to be maintaining efficient
collection of 99.81% in 2008-09. The TNEB is maintaining accumulated
provision upto 2.5% of the sundry debtors at the end of the year towards
provision for doubtful dues. The provision in any year to maintain the level
at 2.5% is included in the other debits.
9.4.6 Provision for Insurance & Contingency Reserve: Regulation 30 of
TNERC Tariff Regulations 2005 specifies that the generating company
and licensee may adopt the practice of self insurance and a provision upto
0.50% of the capital cost shall be allowed by the Commission in their
revenue requirement.
9.4.7 Regulation 31 of TNERC Tariff Regulations specifies that the generating
and licensee shall provide and maintain a contingency reserve upto 0.50%
of the value of assets at the beginning of the year and the provision made
for the year will be allowed in their revenue requirement.
9.4.8 The TNEB has made a provision of 1% on the value of assets of
generating stations and included the provision in the administrative and
general expenses. No separate provision has been made for contingency
reserve. This has been admitted.

200

9.4.9 The comprehensive Revenue Requirement claimed TNEB is compared

with the revenue requirement admitted by the Commission for distribution
licensee.
Table 174 Revenue requirement approved by TNERC.

(Rs.in Crores)
TNEB
2011-12

2010-11
Power
Purchase
Cost
Transmission
Charges
Fuel cost /
Cost
of
generation
O
&
M
Expenses
Depreciation
Interest
on
Loan
Other Debits
RoE
Demand
Side
Management
Total ARR

2012-13

2010-11

16527.84 15141.12 16440.10

TNERC
2011-12

2012-13

16202.67

13835.73

11371.78

1785.84

1916.58

2062.09

5998.81

7765.39

8717.10

4723.40

5998.30

6829.55

3463.64

3602.19

3746.28

2923.40

3130.30

3356.02

1086.36
3464.99

1189.81
4032.05

1303.86
4571.18

349.16
1428.07

392.77
1324.72

433.52
1475.21

139.41
378.25

138.46
412.23

137.46
449.80

9.56
133.94
10.00

7.30
108.11
10.00

7.46
116.91
10.00

29783.89 30514.16 33478.23

28841.45

28490.90

27550.09

9.4.10 Regulation 80 (2) of the TNERC Tariff Regulations specifies the following
(1) The aggregate annual revenue requirement of the licensee shall be arrived at
after deducting the following from the total expenses:
(i)

Amount of other income including non tariff related charges as per regulation
68(2).

(ii)

Income from surcharge and additional surcharge from open access consumers.

(iii)

Wheeling charges recovered from the open access consumers

(iv)

Authorised portion of Income from other business engaged by the licensees for
optimum utilisation of assets.

(v)

Any revenue grant received from Government (other than subsidy)

201

9.5

Other Income

9.5.1 The TNEB has projected the following as other income (Misc. Income)

Table 175 Other income projected by TNEB (Rs

S.
No.

Particulars

in Crores)

2010-11

2011-12

2012-13

Interest on loans and advances to

employees

6.71

7.05

7.40

Income from investments

1.01

1.06

1.11

Belated payment surcharge collected

from consumers

21.29

22.36

23.47

Interest on Advance to Suppliers /

Contractors

0.24

0.26

0.27

Interest from Banks

0.01

0.01

0.01

Income from Sale of tender forms,

stores, Scraps, etc.

36.13

37.93

39.83

Rebate availed on Power Purchase Bills

259.66

270.04

280.84

Income from hiring vehicles to

employees and other welfare activities

0.11

0.12

0.13

Miscellaneous Receipts

97.41

102.28

107.40

10

Total

422.57

441.11

460.46

9.5.2 The major components of other income are belated payment surcharge,
and rebate availed on power purchase. These incomes are exclusively for
distribution function.
9.5.3 After allocating the other income based on the actual during previous
years to generation and transmission, the balance has been allocated to
distribution.
9.5.4 The total other income projected by TNEB has been accepted by the
Commission and allocated to various functions as detailed below:

202

Table 175 Total other income approved by TNERC

(Rs. In Crores)
Sl. No

Details

1
2
3

Generation
Transmission
Distribution
Total

2010-11

2011-12

37.05
5.00
380.52
422.57

37.05
5.50
398.55
441.11

201213
37.05
6.00
417.41
460.46

9.6 Non-Tariff Income

9.6.1 The TNEB has projected the following as Non-tariff revenue in ARR as
below:
Table 176 Projection of non-tariff revenue by TNEB

(Rs. In Crores)
Sl.
No.

Particulars

2010-11

2011-12

2012-13

Meter Rent

17.80

18.97

20.21

Recovery of theft of
power, etc.

34.94

41.92

50.31

Wheeling Charges

204.65

268.04

351.07

Other Miscellaneous
Charges collected from
consumers

354.36

407.52

468.65

Total

611.75

736.45

890.24

9.6.2 The wheeling charges include short-term open access charges. The shortterm open access charges for the control period has

been projected

based on the actual 2009-10 and deducted from the annual transmission
charges and the balance has been allocated to distribution as detailed
below:

203

Table 177 Allocation of STOA charges for the control period

(Rs in Crores)
Sl. No

Details

2010-11

Transmission

2
3

2011-12

2012-13

97.26

99.20

101.19

Distribution

514.49

637.25

789.05

Total

611.75

736.45

890.24

9.7 Net Aggregate Revenue Requirement

9.7.1 The net aggregate revenue requirement is arrived at as below:
Table 178 Net ARR approved by TNERC

(Rs in Crores)

TNEB
2010-11
Total ARR
Less: Other

2011-12

TNERC
2012-13

29783.89 30514.16 33478.23

2010-11

2011-12

2012-13

28841.45

28490.90

27550.09

422.57

441.10

460.46

380.52

398.55

417.41

611.75

736.45

890.24

514.49

637.25

789.05

28749.57 29336.61 32127.53

27946.44

27455.10

26343.63

Income
Less:

Non-

Tariff
Revenue
Net ARR

9.8 REVENUE RECEIPTS

9.8.1 In the ARR the TNEB has not furnished slab wise consumption.
9.8.2 The Commission in letter dated 22-01-2010 and 19-02-2010 directed the
TNEB to furnish slab wise consumption for all categories of consumer
wherever different tariff is prevalent for different slabs.
9.8.3 The TNEB in letter dated 23-02-2010 furnished slab-wise consumption for
domestic consumers for the control period based on the percentage in
each slab out of the total consumption for the year 2008-09. As the TNEB
proposed separate tariff for the bi-monthly consumption slabs of 201-400
and 401-600, the proposed consumption in these slabs for the control
period were called for. The TNEB in the letter dated 23-04-2010 furnished
bi-monthly consumption in these slabs.

204

9.8.4 The consumption and revenue with existing tariff is computed as below :
Table 179 Consumption and revenue with the existing tariff
2010-11
Category

consum
ption
(in MU)

2011-12

2012-13

Net
Revenue
(Rs in
Crores)

consum
ption
(in MU)

Net
Revenue
(Rs in
Crores)

consumpt
ion
(in MU)

Net
Revenue
(Rs in
Crores)

15959

7128.82

17292

7724.27

18739

8370.64

96

42.88

100

44.67

102

45.56

Government and aided

educational institution

260

111.95

275

118.41

294

126.59

Cinema Theatre &

Studios and Private
educational institutions
Places of Pub. Worship

774

333.27

827

356.09

881

379.34

1.32

1.32

1.32

Commercial

1744

1082.80

1901

1180.28

2072

1286.45

Lift Irrigation

0.45

0.45

0.45

18846

8701.50

20408

9425

22101

10210

16282.0
0
411

3828.40

17065

4013.27

17886

4208.08

15.70

428

16.41

447

17.15

1.40

1.75

2.10

1581

541.49

1625

556.56

1669

571.63

Government and aided

educational institution

245

109.48

231

103.40

208

93.27

Cinema Theatre &

Studios and Private
educational institutions

141

62.91

185

82.31

242

107.39

Places of Pub. Worship

98.00

31.02

104

32.91

110

34.82

Cottage and Tiny

Industries

117.00

30.58

122

31.85

128

33.30

Power Loom

855.00

174.33

889

181.08

924

189.19

Industries

4089.00

1902.83

4242

1973.56

4401

2047.61

Agriculture

11206.0
0
4555

266.55

11436

272.02

11666

277.49

2711.09

4874

2899.03

5215

3099.85

19

13.30

33

23.10

56

39.20

HIGH TENSION
Industries including
railway traction
Railway Traction

Supply to Pondicherry
Supply to other states
Total HT
II

LOW TENSION (Lakhs)

Domestic
Huts
Bulk Supply
Public Lighting

Commercial
Temporary Supply

205

Total LT

39603.0
0

9689.08

41239.
00

10187.25

42958.00

10721.08

58449

18390.58

61647

19612.74

65059.00

20931.43

Total HT and LT

9.8.5 The revenue at the existing tariff projected by TNEB is compared with the
revenue projected by the Commission as below:
Table 180 Revenue at the existing tariff projected by TNERC

TNEB

2010-11
consumption
Net
Revenue
(in MU)
(Rs in
Crores)
60751 19331.77

TNERC

9.9.

58449

18390.58

2011-12
consumption Net
Revenue
(in MU)
(Rs in
Crores)
65610 20728.05
61647

2012-13
consumption
Net
Revenue
(in MU)
(Rs in
Crores)
70817
22509.52

19612.74

20931.43

65059

Revenue Gap

9.9.1 The revenue gap is the difference in the revenue requirement and the
revenue with the existing tariffs, which is to be bridged by a revision in the
tariff. The Commission has computed the TNEBs revenue gap for the
years 2010-11,2011-12 and 2012-13 as below:

Table 181 Revenue gap computed by TNERC (Rs

in Crores)

TNEB
2010-11

2011-12

TNERC
2012-13

Revenue required 28749.57 29336.61 32127.53

from
sale
of
electricity
Revenue
with 19331.77 20728.05 22509.52
existing tariff
Revenue Gap
9417.80
8608.56
9618.01

9.10

2010-11

2011-12

2012-13

27946.44

27455.10

26343.63

18390.58

19612.74

20931.43

9555.86

7842.36

5412.20

Approach to Tariff Rates

9.10.1 The Commission has accepted the revised tariff rates proposed by the
TNEB except the following
(1) Railway Traction

206

(a) The Southern Railway made the following submission before the
Commission
(i) The recorded maximum demand in the traction substations varies
depending on the number of trains running in the feeding zone. The
traffic pattern is not constant due to goods trains, seasonal trains
and bunching of trains due to force majeure conditions.
(ii) Due to varying nature of loads which is not practicable to control
the recorded demand within the band of 90% to 100% of contracted
maximum demand.
(iii) The trains while on the run from the originating station to the
destination runs through the feeding zones of several contiguous
traction sub-stations registering demand at every feeding point;
but the load on the grid remains fairly constant. Thus the same train
registers demand at multiple points causing payment of demand
charges at multiple points for the same train.
(b) The Commission may consider the following:
(i) Simultaneous maximum demand of contiguous traction substations connected to the same grid may be adopted for billing
purpose: or
(ii) The demand charges may be reduced by 33%: or
(iii) A single part tariff with energy charges (without demand charges)
not exceeding the average rate of realization from EHT industrial
consumer (in two part tariff).
9.10.2 The Commission Considered the submission and decided the following:
(1) The single part tariff cannot be granted for the Railway traction service
as the services are having specific contract demand.
(2) The simultaneous demand recorded in the several contiguous traction
sub-stations (service connection point) cannot be assigned to a single
point for the purpose of billing.
(3) The demand charges for the Railway Traction is revised and fixed at
Rs.250 perkVA per month.

207

(4) Railways demand to classify the Railway Level Crossing along with
the tariff applicable for Public Lighting is accepted.

9.10.3 LT Tariff IC (Bulk Supply)

9.10.3.1 The TNEB has proposed to revise the tariff from Rs.3.50 per unit to
Rs.5.00 per unit.
9.10.3.2 This tariff is applicable to LT bulk supply for railway colonies, plantation
worker colonies, defence colonies, Police Quarters and other notified
categories as decided by the Commission from time to time.
9.10.3.3 The industrial units drawing power at HT supply are extending the supply
to the quarters and paying at rate applicable for LT I C. Hence the rate is
fixed at the rate corresponding to the charges applicable to HT industries
i,e Rs.4.00 per unit.

9.10.4 IT Industries
9.10.4.1 The TNEB in their letter dated 12-4-2010 have informed the
Commission as follows:
Government of Tamil Nadu was addressed for the provision of tariff
subsidy to charge Basic Service providers and IT Enabled service under
Industrial tariff. Since the chance of getting subsidy from Government of
Tamil Nadu for this category appear to be meagre, these services may be
charged under Industrial Tariff as per IT policy of Government. The
revenue impact has been furnished separately.
2.0. In this connection, it is to be stated that as per Information
Communication Technology (ICT) Policy of Tamil Nadu 2008 (copy
enclosed for ready reference), under para (5), the following definition of
terminologies are used:
3.0. IT ITES Companies will include IT Service (ITS), IT Enabled
Services (ITES), Private Communication Providers (PCPS), software
Industries, IT maintenance and servicing units and hardware units as
covered in IT Policy 1997.
a) IT Services are broadly defined as systems integrations, processing
services, information services outsourcing, packaged software support
and installation, hardware support and installation.

208

b) IT enabled services are human intensive services that are delivered

over telecom networks or the internet to the range of business
segments which will include
-

Medical Transcription
Legal Database processing
Digital content development / animation
Remote maintenance
Back office operation Accounts / Financial service
Data processing
Call centers
Engineering and Design
Geographic Information service Human Resource Services
Insurance claim processing
Payroll Processing
Revenue Accounting
Support Centers
Website Services
Business Process Outsourcing (BPOs)

c) Private Communication providers include Class A, Class B and Class

C Internet Service Providers, Right of way Memorandum of
Understanding (MOU) holders, Basic Service Providers and value
added service providers like the Common Service Centres operators in
the State
4.0 In the same policy under para 9.5 (Power Tariff), the Government of
Tamil Nadu has stated as follows:
Tamil Nadu Electricity Board will provide power supply for Low tension units as
per LT Tariff III C and for High tension units as per HT Tariff I A to Information
Technology Industries whether set up in IT-ITES Parks or in stand-alone
locations and also ensure quality of power as required by the industry. Hence for
the purpose of power tariff, IT (as defined above), maintenance and servicing
units and hardware units will be treated as Industrial and not commercial
consumers and electricity tariff as applicable to industry consumers will be
charged.
5.0 Further, Information and Communication Technology (ICT) has

been a

major growth driver for the Indian economy in the last few years and has
significant potential for growth in the coming years. Tamil Nadu has

been

209

amongst the top three states in terms of ICT investments and production. It has
been emerged as a hub for software, hardware and R&D. IT-ITES forms an
integral part of ICT with tremendous potential for employment not only in Tamil
Nadu but abroad also which will, in turn, fetch more revenue to our state.
6.0 Considering the above facts, it is requested that IT-ITES companies as
defined in Para 5, 5 (a), 5(b) and 5 (c), maintenance and servicing units and
hardware units as per Section 9.5 of ICT Policy 2008 may be treated as Industrial
and not Commercial consumers.
7.0 Further, it has

been noticed that some of the IT companies have also

permitted or authorised on outsourcing basis certain commercial organisations to

run certain services such as catering services, ATM counters, Bank branches,
Departmental Stores, Fast food outlets, Mobile phone stores, Book stalls, etc.,
inside their premises. These activities are not directly related to IT activities even
though may be for captive usage and which are essentially commercially in
nature, are being supplied with power for HT supply, which is provided
exclusively for Industrial activities.
8.0 In view of the above, the following are placed before Honble Commission for
consideration.
Facilities like canteen, ATM, Gym, Bank, etc. created in the campus are meant
predominantly for the use of the employees may be billed under the category of
IT tariff. However if the facilities are mainly for the use of general public
commercial tariff may be charged.
9.0 Considering the above facts, it is requested that IT-ITES companies as
defined in para 5, 5(a), 5(b) and 5(c), maintenance and servicing units and
hardware units as per Section 9.5 of ICT Policy 2008 may be treated as
Industrial. However, if the facilities narrated above are mainly for the use of
general public, commercial tariff may be charged. Accordingly, appropriate order
may kindly be passed and the same may be communicated.

210

9.10.4.2 The sum and substance of their letter is that IT-ITES Companies,
maintenance and servicing units and hardware units as contained in the
Information and Communication Technology Policy 2008 of the
Government of Tamil Nadu may be treated as Industrial and not
Commercial consumers.
9.10.4.3 The Commission held a meeting on 29-6-2010 with the Secretaries of
Finance, Energy and Information and Technology Departments and the
Chairman of the Tamil Nadu Electricity Board, wherein this subject
figured. The Commission wanted to know from the Government whether
the power tariff announced in the ICT Policy 2008 of the Government of
Tamil Nadu could be given effect to in the tariff order. The Secretaries to
Government informed the Commission that a view would be taken by the
Government and communicated to the Commission shortly.

9.10.4.4 The Secretary, Energy Department has

informed the Tamil Nadu

Electricity Board in his letter dated 20-7-2010 as follows:The Government at the current juncture proposes to maintain the status
quo and continue with the existing tariff classifications for Information
Technology Services / Information Technology Enabled Services and
private communication providers. TNERC may be informed accordingly.
9.10.4.5 The Chairman, TNEB in his letter dated 22-7-2010 has informed the
Commission as follows:In continuation to the letter cited under reference, the following are
submitted2.0
The Government at this current juncture proposes to maintain the
status quo ante and continue with the existing tariff classifications for
Information Technology Services,
Information Technology Enabled

211

Services and private communication providers. A copy of the letter

received from Government is enclosed for ready reference.
3.0
Under the above circumstances it is submitted that tariff for HT and
LT of Information Technology Services alone may kindly be continued in
HT Tariff IA / LT Tariff III B respectively and HT and LT services of IT
Enabled services / private communication providers may kindly be
continued in HT Tariff III / LT Tariff V respectively as at present.
4.0
TNEB shall also request for most urgent orders on its tariff revision
proposal presently under consideration by the Honble TNERC.

9.10.4.6 The latest proposal of the TNEB is that HT and LT service connections
of Information Technology Services may be granted HT Tariff I A / LT
Tariff III B and HT / LT services of IT Enabled Services / private
communication providers may be continued in HT Tariff III / LT Tariff V.
9.10.4.7 Therefore, the Commission decides to adopt HT Tariff I A / LT Tariff III B
for Information Technology Services as defined in the Information
Communication Policy (ICT Policy) 2008 of Government of Tamil Nadu.
The definition is reproduced below:
IT services are broadly defined as systems integration, processing
services, information services outsourcing, packaged software support
and installation, hardware support and installation.
9.10.4.8 HT / LT services of IT Enabled Services / private communication
providers will be charged under HT Tariff III / LT Tariff V.
9.10.5 Hospitals run by charitable trust which offers totally free treatment for all
categories of patients is treated on par with government hospitals and
classified under LT Tariff II B (1)
9.10.6 The crches and recreation centers run by plantations for the benefit of
plantation workers are classified under LT Tariff II B (1)

212

9.10.7 The TNEB has proposed to revise the tariff for cinema theatres, studios
from Rs.4.40 per unit to Rs.5.00 per unit and for private colleges from
Rs.4.40 per unit to Rs.6.00 per unit.
(1) There were objections for the proposal of charging higher tariff to
education institutions than the charges for cinema theaters and studios.
(2) The Commission has decided to bring both the consumer categories in
one tariff category and charge at Rs.5.50 per unit.
9.10.8 The activities of horticulture, mushroom culture, fish culture, are brought
under LT Tariff III A (1) where ever the connected load does not exceed 10
HP.
9.10.9 The braided cord manufacturing activities are brought under LT Tariff III A
(2) as the activities are similar to power looms and had been earlier
classified along with power loom.
9.10.10

Under LT Commercial category, a new slab of 0 to 50 units monthly

or 0 to 100 units bimonthly has been introduced with the tariff of Rs.4.30
per unit considering the demand of petty shop consumers.

9.11

TARIFF SCHEDULE

9.11.1 TARIFF FOR HIGH TENSION CONSUMERS

9.11.1.1 General Provisions Applicable for High Tension Supply:(1) Any High Tension Supply involving a sanctioned demand of 5000 kVA and
above shall be given supply at 33 KV and above.
(2) In the case of existing High Tension consumers whose sanctioned
demand exceeds 5000kVA and who do not avail themselves of supply at
the voltage indicated in item (1) they shall be charged an extra levy of 10
213

paise per KWH over and above the normal tariff for the entire energy
consumed. This extra levy is applicable to all categories of HT consumers
till they avail supply at the specified voltage.
(3) Low Power Factor Surcharge:

In respect of High Tension service

connections the average power factor of the consumers installation shall

not be less than 0.90. Where the average power factor of High Tension
service connection is less than the stipulated limit of 0.90 the following
compensation charges will be levied.
Below 0.90 and up to 0.85

Below 0.85 to 0.75

Below 0.75

One per cent of the current

consumption
charges
for
every
reduction of 0.01 in power factor from
0.90
One and half per cent of the current
consumption
charges
for
every
reduction of 0.01 in power factor from
0.90
Two per cent of the current
consumption
charges
for
every
reduction of 0.01 in power factor from
0.90

(4) Billable Demand: In case of two part tariffs, maximum Demand Charges
for any month will be levied on thekVA demand actually recorded in that
month or 90% of the sanctioned demand which ever is higher.
Provided, that whenever the restriction and control measures are in force,
the billable demand in case of two part tariff for any month will be the
actual recorded maximum demand or 90% of demand quota, as fixed from
time to time through restriction and control measures, whichever is higher.
(5) In the case of supply under HT Tariff IA, IIA, and III, the use of electricity
for bonafide purpose of lighting, heating and power loads in the residential
quarters within the premises shall be metered separately by the
consumers taking HT supply and paid to the Board at LT Tariff IC. The
units shall be deducted from the total number of units registered in the
main meter of HT supply for billing purposes.
214

9.11.2 HIGH TENSION TARIFF I A:

Tariff
category

Tariff
Demand

Energy charge in

Charge in

Paise per

Rs/KVA/

kWh(unit)

month
High Tension
Tariff I A

300

400

9.11.2.1 This tariff is applicable to all industrial establishments and Registered

factories which includes Tea Estates, Textiles, Fertilizers, Salem Steel
Plant, Heavy Water Plant, Chemical plant, common effluent treatment
plant, Cold storage units, Information Technology Services
Information Technology Services as defined in the Information
Communication Policy (ICT Policy) 2008 of Government of Tamil
Nadu. The definition is reproduced below:
IT services are broadly defined as systems integration, processing
services, information services outsourcing, packaged software support
and installation, hardware support and installation.
9.11.2.2 The HT Industrial consumers (HT IA) shall be billed at 20% extra on the
energy charges for the energy recorded during peak hours.

The

duration of peak hours shall be 6.00 A.M to 9.00 A.M and 6.00 P.M to
9.00 P.M.
9.11.2.3 The HT Industrial Consumers (HT I A) shall be allowed a reduction of
5% on the energy charges for the consumption during 10.00 P.M to 5.00
A.M as an incentive for night consumption.
9.11.2.4 The consumption of electrical energy by the HT Industrial Consumers
under HT IA having Arc furnaces will be charged an additional energy
charge of 15% on the HT IA tariff.

215

9.11.2.5 High Tension Industries under Tariff I-A having arc, induction furnaces or
steel rolling process the integration period for arriving at the maximum
demand in a month will be fifteen minutes.
9.11.2.6 If the HT consumer under this category needs to extend LT supply within
their area of operation for any commercial purposes, they have to inform
TNEB suitably and meter such consumption separately and pay at the
appropriate LT Commercial Tariff.

9.11.3 HIGH TENSION TARIFF I B RAILWAY TRACTION

Tariff
category

Tariff
Demand Charge Energy charge in Paise
in Rs/KVA/

per kWh(unit)

month
High Tension

250

Tariff I B

400

This tariff is applicable to railway traction.

9.11.4 HIGH TENSION TARIFF II-A
Tariff
Category

Tariff
Demand Charge
Energy charge in
in Rs/KVA/ month Paise per kWh(unit)

HT Tariff
IIA

200

400

9.11.4.1 The tariff is applicable to Government and aided educational

institutions, Hostels run by such educational institutions, Government
Hospitals,

Hospitals

under

the

control of

Panchayat

Unions,

Municipalities or Corporations, Veterinary Hospitals, Leprosy SubCentres, Primary Health Centres. Health Sub-Centres, Orphanages,
Public Libraries, Water works, Public Lighting, , Public Sewerage

216

Works by Government/local Bodies, Public Water Supply by New

Tirupur Area Development Corporation, Electric crematorium by local
bodies, Laboratories, Research institutions, , Ministry of defence and
Avadi CRPF establishment, Desalination plant at Kudankulam Nuclear
power plant.
9.11.4.2 If the HT consumer under this category needs to extend LT supply
within their area of operation for any commercial purposes, they shall
inform TNEB suitably and separately meter such consumption and pay
at the applicable LT Commercial tariff.
9.11.5 HIGH TENSION TARIFF II B
Tariff

Tariff
Category

Demand Charge

Energy charge in

in Rs/KVA/ month

Paise per kWh(unit)

HT Tariff II

200

450

9.11.5.1 The tariff is applicable to Private educational institutions and hostels

run by them, Studios, Cinema Theatres.
9.11.5.2 If the HT consumer under this category needs to extend LT supply
within their area of operation for any commercial purposes, they shall
inform TNEB suitably and separately meter such consumption and pay
at the applicable LT Commercial tariff.

9.11.6 HIGH TENSION TARIFF II-C

Tariff
Category

HT Tariff
II-C

Tariff
Demand
Energy charge
Charge in
in Paise per
Rs/KVA/ month kWh(unit)
125

280

217

9.11.6.1 This tariff is applicable to actual places of public worship, mutts, and
religious institutions ,
9.11.6.2 If the HT consumer under this category needs to extend LT supply within
their area of operation for any commercial purposes, they shall inform
TNEB suitably and separately meter such consumption and pay at the
applicable LT commercial tariff.

9.11.7 HIGH TENSION TARIFF III

Tariff
Category

Demand
Charge in
Rs/KVA/
month
300

HT Tariff III

Tariff
Energy charge in
Paise per
kWh(unit)
580

9.11.7.1 This tariff is applicable to all Commercial Establishments and other

categories of consumers not covered under High Tension Tariff IA, IB
IIA, IIB, IIC and IV.
9.11.7.2 IT Enabled Services / private communication providers will be charged
under this tariff
9.11.7.3 Industries requiring HT supply shall be charged under this tariff during
construction period.

9.11.8 HIGH TENSION TARIFF IV

Demand

Energy charge

Tariff

Charge in

in Paise per

Category

Rs/KVA/

kWh(unit)

month
HT Tariff IV

Nil

50

218

This tariff is applicable to the Lift Irrigation Societies for Agriculture registered under
Co-operative Societies or under any other Act.

9.11.9 TARIFF FOR LOW TENSION CONSUMERS

9.11.10

LOW TENSION TARIFF I-A:

Tariff

Low
Tension
Tariff I-A

Consumption slabs Energy

Range in kWh(units) and charges in
billing period (one or paise / kWHr
two months)
From 0 to 25 units per
110
month (or) 0 to 50 units
for two months
From 26 to 50 units per
130
month / 51 to 100 units for
two months
From 51 to 100 units per
260
month / 101 to 200 units
for two months
From 101 to 300 units per
350
month / 201 to 600 units
for two months
From 301 units and above
575
per month / 601 units and
above for two months

Fixed charges
(Rupees /
Month)

Monthly
minimum (in
Rupees)

20
5

This tariff is applicable generally for domestic purposes of lights and fans
including radio/TV and other home appliances. The tariff is also applicable to the
following category of services
(1) Handlooms in residences of handloom weavers (regardless of the fact
whether outside labour is employed or not) and to handlooms in sheds
erected where energy is availed of only for lighting and fans.
(2) Public conveniences maintained and run by the local bodies and by such
other organisations

219

(3) Community Nutrition Centres and Block Offices of Tamil Nadu Integrated
Nutrition Projects.
(4) Anganwadi Centres, Nutritious Meal Centres and School Buildings
associated with the Government Welfare Schemes and Electric
crematorium by local bodies.
(5) Old Age Home, Leprosy Centre run by charitable institutions rendering
free service.
(6) Consulting Rooms of any professionals attached to the residences of
such professionals provided no trading is undertaken or no motive power
is used in the Consulting Room.
(7) All consumers under this category, shall have ISI marked motor and
motor loads of 3 HP and more shall install adequate power factor
improvement capacitors (ISI marked) Non compliance shall invite
compensation charges as per TNERC regulations.
9.11.11
Tariff

LOW TENSION TARIFF I-B:

Description

Low

Till installation of Energy

Tension

Meter

Energy

Fixed charges

charges in

(Rupees /

paise / kWHr

Month)

Monthly
minimum (in
Rupees)

Rs. 10 / Month

Tariff I-B
On Installation of Energy

50

Nil

10

Meter

This tariff is applicable to huts in Village Panchayats and special grade

panchayats, houses constructed under Jawahar Velai Vaiipu Thittam, TAHDCO
and Kamarajar Adi Dravidar housing schemes and huts in Nilgiris District.
This tariff is applicable subject to following conditions

220

(1) Hut means a living place not exceeding 250 square feet area with mud
wall and the thatched roof / tiles / asbestos / metal sheets like corrugated
G.I.sheets for roofing.
(2) Only one light not exceeding 40 watts shall be permitted per hut.
(3) Wherever, colour TV has

been supplied by the Government to BPL

family, one light not exceeding 40 Watts and one 14" colour TV not
exceeding 70 Watts (Total 110 watts) shall be permitted per hut.
(4) Whenever the norms prescribed in (1) to (3) above are violated, the
service category shall be immediately brought under Low Tension Tariff
I-A and billed accordingly
LOW TENSION TARIFF I-C:

9.11.12
Tariff

Energy charges
in paise / kWHr
Low Tension
400
Tariff I-C
(1)

Fixed charges
(Rupees / Month)
Nil

Monthly minimum
(in Rupees)
50

This tariff is applicable to the LT bulk supply for railway colonies,

plantation worker colonies, defence colonies, Police Quarters.

(2)

All consumers under this category shall have ISI marked motor and
motor loads of 3 HP and more shall install adequate power factor
improvement capacitors (ISI marked). Non compliance shall invite
compensation charges as per Tamil Nadu Electricity Regulatory
Commission regulations.

9.11.13
Tariff

LOW TENSION TARIFF II-A:

Description

Low
Village / Town
Tension Panchayat
Tariff IIA
Municipality /
Corporation

Energy
charges in
paise / kWHr
340

Fixed charges
(Rupees /
Month)
Nil

350

Nil

Monthly
minimum (in
Rupees)
50

50

221

(1)

This tariff is applicable to Public Lighting, Public Water Supply and

Public Sewerage System belonging to village/Town Panchayats
Township areas, Municipalities, Municipal Corporations, Railway level
crossing, TWAD Board, private agriculture wells hired by CMWSSB,
village/Town Panchayats Township areas, Municipalities, Municipal
Corporations and TWAD Board to draw water for public distribution,
Public Water Supply by New Tirupur Area Development Corporation
and separate service connection for streetlight in SIDCO and other
Industries Department.

(2)

All consumers under this category shall have ISI marked motor and
motor loads of 3 HP and more shall install adequate power factor
improvement capacitors (ISI marked).

Non-compliance shall invite

compensation charges as per Tamil Nadu Electricity Regulatory

Commission regulations.
9.11.14

LOW TENSION TARIFF II-B (1)

Tariff

Low
Tension
Tariff IIB (1)

(1)

Energy
charges in
paise / kWhr
480

Fixed charges
(Rupees /
Month)
20

Monthly
minimum (in
Rupees)
50

This tariff is applicable to Government and Government aided

Educational Institutions, Hostels run by such Educational Institutions,
Hostels run by Adi-Dravidar and Tribal Welfare, Backward Class
Welfare Department and other Government agencies, Government
Hospitals, Hospitals under the Control of the Panchayat Unions,
Municipalities and Corporations, Veterinary Hospitals, Leprosy SubCenters, Primary Health Centers, Health Sub-Centers, Laboratories,
creches and recreation centers run by plantations, Research Institutes,

222

Orphanages, Public Libraries, Homes for Destitute and Old people,

Flood Lighting arrangements in the Rock Fort Temple, its environs and
the roads and pathways leading to temple at Tiruchillapalli, Emergency
accident Relief centers on highway, Rehabilitation centre for mentally
ill, Terminal cancer care centre giving free treatment. Hospitals run by
charitable trust which offers totally free treatment for all categories of
patients on par with government hospitals.
(2)

All consumers under this category, shall have ISI marked motor and
motor loads of 3 HP and more shall install adequate power factor
improvement capacitors (ISI marked) Non compliance shall invite
compensation charges as per Tamil Nadu Electricity Regulatory
Commission regulations.

9.11.15

LOW TENSION TARIFF II-B (2)

Tariff

Low

Energy

Fixed charges

Monthly

charges in

(Rupees /

minimum (in

paise / kWHr

Month)

Rupees)

550

20

50

Tension
Tariff

II-B

(2)
(1)

This tariff is applicable to Studios, Cinema Theatres, Private

educational institutions

(2)

All consumers under this category, shall have ISI marked motor and
motor loads of 3 HP and more shall install adequate power factor
improvement capacitors (ISI marked) Non compliance shall invite
compensation charges as per Tamil Nadu Electricity Regulatory
Commission regulations.

223

9.11.16

LOW TENSION TARIFF II-C:

Tariff

Low

Energy

Fixed charges

Monthly

charges in

(Rupees /

minimum (in

paise / kWHr

Month)

Rupees)

Tension

300

10

50

Tariff II-C

(1) This tariff is applicable to actual places of public worship, religious mutts,
religious institution, Goshalas run by charitable trusts.
(2) All consumers under this category shall have ISI marked motor and motor
loads of 3 HP and more shall install adequate power factor improvement
capacitors (ISI marked).

Non-compliance shall invite compensation

charges as per Tamil Nadu Electricity Regulatory Commission regulations.

9.11.17
Tariff

LOW TENSION TARIFF III-A (1):

Consumption

slabs

Energy

Fixed charges

Monthly

Range in kWh(units) and charges in

(Rupees /

minimum (in

billing period (one or paise / kWHr

Month)

Rupees)

two months)
Low

From 0 to 250 units per

Tension

month ( or)

180

30

60

Tariff III- 0 to 500 units for two

A (1)

months
From 251 to 750 units per
month ( or)
501 to 1500 units for two
months
From 751 and above per
month ( or)
1501 and above for two
months

270

350

224

(1)

This tariff is applicable to cottage and tiny industries, micro enterprises

engaged in the manufacture or production of goods pertaining to any
industries specified in the first schedule to Industries (Development and
Regulations) Act 1951 (Central Act 65 of 1951)..

(2)

The intending consumers applying for service connection under LT Tariff

III A (1) claiming to have established the micro enterprise engaged in the
manufacture or production of goods (with connected load not exceeding
10 HP) shall produce the acknowledgement issued by the District
Industries Center under the Micro Small and Medium Enterprises
Development Act, 2006 ( Act 27 of 2006 ) as proof for having filed
Entrepreneurs Memorandum for setting up of Micro Enterprises for
manufacture or production of goods with District Industries Center under
whose jurisdiction the Enterprise is located.

(3)

The existing consumers who are classified under LT Tariff III A (1) based
on the SSI / Tiny Industries Certificate may be continued to be charged
under the same tariff till next tariff revision.

(4)

This tariff is also applicable to small gem cutting units, sericulture,

floriculture, Dairy units horticulture, mushroom culture, fish culture, where
the connected load does not exceed 10 HP

(5)

Supply to welding sets has to be classified under Low Tension Tariff IIIB.

(6)

All consumers under this category shall have ISI marked motor and motor
loads of 3 HP and more shall install adequate power factor improvement
capacitors (ISI marked).

Non-compliance shall invite compensation

charges as per Tamil Nadu Electricity Regulatory Commission regulations.

225

9.11.18

LOW TENSION TARIFF III-A (2) :

Tariff

Consumption slabs Energy

Range in kWh(units) and charges in
billing period (one or paise / kWHr
two months)
Low
From 0 to 250 units per
Tension month ( or)
140
Tariff III- 0 to 500 units for two
A (2)
months
From 251 to 750 units per
month ( or)
225
501 to 1500 units for two
months
From 751 and above per
month ( or)
250
1501 and above for two
months
(1)

Fixed charges
(Rupees /
Month)

30

Monthly
minimum (in
Rupees)

60

The tariff is applicable to power looms, Braided Cords Manufacturers,

related ancillary tiny industries engaged in warping, twisting, and
winding.

(2)

The connected load shall not exceed 10 HP under this category.

(3)

All consumers under this category shall have ISI marked motor and
motor loads of 3 HP and more shall install adequate power factor
improvement capacitors (ISI marked).

Non-compliance shall invite

compensation charges as per Tamil Nadu Electricity Regulatory

Commission regulations.
9.11.19
Tariff

LOW TENSION TARIFF III-B:

Consumption
slabs
Energy
Range in kWh(units) and charges in
billing period (one or two paise / kWHr
months)
Low
From 0 to 750 units per
400
Tension
month ( or)
Tariff III-B 0 to 1500 units for two
months
From 751 and above per
500
month ( or)
1501 and above for two
months

Fixed charges
(Rupees /
Month)

Monthly
minimum (in
Rupees)

30
40 / kw

30

226

(1)

This tariff is applicable to all industries not covered under LT Tariff III A (1)
and III-A (2), Common effluent treatment plants, Dairy units, Coffee
grinding, Ice factory, body building units, saw mill, rice mills, flour Mills,
prawn farming, poultry farms, fish culture, battery charging units and
Information Technology Services
Information

Technology

Services

as

defined

in

the

Information

Communication Policy (ICT Policy) 2008 of Government of Tamil Nadu.

The definition is reproduced below:
IT services are broadly defined as systems integration, processing
services, information services outsourcing, packaged software support and
installation, hardware support and installation.
(2)

Supply to welding sets shall be charged 15% extra.

(3)

All Services under this category with a connected load of 25 HP and

above should maintain a power factor of not less than 0.85. Where the
average power factor of Low Tension Service connection is less than the
stipulated limit of 0.85 the following compensation charges will be levied.
Below 0.85 and up to 0.75

Below 0.75

9.11.20

One per cent of the current

consumption charges for every
reduction of 0.01 in power factor from
0.85.
One and half per cent of the current
consumption charges for every
reduction of 0.01 in power factor from
0.85

LOW TENSION TARIFF IV:

Tariff

Description

Low
Tension
Tariff IV

Till installation of Energy

Meter
On installation of Energy
Meter

Energy
Fixed charges
Monthly
charges in
(Rupees /
minimum (in
paise / kWHr Month)
Rupees)
Rs.250 per HP per Annum

20

Nil

25

227

(1)

This tariff is applicable to Agriculture and the Government Seed Farms,

pump sets of Tamil Nadu Agriculture university, pump sets of Research
centre of Tamil Nadu Forest department pump sets of Government
coconut nurseries and pump sets of Government coil seed farms

(2)

This tariff is applicable irrespective of owner ship of land if the usage of

electricity is for agriculture and the usage is restricted to the owned/leased
area

(3)

All the new services under this category shall have ISI marked motors and
power factor compensation capacitors to qualify for the supply. All the
existing services should be provided with power factor compensation
capacitors within one year.

Non-compliance to provide the capacitors

shall invite compensation charges as per the Tamil Nadu Electricity

Regulatory Commission regulations.
(4)

The services under this tariff shall be permitted to have lighting loads up to
50 watts per 1000 watts of power connected subject to a maximum of 150
watts inclusive of wattage of pilot lamps. Lighting the farm or the field
around the pump sets should be through energy saving compact
fluorescent lamps only. Extra lighting over and above the limit and for
uses other than lighting shall be through a separate service under LT
Tariff V only.

(5)

Agriculturists shall be permitted to use the water pumped from the well
and stored in overhead tanks for bonafide domestic purposes in the
farmhouse. The farmhouse shall be in close proximity not exceeding 50
meters from the well.

(6)

Sugar cane crushing motors and allied equipments shall be permitted to

be

connected and operated only when the respective agricultural services are
provided with energy meters. When such services are not provided with
meters; the consumer shall immediately opt for the metering.

228

9.11.21
Tariff

Low
Tension
Tariff V

LOW TENSION TARIFF V:

Consumption slabs Energy
Range in kWh(units) and charges in
billing period (one or paise / kWHr
two months)
430
From 0 to 50 units per

Fixed charges
(Rupees /
Month)

Monthly
minimum (in
Rupees)

30

month ( or)
0 to 100 units for two
months
From 51 to 100 units per

530

30

650

30

40

month ( or)
101 to 200 units for two
months
From 101 and above per
month ( or)
201 and above for two
months

(1)

This tariff is applicable to all Commercial establishments and consumers

not categorized under LT IA, IB, IC, IIA, IIB (1), II B (2), IIC, IIIA (I), III A
(2), IIIB, and IV.

(2)

IT Enabled Services / private communication providers will be charged

under this tariff.

(3)

All consumers under this category shall have ISI marked motor and motor
loads of 3 HP and more shall install adequate power factor improvement
capacitors (ISI marked). Noncompliance shall invite compensation
charges as per TNEBs terms and conditions.

The services having a

connected load of 25 HP and above shall be covered under the power

factor penalty system as in (5) below.
(4)

The tariff is also applicable for L.T. supply for construction activities of
residential building/complex till the completion of construction activities.

(5)

All Low Tension Services under this category and with a connected load of
25 HP and above should maintain a power factor of not less than 0.85.

229

Where the average power factor of Low Tension Service connection is

less than the stipulated limit of 0.85 the following compensation charges
will be levied.

Below 0.85 and up to 0.75

Below 0.75

9.11.22

LOW TENSION TARIFF VI:

Tariff

Low
Tension
Tariff VI

(i)

One per cent of the current

consumption
charges
for
every
reduction of 0.01 in power factor from
factor from 0.85.
One and half per cent of the current
consumption
charges
for
every
reduction of 0.01 in power factor from
0.85

Description

Energy
charges in
paise / kWHr
Supply
to
temporary
1050
activities and construction
activities
other
than
Residential
building/Residential
Complexes for combined
lighting and Power load.
Lavish illumination
1050

Minimum (in
Rupees)

50 per kW or
part thereof
per day

The LT tariff VI is applicable for the requirements of a temporary

supply during the construction stage. The temporary supply shall be
converted into the respective regular category after the completion and
compliance to the respective terms and conditions.

(ii)

This Tariff is also applicable for lavish illumination to weddings, garden

parties and other private functions where the illumination is obtained
through bulbs fastened in outer surfaces of walls of buildings on trees
and poles inside the compound and in pandals, etc., outside the main
building. All other cases of illumination, obtained through bulbs

230

intended on outer surface of walls of buildings on trees and poles

inside the compound and in pandals etc., outside the main building
shall be charged as for Temporary Supply.

9.11.23

GENERAL CONDITIONS

(1) The above tariff shall be read with the General Terms and Conditions of
Supply Code and Distribution code specified by the Tamil Nadu Electricity
Regulatory Commission.
(2) The present tariff order does not alter the previous specific orders of the
Commission on categorization of certain consumers.

9.12

Revenue At New Tariff

The Commission has computed the revenue with new tariff rate as below:
Table 182 Revenue at New Tariff
Category

2011-12
consumpti
Net
on
Revenue
(in MU)
(Rs in
Crores)

2012-13
consumptio Net
n
Revenue
(in MU)
(Rs in
Crores)

HIGH TENSION
Industries including
railway traction
Railway Traction

15959

7926.77

17292

8588.87

18739

9307.59

96

46.14

100

48.06

102

49.02

260

120.76

275

127.73

294

136.55

774

410.67

827

438.79

881

467.44

1.32

1.32

1.32

Commercial

1744

1222.32

1901

1332.36

2072

1452.21

Lift Irrigation

0.45

0.45

0.45

18846

9728.43

20408

10538

22101

11414.58

16282.00

3942.50

17065.00

4132.73

17886.00

4333.46

411.00

15.70

428.00

16.41

447.00

17.15

4.00

1.60

5.00

2.50

6.00

3.00

1581.00

541.49

1625.00

556.56

1669.00

571.63

245.00

119.28

231.00

112.64

208.00

101.59

Government and aided

educational institution
Cinema Theatre &
Studios and Private
educational institutions
Places of Pub. Worship

Total HT
II

2010-11
consumptio Net
n
Revenue
(in MU)
(Rs in
Crores)

LOW TENSION
Domestic
Huts
Bulk Supply
Public Lighting
Government and aided
educational institution

231

Cinema Theatre &

Studios and Private
educational institutions
Places of Pub. Worship

141.00

78.42

185.00

102.66

242.00

134.01

98.00

31.02

104.00

32.91

110.00

34.82

Cottage and Tiny

Industries
Power Loom

117.00

31.70

122.00

33.01

128.00

34.50

855.00

174.33

889.00

181.08

924.00

189.19

Industries

4089.00

2012.01

4242.00

2086.82

4401.00

2165.12

Agriculture

11206.00

266.55

11436.00

272.02

11666.00

277.49

Commercial

4555.00

3078.06

4874.00

3291.29

5215.00

3519.11

19.00

19.95

33.00

34.65

56.00

58.80

Temporary Supply

0
Total LT

Total HT and LT

9.13

39603.00

10312.61

41239.00

10855.28

42958.00

11439.87

58449

20041.04

61647

21392.86

65059.00

22854.45

The Additional revenue due to increase in tariff is as below:

Table 183 Additional revenue due to increase in tariff

(Rs in Crores)
TNEB
2010-11

2011-12

TNERC
2012-13

Revenue
with 21259.96 22841.38 24717.36
new tariff
Revenue
with 19331.77 20728.05 22509.52
existing tariff
Increase
in
1928.19
2113.33
2207.84
Revenue

9.14

2010-11

2011-12

2012-13

20041.04

21392.86

22854.45

18390.58

19612.74

20931.43

1650.46

1780.12

1923.02

Revenue Gap with new Tariff

The shortfall in revenue after tariff revision is as below:
Table 184 Revenue gap with new tariff

(Rs in Crores)
TNEB
2010-11

2011-12

TNERC
2012-13

Revenue required 28749.57 29336.61 32127.53

from
sale
of
electricity
Revenue
with 21259.96 22841.38 24717.36
new tariff
Revenue Gap
7489.61
6495.23
7410.17

2010-11

2011-12

2012-13

27946.44

27455.10

26343.63

20041.04

21392.86

22854.45

7905.04

6062.24

3489.18

232

9.15

Treatment of uncovered Gap

9.15.1 THE BOARD

HAS

MARCH 2010

PRAYED THAT THE UNCOVERED REVENUE GAP AS ON

BE TREATED AS

REGULATORY ASSETS

31ST

AND CARRIED OVER TO

BE RECOVERED THROUGH FUTURE TARIFFS.

9.15.2 IN

PARA

BOARD

3.1 (TREATMENT

HAS

OF REVENUE SHORTFALL) OF THE PETITION THE

SUBMITTED THE FOLLOWING WITH REGARD TO TREATMENT OF

CUMULATIVE REGULATORY ASSET OF RS.16774.47 CRORES:

The existing tariff revision procedure does not allow the recovery of
shortfalls either automatically by the Board or through a mid-year tariff
revision by the Commission. Thus the entire revenue loss incurred during the
financial year has to be borne by the Board. Non-recovery of such shortfall
will give rise to stranded cost and the Board will continue to carry it in its
Balance Sheet.
Also since the recovery of the entire shortfall in one financial year (say in
FY2010 -11) would put heavy burden on consumers, the Board does not wish
to burden the consumers with such a huge increase in tariffs, so as to recover
this entire shortfall in one go. The Board's intention is to minimize the rate
shock to consumers and to maintain a smooth tariff trajectory to recover the
costs.
It is thus proposed to treat the above-explained accumulated shortfall as a
special class of assets namely Regulatory Assets for the future years. The
said asset is of the nature of a deferred expenditure and will be charged as
expenditure while formulating the Annual Revenue Requirement in the future
years.
It is proposed to recover these short falls through equal installments in future
years

233

9.15.3 THE BOARD

HAS

CITED THE PRECEDENTS OF SUCH TREATMENT IN

ORISSA

ERC, HARYANA ERC AND ANDHRA PRADESH ERC.

(1)

The case of Orissa relates to treatment the difference in revenue due to

different basis of calculation of T & D losses adopted by the GRIDCO
(41%) and the OERC (35%).

(2)

In the case of Haryana, the difference was due to application of revised

tariff only for three months in an year.

(3)

In Andhra Pradesh, the Commission has accepted the proposal to carry

forward the portion of financial losses which was on account of factors
beyond the control of the licensee.

(4)

The reason for non recovery of accumulated losses in TNEB cannot be

attributed to the factors beyond the reasonable control of the licensee or
any other factors considered by other Commissions.

(5)

Para 8.2.1 (5) of Tariff Policy prescribes the following:

Pass through of past losses or profits should be allowed to the extent caused
by uncontrollable factors. During the transition period controllable factors
should be to the account of utilities and consumers in proportions determined
under the MYT framework

(6)

Para 8.2.2 (a) of Tariff Policy prescribes the following:

The circumstances should be clearly defined through regulations, and should

only include natural causes or force majeure conditions. Under business as
usual conditions, the opening balances of uncovered gap must be covered
through transition financing arrangement or capital restructuring

(7)

Regulation 13 of TNERC Tariff Regulation specifies the following:

a. Wherever the licensee could not fully recover the reasonably incurred
cost at the tariff allowed with his best effort after achieving the benchmark
standards for the reasons beyond his control under natural calamities and
force majeure conditions and consequently there is a revenue shortfall and
if the Commission is satisfied with such conditions, the Commission shall
treat such revenue shortfall as Regulatory Asset/

234

b. The regulatory asset shall first be adjusted against the contingency

reserve. The balance regulatory asset, if any, will be allowed to be
recovered within a period of three years as decided by the Commission.
c. The licensee shall intimate the Commission then and there when such
contingency arises.
d. Any un recovered gap at the beginning must be covered through transition
financing arrangement or capital restructuring.
(8)

The above provisions were already brought to the notice of TNEB in

Commissions letter dated 09-08-2006.

(9)

TNEB has projected revenue gap for the years 2010-11, 2011-12 and
2012-13 in their tariff petition. The Commission has arrived at the gap for
these years as Rs.7905.04 crores, Rs.6062.24 crores and Rs.3489.18
crores respectively and this gap is after allowing a tariff increase of
Rs.1650.46 crores. It is to be noted here that the last tariff hike in Tamil
Nadu was in June 2003 and the TNEB has not preferred any tariff revision
thereafter, eventhough their operating costs have been going up. The
Commission had also advised them to file tariff revision petition but in
vain. There is an accumulated loss of about Rs.16500 crores up to 200809.

The estimated revenue gap for 2009-10 is not available. Had there

been regular tariff adjustments over the last 7 years the revenue shortfall
would not have grown to this extent. There has been no major capacity
addition by TNEB for the last 10 years. The Board has been buying
expensive power from the market which is a major reason for the gap,
besides

increase

in

employee

expenses

consequent

to

the

implementation of the 6th Pay Commission Report for the TNEB

employees. The Commission observes that if the on going projects are
commissioned according to schedule, the revenue gap would start coming
down.

The restructuring of the TNEB is expected to address the

accumulated loss of previous years. Since a huge gap exists even after
the proposed tariff hike, the Commission has no choice but to treat the
remaining portion as regulatory asset.

The regulated asset would further

235

increase in the next two years as the trend of revenue gap continues.
This issue can be addressed only in the long term. To prevent the tariff
shock to the consumers, per force it to resort to creation of regulatory
asset as a last resort.

Sd/-

Sd/-

(K.VENUGOPAL)

(S.KABILAN)

MEMBER

CHAIRMAN

236

Annexure I
MEMBERS OF 19TH STATE ADVISORY COMMITTEE MEETING HELD ON
11-03-2010

1. Thiru. S. Kabilan, Chairman, TNERC.

2. Thiru. R. Rajupandi, Member, TNERC.
3. Thiru. K. Venugopal, Member, TNERC.
4. Thiru. R. Balasubramanian, Secretary, TNERC
5. Thiru. C.P. Singh, Chairman, TNEB
6. Dr. R. Christodas Gandhi, CMD, TEDA
7. Thiru V. Sethuraman, Director, NLC
8. Thiru. I. Srirama, Chief Electrical Engineer, Southern Railway
9. Thiru. S.V. Balasubramaniam, Member SAC
10. Thiru. D. Kumaravelu, Member SAC
11. Dr. M. Abdullah Khan, Member SAC
12. Thiru. DE. Ramakrishnan, Member SAC
13. Thiru S. Rathinasabapathy, Member SAC
14. Thiru K. Kasthurirangaian, Member SAC
15. Thiru. S. Rethinavelu, Member SAC
16. Thiru. G.S. Rajamani, Member SAC
17. Thiru. P, Gajapathi, Member SAC
18. Thiru. Alandur Bharathi, Member SAC
19. Thiru. N.L. Rajah, Member SAC

Special Invitees :
Thiru. P.W.C. Davidar, Secretary to Government, Energy Dept., Government of
Tamil Nadu.
Thiru.

Praveen

Kumar,

Secretary

(Expenditure),

Finance

Department,

Government of Tamil Nadu.

237

Annexure II
LIST OF STAKEHOLDERS WHO HAVE SUBMITTED WRITTEN SUGGESTIONS
AND OBJECTIONS

SL
NO
1

NAME & ADDRESS

The President,
All District Ice Producers Welfare Association, 1/118, Paalathadi-Keechakuppam,
Nagapattinam 609001
Thiru K Alagirinathan
Siru Visaithari Thuni Urpathiyalarcal Pathukappu Sangam, Kamaraja Nagar Colony,
Salem 636014
Thiru K Gopalakrishnan
Hon Gen Secretary,
Tamilnadu Small & Tiny Industries Association, No 10, gist. Road, Guindy,
Chennai 600032
Proprietor, Sree Mookambika Steam Laundry, No 1&2, Keerai Thottam, Street No
7, Kempetty Colony,
Coimbatore 641001
Thiru M Pandeeswari
General Secretary, Madurai District Public Welfare Rights Association & Consumer
Protection Council, No 60, Yanaikkal treat,
Madurai 625001
Thiru V Nadanasabapathy
Chairman, Creed Krishi Vigyan Kendra, Cholamadevi Udayarpalayam Taluk,
Ariyalur district, Tamil Nadu
Thiru K Muthiah
Executive Trustee, Consortium for consumer justice, 46 -A, P.G Mansion,
Maninagaram Main Road,
Madurai 625001

Dr G Rajaram, Chairman & Chief Functionary, Federation of consumer

organizations- Tamilnadu & Pondicherry (FEDCOT).

Thiru N Narayana Reddy, President, District Small Farmers Welfare Association,

Beegisettipalli(Vill), P.C.Puram (P.O), Hosur (Tk),
Krishnagiri (Dt), Tamilnadu
Thiru. U. Subramanian, No.28, North Mada Complex, Vedaranyam,
Nagapattinam District.
Thiru R Ganesan,
Plot No 12, Mohanapuri 1st street, Adambakkam,
Chennai 600088
Thiru T.N.Arulanandhan, General Secretary, The World Community Service Centre
( WCSC) , 26, Second Seaward Street, Valmiki Nagar, Thiruvanmiyur,
Chennai 600041

10
11

12

238

13

14

15

16

17

18

19

20
21

22

23

24

25
26
27

28
29

Thiru M.P. Purushothaman, President , South India Hotels & Restaurants

Association, M 1, Prince Centre, 709-710,
Anna Salai, Chennai 600006
Thiru V Krishnamoorthy ( Retd-Revenue dept), No 9/14, Venus Street, Sastha
Vihar, Iyyappa Nagar,
Trichy 620021
Thiru V Gopalakrishna, Plot No 301, D.No 27, Anna Street, Senthilnagar, S.M.
Nagar Post,
Chennai 600062
Thiru. S. Muthukrishnan,
37/3, Vaithi North Street, Seranmahadevi,
Nellai 627 414.
Thiru. A. A. Normohammad,
7 Jalia Street, Kuthanallur 614 101
Thiruvarur District
Thiru. N. Natesan,
11C, Kamarajar Salai,
Karaikudi
Thiru. S. Durairaj,
Sri Radhakrishnan Ricemill, Athur Main Road, Gangavalli Post & Ward
Salem District 636 105.
Thiru N.S.Venkatesan ( IRSSE- Retd), 76, 5th Cross Street, Mahalakshmi Nagar,
Adambakkam, Chennai 600088
Thiru. P. Johnson Paul Daniel,
1/78, Thenthamaraikulam Post,
Kanyakumari District
Thiru. R. Kaliamoorthy,
Consumers Protection and General Welfare Association, 35/28, Melaveedi,
Thirupanathal - 612 504
Thiru K R B Nair ( Retd Kerala E.B Employee), Pournami, Valvachagestam, P.O
Kattathurai 629158,
Kanyakumari District
Thiru. P. Sivalingam,
394, Shanmugapuram proper Street,
Tuticorin -2.
Thiru D.P. Suresh Kumar, General Secretary, Janata Party, Namakkal district, 82,
Main Road, Namakkal 637001
Thiru Ariua Janakiraman, 4, Nehru Colony, B.A. Road Extension,
Kumbakonam City, 612001, Tamil Nadu
Thiru. L.C. Srinivasan,
No.415, 1st Main Road, TNHB Quarters, Valajapettai ,
Vellore 632 513.
Thiru G Muniasamy, General Secretary, Madurai Consumer Protection Centre,
48/6, West Ponnagaram, 4th Street, Madurai 625016
Karu. Palanivel,
President, Parents Teachers Association, Thittacherry, Harichandrapuram
,Vadamathimangalam Post.

239

30
31

32
33

34

35

36
37

38

39

40

41

42

43

44

Thiru. Moovalur kavi Ravithilagan,

18/15, North Ramalinga Street, Mayiladurai
Thiru. N. Subash Chandrabose,/.President,
All India Building & amaippu sara Thozhilalargal Mathya Sangam, 705, TAJ,
Karaikal Main Road, K. Pudur 612 205 .
Salem Mandala Kumaran Visaithari Pothu Thozhilalrgal Sagam, 1/126,
Thangasalai, Vennandur 637505, Namakkal district
Thiru S Sampath, Secretary, Bhelsia
E mail : bhelsia@yahoo.com
Thiru. V. Kaliappan
S/o Venkatasala Goundar, Ganapathipalayam South,
Karur 639 005.
P. Muthukrishnan,
Secretary,
The Chennai Metropolitan House /Flat Owners Welfare Association No.88-A, MIG
Flat, P.T. Rajan Salai, K.K. Nagar, Chennai 78
The Secretary,
Arimalam Union Consumers Corps, No.4, Pasumadathar Veethi, Arimalam
Thiru. C. Rajendran,
Consumers Rights Protection Council,
No.6, Tamukum shopping Complex, Tallakulam ,Madurai
Thiru. A. Krishnaiah,
S/o A. Venkataramaiah,
3rd ward Member & 25, Veppampattu Panchayat, D.No.539, Sunder Babu Nagar,
89, Veppampattu 602 024. Tiruvallur Dt
T. Gnanasekaran,
19-11, A/5, kaveri nagar,
Mettur Dam 1.
Thiru. S. Sureshkumar,
PRO, Tamil Media & Journalist Welfare Association, No.9, Kakkanji Nagar, ICF,
Chennai 38
The Secretary,
Tirunelveli District Chamber of Commerce & Industry, No.17, Arunagiri Complex,
25-B/1, S.N. High Road,
Tirunelveli -1.
Thiru. Prof. S. Sethuraman,
Sastra University ,
Thanjavur 613 402. Tamil Nadu .
Thiru. K. Balasubramanian,
Puliangudi Regional Small powerlooms owners association,
Senkunthar Valibar Sanga Building, Sundara Vinayagar Koil Street, T.N.
Pudukkudi,
Puliangudi 627 855.
Thiru. S.V. Swaminathan,
152, Akkasari Vinayakar Koil Street,
Tirunelveli Town 627 0076

240

45

46

47

48

49
50

51

52

53
54

55

Thiru. Venugopal,
President,
Makavi Bharathi Nagar Development House Owners Welfare Association, 12th
Centre Cross Street,
Makkavi Bharathi nagar,
Chennai 39
Thiru. Mylsami,
President,
Erode District Small Industries Association, No.5/1, SIDCO Industries Estate,
Chennamalai Rd,
Erode 638 001.
Thiru. K. Muthusami,
S/o P. Kailasam (Late),
23 V.P. Koil Street, Pitchanoor, Gudiyatham,
Vellore Dist.
Thiru. V.K. Subramania Raja,
Managing Director,
Geetha Krishna Spinning Mills Pvt. Ltd.,
PB No.76, Madurai Rd,
Rajapalayam 626 117.
Thiru. K. Manokaran,
4/1, Ashtapuzam Road, Choolai, Chennai 112.
Thiru. S. Deivanayagam,
Nehru Nagar Kudisai Abhiviruthi Sangam,
No.12, Nedunchezhiyan Street, Nehru Nagar, Chennai 32.
M/s
Sri Karunambika Powerlooms Owners Association,
No.7/29K,
Madathukupalayam Road, Avinasi 641 654.
Coimbatore District
Thiru K. Manivasagan, S/o Kandasamy, 3rd Ward Street Lane, Ongini Post,
Senthurai Division,
Ariyaloor Dist.
Sri Vinayaka Coolies weaving Owners Association, Pudupalayam 641 654.
The Weaver Owners Associaton, Tehkkalur,
Avanasi Division,
Coimbatore Dist.
Thiru. V. Soundararajan, Thirunagesgaram.

56

Sri Karunambigai Weavers Owners Association, 7/29K, Madathupalayam Road,

Avinasi 641 654,
Coimbatore Dist.

57

Thiru Sanjay Sharma, SE, Dir ( Ser), Chief Engineer Chennai Zone, Military
Engineer Services, Island Grounds,
Chennai 600009
Thiru. A. Srinivasamoorthy, 1/66, Kamaraj Nagar Road, Thalavaipuram 626 188,
Virudu Nagar Dist.

58

241

59

Madurai Betel Nut Beedi Cigarette Merchants Association, 58-59, Manjanakkara

Muthiah Pillai Street,
Madurai 625001

60

The President, Coimbatore District Coolies Weaving owners Association Power

House Road,
Somanur 641 668,
Coimbatore Dist

61

Thiru.
S.
Boominathan,
S/o
Swamynathan,
1/69,
Keela
Chidambaranapuram, Thathuvacherry Post, Thiruvadaimaruthur Division.

62

Thiru. A. Gopalan, No.23, Valluvar Street, Uraiyur, Tiruchirapalli 620 003.

63

Thiru R Panneerselvam, General Secretary, Tamil Nadu Film Exhibitors

Association, D.R.Maligai, No 2, Old No 16, Poes Road, III Street, Teynampet,
Chennai 600018

64

Thiru K Venkatachalam, Chief Advisor, Tamilnadu Spinning Mills Association, D.No

24, 11TH Cross Street, Thiruvalluvar Nagar, Spencer Compound,
Dindigul 624003

65

LEAD CLUB, Plot No M.I.G 1328, 2nd Main Road, TNHB, Velachery,
Chennai 600042

66

Thiru. S. Chandran, 47/106, 7th Block, Kannadasan Nagar, Chennai 118.

67

Thiru. S. Bhaskaran, No.45/33, Old Munship Court Street, Saidapet,

Chennai 632 012.

68

Mallasamudram Small Powerloom Jawli Urpathiyalargal Samgam, Mallasamudram

637503, Tiruchengode Tk,
Namakkal District

69

Thiru. T. Senkottuvel, NO.32, State Bank Road,

Erode 638 001.

70

Thiru. V.L. Jayaprakash, S/o V. Loganathan, No.25, Valaiyalkara Street, Saidapet,

Vellore 632 012.

71

Thiru. P. Anandhan, 12B, Bharathiyar Street, Ulaganathapuram,

Thiruchirapalli 20.

72

Thiru. S. Pancharatnam, SAC Member, No.3/326(1), Ranganathan Street, Bank

Colony, Pudunatham Road, Madurai 625 014.
Thiru. C.K. Subramanyam, 1/122, Eswaran Koil Street, Kathivadi Village, Mel
Vidaram Post,
Vellore District 632 509.

73

242

Street,

74

Thiru. A.K. Ayyangar, Founder, Villupuram District Farmers Federation, Baadur

,Ulundurpettai Tk,
Villupuram Dist

75

Thiru N.J. Nareis, 14, Rajiv Gandhi Street, Lakshmipuram, Chrompet, Chennai
600044

76

Thiru C.S.Krishnan, No 6, 4th Street ( E), Periyar Nagar, Vadavalli, Coimbatore

641041

77

Thiru S Mahalingam, 39/75 (55) West Street, Vishnupuram 609506, Thiruvarur

District

78

Thiru. K.R. Shajahan, No.24, Pensioners Colony, Kesava Nagar,

Post,
Thiruchirapalli 620 023.

79

Thiru. K.G. Ganesan, District Secretary, 3/7=672, Gandhi Road, Ammaiyarkuppam

631` 301, Pallipattu Division, Tiruvallur District.

80

Federation of consumer & service organizations, No 5, 4th Street, Lakshmipuram,

Tiruchirappalli 620010

Khaja Nagar

E Mail : fedservorg@yahoo.com
81

Raghul Spinning Mills, 3/191-A, Melapattam Karisalkulam 626110,

Rajapalayam

82

Thiru A Gopalasamy, Member, State General Council, T.N.C.C., 9/8, Railway

Station Road, Vaiyampatti O.O,
Trichy District, Tamilnadu 621315

83

Thiru Dr V Balasubramanian, 79, II St. Thirumalai Colony, Madurai 625016

84

Thiru V Ramalingam, General Secretary, State Consumer Rights Protection of

Federation, Muthuramalinga Thevar Street, Gandhi Nagar, Vathalagundu 624202,
Dindigul District,
Tamilnadu.

85

Thiru. K. Rangaraju, No.12, Bharathiyar Street, Ulaganathapuram,

Trichirapalli - 20

86

Thiru N Narayana Reddy, President, District Small Farmners Welfare Association,

Beefisettipalli ( Vill), P.C.Puram (P.O) Hosur ( Tk),
Krishnagiri ( Dt), Tamilnadu

87

Thiru S.K.Ananthan, Vice President Operations, Patspin India Ltd, 2/85-B,

243

Udumalai Tirupur Road, Ponneri, Kottamangalam P.O,

Udumalpet 642201
88

Dr. Thiru. A. Krishnamoorthy, (Retired Sr. Civil Surgeon), District Co-ordinator,

Federation of Anti Corruption Teams India , (FACT INDIA), Old No.16, New
No.45, Mettu Street, Chinna puliampatti, Aruppukottai, 626 101.
Virudhunagar Dist.

89

Thiru. M.R. Mothilal, Braided Cord Manufacturers & Merchants Association,

No.2/3A, A.A. Road, Chairman Muthuramaiyar Road, Madurai 625 009.

90

The Director, K.P.R Mill Ltd, No 9, Gokul Buildings, 1st Floor, A.K.S Nagar,
Thadagam Road,
Coimbatore 641001

91

VXL Ferros, P.B No 4412, S.F No 651/4, Pollachi Road, Coimbatore 641021

92
93

Thiru. N. Jeyabalan, -2/311-9, Sona Nagar, New Fairlanders, Salem 636 016.
Thiru. P. Appandairajan, Postal Pensioner, 22, Chinna Jain street,
Goripalayam, Arani .

94

Thiru. A. Abdul Jabbar, (Retired Sub-registrar co-operative societies ), No.5,

Karthik Nagar, Pillaiyarpatti,
Vallam 613 403.

95

Thiru. Machine N. Kumar, No.7, Hospital Road, opp. To Government Primary

Health Centre, Mallasamuthiram Post 637 503, Thiruchengode Tk,
Namakkal Dist.
Tmt R Gomarthy Nayagam & Tmty G Kanagasundari, 89/5, Boopala rayarpuram,
Thoothukudi 1

96

97

Thiru. T. Moorthy, 69, School street, Velayudapuram, Aruppukottai 626 101,

Virudhunagar.

98

Thiru Dr N V Girishkumar
Indian Medical Association, Coimbatore Branch, 92, Syrian Church Road,
Coimbatore 641001
Thiru Dr T.V.Kumar
Indian Medical Association, Chennai, Poonamallee branch, 255, Trunk Road,
Poonamallee, Chennai 600056
& 3364 representations

99

100

Thiru T Loganathan, Ex Member Fishing Harbour, 17/A, 18 A, Jeevarathinam

Nagar, Adayar,
Chennai 600020
Thiru Sanjay Sharma, SE, Dir ( Ser), Headquarters, Chief Engineer Chennai Zone,

244

Military Engineer Services, Island Grounds,

Chennai 600009
101

Thiru Dr K Thangamuthu, M.S,

Legal Chairman, PPLSSS, IMA, Tamilnadu, I.K.G.M Hospital, Coimabore Road,
Pollachi

102

Thiru P.S.Nagarajan,
G-1, J.V. Royale
5/7, Arangan Street, Vijayalakshmipuram,
Ambattur, Chennai 600053

103

Thiru A.V.Ramaswamy, Chairman , Vanaprastha

Trust & Dhyanaprastha
Foundation , Kasturinaicken Palayam, Vadavalli, Coimbatore
E Mail :krishangan@gmail.com

104

Thiru V Shunmugavelu, No 3, St No 8, Subbaraj Nagar, Bodinayakanur, 625513,

Theni district
E Mail : vshunmugavel@hotmail.com

105

Thiru P R Raajakoomaran, Plot No 931, LIG II, CMDA, Mathur, Chennai 600068

106

Thiru. V. Azhagarsamy, Door No.274, South Tank Road, Allinagaram, Theni Dist
.

107

Human Rights Protection Council, No 5/23, Anna Sami Pillai Colony, Near A.S.T.C.
Dubbo, Hosur, 635109, Sundarampally Post, Tirupattur Tk,
Vellore Dt 635654
Thiru. Radhakrishnan, 1/1, Kadai Street, Vaimedu, Thasangu Post, Vedaranyam
Division,
Nagapattinam Dist.

108

109

Thiru. Sureshkumar,
News correspondence, Tamil Nadu Federation of Merchants Association, Kumar
illam, 27, Paramathi Road,
Namakkal 637 002.

110

Thiru Dr N Mahendran, M.D,

Secretary, Nursing Home Board Indian Medical Association, 92, Syrian Church
Road,
Coimbatore 641001

111

The Tamilnadu Foodgrains Merchants Association Ltd, 342, East Masi Street,
Madurai 625001

112

Thiru. S. Sekar,
Vadapalani, Chennai 26.

245

113

Thiru C Venkatesan, Secretary, Mahkavi Bharathi Nagar Development House

Owners Welfare Association, A.P. No 927, 12th Central Cross Road,
M.K.B Nagar, Chennai- 39

114

Thiru J Jebachandran, Secretary, Emerald Estates Owners Welfare Association,

Plot No 24, Emerald Estates, Jothi Nagar, 4th Street,
Chrompet, Chennai 600044

115

A to Z Helping Service Trust, No 83, White Bettal Street, Fort Post Office, Trichy
620008

116

Aghin Chemicals, 2/32, Singikulam, Nanguneri Taluk, Tirunelveli 627152

117

Thiru Anantharam,
E Mail : ananthap.ram@gmail.com

118

The Secretary,
St. Valanar Trust, St. Valan Kalamandram, Saral & Post, 629 203, Kanyakumari
Dist.

119

Indian Medical Centre, 283,

T.T.K Road, Chennai 18

120

The President, All District Ice Producers Welfare Association, 1/118, PaalathadiKeechankuppam,
Nagapattinam 609001

121

Thiru K Rajagopalan & Thiru A K Muthuraman,

170, A Block, Dev Apartments, 6th Cross Street, AGS Colony, Velachery, Chennai
42

122

Thiru J Sridhar,
Plot No 25, Door No 6, Vth Main Road, Vijaya Nagar, Velacheri, Chennai 600042

123

S. Pathima Rajarathinam, Tamil Nadu Farmers Sangam, 5/166, St. Soosaiyar

Street, Panchampatti,
Dindigul Dist. TN 624 303.

124

Thiru. A. Narayanasamy, President, Consumer Protection Committee, No.87,G.S.T,

Road,
Karunguzhi.

125

Thiru. E. Naiyinar,
District Secretary,
Tamil Nadu Senior Citizens
and Pensioners Welfare
Association, No.41, V.C. Ramasamy Complex, Natarajapuram, Vadiveeswaram,
Nagercoil 2,
Kanyakumari

246

126

Thiru T Babu,
Founder Managing Trustee, Nugarvour Ulagam Trust, No 15/448, Keezhpaathi
Street, Ikkadu Village & Post, Thiruvallur Taluk & District 602021

127

Thiru. N. Dharmaraj, TNEB Complex,

Thillai nagar.

128

Thiru. N. Soundappan,
& 30 others, Thathagampatti gate, Weavers colony Road, Salem 6.

129

Thiru. H. Khaja
Bandhe Navas, 160A, Ashad Road, Melapalayam, Thirunelveli 627 005.

130

Thiru. Agri. M. Balaiyan, State President, Tamil Nadu Fish grow Farmers Welfare
Association, Annavasal, Eda.Keezhaiyur Post, Mannarkudi Taluk,
Thiruvarur Dist.

131

Thiru. S.K. Arunachalam, Secretary, Sooriyampalayam small powerloom Owners

Association, Sooriyampalayam 637 209, Thiruchengode Division,
Namakkal Dist.

132

Thiru. N. Natesan, Secretary, Sooriyampalam Cooli sticking small powerloom

waivers Association, Sooriyampalayam 637 209, Thiruchengode Division,
Namakkal Dist.

133

Thiru. S.K. Irulappan, Small powerloom Cotton manufacturers

Sattaiyampudur, Thiruchengode, 637 211, Namakkal Dist.

134

Thiru. S.K. Arunachalam, Secretary, Sooriyampalayam small powerloom Owners

Association, Sooriyampalayam 637 209, Thiruchengode Division, Namakkal Dist.

135

Thiru. S.K. Arunachalam, Secretary, Sooriyampalayam small powerloom Owners

Association, Sooriyampalayam 637 209, Thiruchengode Division,
Namakkal Dist.

136

Thiru M G Devasahayam, Managing Trustee, Citizens Alliance for sustainable

living, C/so UN-Habitat Office, 5th Floor, CMDA Building ( Tower I ),
Egmore, Chennai 8

137

Thiru. A. Kattabomman, Aavikkottai, Keelakurichi Post, Pattukottai Taluk, Thanjavur

dist.

138

Thiru. S. Balasubramanian, No.15/108, Dindigul Road, backside to Divya Marriage

Centre , Velliyanai 639 118.
Karur Dist.

139

Thiru G Soundararajan, President, The South India Spinners Association, Flat No

103, A Block, Raheja Centre, 1073 & 1074, Avinashi Road, Coimbatore 641018

Association,

247

140

Namakkal District Powerloom Weaving Association for Wages, 315/1, Salem Main
Road,
Komarapalayam 638183

141

Tiru V Sekar,
President, Komarapalayam Kongu Powerlooms Urimaiyalargal Sanam, 2/227-02,
Near Power House, Salem Main Road, Komarapalayam 638183,
Namakkal district

142

Thiru Dr K Selvaraju,
The Southern India Mills Association, Post Box No 3783, 41 Race Course,
Coimbatore 641018

143

Thiru R Santha Moorthy, Secretary, Mettupalayam Consumer Protection

Organisation, 216-B, Main Road,
Meetupalayam 641301
Thiru. T. Moorthy,
No.69, School Street, Velayaudapuram, Aruppukottai 626 101, Virudhunagar Dist.

144

145
146

Thiru Dr N I Rameshwar, Secretary, Neelagiri Mushroom Growers Association,

Ooty 643006
Thiru Louis Duraiswamy
No 14/1, Ramanujam Street ( Ground Floor ), Choolaimedu, Chennai 600094

147

Thiru K Gopalakrishnan, Hon General Secretary, Tamilnadu Small & Tiny Industries
Association, No 10, GST Road, Guindy,
Chennai 600032

148

Thiru. K. Balasubramanian, Manager, Animal Husbandry Department, (Retd), 7D,

1St Floor, Lakhshmi Avenue 4th Cross Street, Amman Sethi,
Urapakkam Post, 603 210.

149

Thiru. Ramesh Belli,

Joint Secretary, Nilgiris Pototas and Vegitable Manufacturers Association,
Agraharam, Geetha Lodge Building, Udhagamandalam.

Old

150

Chief Electrical Engineer, Southern Railway,

Chennai 600003

151

Gudiyattam Taluk All Powerloom Entreprenours Association,

Vedantha Padasalai, 29, Appu Subbaiar Street, Pichanoor,
Gudiyattam 632601

152

Thiru Thiru. N. Venkatraman,

Secretary, Mettupalayam Consumer Protection Organisation, 216-B, Main Road,
Meetupalayam 641301

248

153

Thiru T Sekkilar, Circle Head

Tamilnadu Circle
Wireless TT Info Services Ltd, Celestial Point, # 45, Dhamodaran Street,
T Nagar, Chennai 600017

154

Thiru A.P.Ramamoorthy
51, Vanaprastha, Vadavalli, Coimbatore 641041
E Mail : apr1818@hotmail.com

155

Thiru S Gandhi, President, Power Engineers Society of India, No 45/28, Balaguru

Garden Extn,l Peeamadu,
Coimbatore 641004

156

Thiru G Subramanian
Secretary, Protection of Human Rights Centre,
Headquarters : 24, Chinnaveeraraghavan Street, Kaveripakkam, Dindivanam.

157

Thiru. P. Periasamy,
S/o Palaniappan, Velliyanai village, Karur Dist.

158

Thiru. K.G. Panneerselvam, Ex President of Trichy Reporters Association, No.1,

5th Cross, N.M.K. Colony, TVS Toll Gate,
Trichy - 620 020.
Tmt R Gomathy Nayagam & Tmty G Kanaga sundari, 89/5, Boopalarayarpuram,
Thoothukudi 1

159

160

Thiru. Viswanathan , Ammapettai,

Salem 636 003.

161

Sr Leo Thomas,
St Josephs Home for the Aged and Destitute, Podanur PO., Coimbatore 23
E Mail : sjhomecss@yahoo.com

162

Thiru Prof D S Hanumantha Rao, Former Member, TNERC, 4, Thiruchendur Flats,

New 7, Babu Rajendra Prasad First Street, West Mambalam,
Chennai 33

163

Thiru Dr N S Marimuthu, Principal, National Engineering College, K.R.Nagar,

Kovilpatti 628503,
Thoothukudi District
Thiru S Srinivasan, Dy Manager ( Legal ), Brakes India Ltd, Padi, Chennai 50
Thiru. L.K. Mathiniraiselvan,
Kumara Old No.17, 1st Floor, Thomas Nagar,
Chinnamalai, Saidapet,
Chennai 15. (SC No.262-013-182).
Thiru. A.S. Ramamoorthy, Deputy Superintending Engineer(Retd), Public Works
Department, No.6, 6th Street, Society Colony,
Thanjavore 613 007.

164
165

166

249

167

Avram Ami Trust,

No.9, Chairman Thulasiram 1st Lane, Keelavelli Veedi,
Madurai 1.

168

Thiru R Duraisamy
All India Induction Furnaces Association, 209, M.G. House, Community Centre,
Wazirpur Industrial Area,
Delhi 52
General Manager ( Finance & Accounts )
Sri Kannapiran Mills Ltd,
Post Bag No 1, Sowripalayam Post,
Coimbatore 641028

169

170

Thiru Venkatesh, Commercial Head TN Circle, Reliance Communications,

Reliance House, No 6, Haddows Road, Nungambakkam, Chennai 600006

250

Annexure III

ANNEXURE - III - Details of Persons who deposed before the Commission

Public Hearing at : Chennai,

Date : 30-3-2010

Venue : Rani Seethai Hall

Sl
No.
1
2
3

Name and Address of the Participants

Dr. K. Thankamuthu, Legal Chairman, 1, KGM Hospital, Coimbatore Road, Polachi - 2.
Dr. T.N. Ravi Shankar, Secretary, Indian Medical Association., Deepam Hospital, Tambaram
Cell .9444047724.
Dr. Regavelu,Indian Medical Association, Tamil Nadu
Mrs. Canir Franklin, Treasurer, Association for Non-Traditional Employement for Women,
AH, 16/107, 4th Street, Shantrhi Colony, Anna Nagar, Chennai 40. Phone : 26200697.

Thiru. G. Gopalakrishnan, Hon. General Secretary,Tamil Nadu Small and Tiny Industries
Association, No.10, GST Road, Guindy,Chennai 32. Phone : 044-65610137.

Thiru. C.K. Mohan, Vice President, Tamil Nadu Small and Tiny Industries Association, No.10,
GST Road, Guindy, Chennai 32. Phone 22250784l.

Dr. S. Periyandi, All District Ice Producers Welfare Association, (Sea Food Process ), 1/118,
Keechankuppam, Nagapattinam 609 011. Ph : 9443370094

Thiru . S.S. Subramanian, General Secretary of COTEE(CITU), No.27, Masque Street,

Chepuak, Chennai 5.

Thiru. V.S. Thiagarajan, ACMEC, Trust, Melmaruvathur Temple.

10

Thiru.
Chief
Southern Railway.

11

B.V.
Electrical

Distribution

Chandrashekar,
Engineer,

Thiru. G. Vedagiri, Secretary, North Chennai House Owners Association, No.47/20,

Narayanappan Naicken Thottam, 7th Street, Old Washermenpet,Chennai -21.

251

12

Thiru. G. Subramainian, Senior Manager - Electrical,Jumbo Bag Ltd., NO.75, Thatchur Kottu
Ponneri
Taluk,
Tiruvellore
Dist.
Road,
Panjetty
Village,
601 204.

13

Thiru. G. Sriram, Se. Engineer, Rane Engine Valve Ltd., No. 4, Redhills Road,
Madhavaram , Ponneri 601 204. Ph : 27974154.

14

Dr. A.K. Krishnasamy, 56, Kosa Anamalai Street, Gudiyatham 632 602,Vellore Dist. Cell :
9443340179.

15

Thiru. Raghunath, Administrative Officer, Sri Ayyappa Charitable Trust, 18, Sir Madhavan
Road, Mahalingapuram Chennai 34.

16

Thiru. K. Mohan, General Secretary, Tamil Nadu Vanigar Sankangalin Peravai,No.2, Shop
Street, Ambattur, Chennai 53. Ph : 96001 71669.

17

Thiru. S. Gandhi, Power Engineers Society of Tamil Nadu,Trichy 620 102 Mobile :
944300311.

18

Thiru. M. Narayanan, State Vice President,Tamil Nadu Farmers Association,46, A . VOC

Street,Kasthuri Bai Nagar, Chennai 45.

19

Thiru. S. Kumaran, Associate Professor,Tamil Nadu Veterinary Animal Sciences University,

MMC, Chennai 51 Mobile : 9444479988.

20

Thiru. A.P. Srinivasan, Consumer Protection Forum, Chennai 4.

Thiru. TRC Palaniraj, World Community Service Centre,Chennai 41 Mobile : 9445382348.

21

22

23

Thiru. Kamalakannan,Vice President,Mahkavi Bharathi Nagar Development House Welfare

Association, AP 1092, 18th Central Cross Street, Mahakavi Bharathi Nagar, Chennai 39.
Thiru. Venugopal,President,Mahkavi Bharathi Nagar Development House Welfare
Association, AP 1092, 18th Central Cross Street, Mahakavi Bharathi Nagar,Chennai

24

Mrs. A. Girija, Co-opted Member,Animal Welfare Officer, Animal Welfare Board of India,
Thiruvanmiyur, Chennai 41.

25

Thiru.
Deepamuthaiah,DEAN
Kilpauk, Chennai 10.

26

Thiru. G. Venkatraman, Secretary General,South India Hotels

Association,No.M1, Prince Centre, 709-710, Anna Salai, Chennai 6.

27

Thiru.P.Thandurairajan,Tamil Nadu Progressing Counselling Centre, 604, C.T.H. Road,

Pattabiram, Chennai - 600 072.

Foundation,No.73,

New

No.59,

2nd
&

252

Street,

Restaurants

28

Thiru. R. Rangachari,Advisor,M1, Prince Centre, South India Hotels & Restaurants

Association,No.M1, Prince Centre, 709-710, Anna Salai, Chennai 6.

29

Thiru. Seshadri, Chief Financial Officer, NO.6, Haddaws Road, Opp. Sastri Bhavan,
Nungampakka, Chennai 6.

30

Thiru. Vijayaraghavan, NO.6, Haddaws Road, Opp. Sastri Bhavan, Numgampakkam,Chennai

36.

31

Thiru. Srinivasan, Sr. Manager Project - Vodopone,MRC nagar, Chennai 28.

Thiru. P.R. Sudhakar,General Mnager, Indirect Tax,Brakes India Ltd.,Padi, Chennai 50.

32

33

34

Thiru. Manoharan,Proprietor,The Pleasant Stay Hotels of Chennai,Old No.34A, New No.81A,

Chandra Manor,Perumal Koil Street, Saidapet, Chennai 15.

Thiru. Saravanan,TN Congress Human Rights Dept. No162, 8th Street, NSK Nagar ,
Arumpakkam, Chennai 106.
Thiru. A.M. Selvam,117, 2nd Street,Tamil Nadu Housing Board Nagar,Velacheri, Chennai 42.

35

36

Thiru. S. Chandrasekaran,Secretary,Tamil Nadu Food Grains Merchants Association,No.8,

Anderson Street, 1st Floor, Chennai 1.

37

Mrs. Parvathy,Working Women's Forum,No.55, Bhimasena Garden Road, Mylapore, Chenai

4.

38

Thiru. Rajagopal,170, AGS Colony,DEV Apartment,Velachery , Chennai 42.

39

Thiru. V. Ravichandran,Founder Chairman, Citizens Guardians, New No.1 Old No.2, Bank of
India Colony, Chennai 83.

40

Thiru. A. Narayanasamy,S/o Arumugapillai, Malaipalayam 9th Ward Karunkuzhi 603 303.

41

Thiru. Sonaware UD,Joint Director /Services, HQ's Chief Engineer, Chennai Zone (MES),
Chennai 9.

42

Thiru. Appasamy, President,TNEB's Engineer's Assocation, Chennai.

43

Thiru. T. Bhaskar,S/o. M. Thambiah Naidu,Ernavoor, Chennai 57.

44

Thiru. S. Periasamy,95/2, Poonamalli Road, Chennai 84.

Thiru P. K. Gunasekar,No.4, PKG 1st Lane,Sowcarpet, Chennai 79.
Thiru. V.G. Purusothaman,Tamizhaga Vivasayigal Sangam,Cheyyar,
Dist.,Mobile : 9025804422.

45

Tiruvannamalai

46

253

Public Hearing at : Madurai,

Date : 08-04-2010

Venue : Tamil Nadu Chamber of Commerce, Platinum Jubilee Hatsun Auditorium,

Kamarajar Salai, MADURAI - 625 006.

Sl
No.
1
2

Name and Address of the Participants

P.SUBASHCHANDRABOSE, Honorary
SECRETARY,The Tamil Nadu Foodgrains
Merchants Association Ltd, 348, East Masi Street, Madurai
K.VELUSAMY, CONSUMERS ASSOCIATION, MELAKKOTTAI, THIRUMANGALAM TALUK
Thiru. S. Selvaraj, Joint Secretary ,Tamil Nadu Consumer Protection Council, Madurai

3
4
5
6
7

Dr.
A.
Krishnamoorthy,
MBBS.,16/45,
Mettu
Street,
Chinnapuliyampatti,
Aruppukottai
Thiru. Arumai Rajagopal, President,All District Ice Manufacturers Welfare Association,1,
Thirumullai vasal Road, Sirkazhi, Ph : 9443370094
Thiru. M. Pandian, President,Madurai District Farmers Sangam,86/1, South Street, Thenkarai,
Periyakulam, 625 601.
Thiru. K. Muthaiah,SC No.SWC 191, Melamadai section and Pentioner,No.4/1055, Annai
Abhirami Street, Anbu Nagar, Madurai 20.

13

Tmt. B. Lalitha,Secretary,Consumer Rights Protection Council,Paramakudi.

Tmt. M. Pandeeswari,General Secretary,Madurai District Public Welfare Association and
Consumer Protection Committee,No.60, Yanaikkal Street, Madurai.
Thiru. Bramhachari Partha,Bharat Sevashram Sangha,Kattupillayar Koil Street, Rameswaram
623 526.
Thiru. N. Somasundaram,President,Madurai District Tiny & Small Scale Industries
Association,1A-4A, Dr. Ambedkar Road, Madurai 625 020.
Dr. K.S. Mayilvaganan, M.S., President,Indian Medical Association,No.1, Panagal Road,
Madurai - 625 020.
Dr. S. Babu, M.S.,Honorary Secretary,Indian Medical Association,No.1,Panagal Road,
Madurai - 625 020.

14

Dr. P. Vijayarathinam,Vice President,Indian Medical Association,No.1, Panagal Road,

Madurai - 625 020.

15

Dr. R. Ravindran,Joint Secretary,Indian Medical Association,No.1, Panagal Road, Madurai 625 020

16

Dr. R.R. Vijayakumar, MBBS., DLD.,Indian Medical Association,No.1, Panagal Road,

Madurai - 625 020.

8
9
10
11
12

17

Dr. V. Ravindranath, M.S., M.CH,Indian Medical Association,No.1, Panagal Road, Madurai 625 020.

254

18
19
20
21
22
23
24
25
26
27
28
29
30
31

32

33
34
35
36

37

38

Dr.
A.S.A.
Jeganaathan,
District
No.1, Panagal Road, Madurai - 625 020.
Thiru. A.R. Siva,Hanuman Weaving
Madurai.

Co-ordinator,Indian
Mills,Kappalur

Medical

SIDCO

Association,

Industries

Estate,

Thiru. V. Balakrishnan, President,Amutha Surabi Kalai Mandram,Madurai.

Thiru.
P.
Chinnasamy,Secretary,Power
Engineer's
Society
of
TamilNadu,
Madurai.
Thiru.
T.
Ramasubramanian,Legal
Head,Reliance
Communication
Ltd.,
No.6, Haddows Road, Nungambakkam, Chennai
Thiru. Ghandiya M. Navabjan,Tamilaga Arasin Kottaiamir,445/378, Thirupathi Nagar, 2nd
Cross Street,Solai Alagupuram 1st Street, Madurai 11.
Thiru. K. Devarajan,Avran Ami Trust,
No.9, Chairman Tulasiram 1st Street,
East Veli Street, Madurai 1 Ph : 9443832105.
Thiru. Ravichandran,Rajapalayam
Thiru. M.K.R. Ramkumar,Braided Cord Manufacturers & MerchantsAssociation, No.2/3A, A.A.
Road,Chairman Muthuramaiar Road, Madurai 625 009.
Thiru. K.M. Ravindran,Darshini Associates,33/28, Sambanthamoorthy Street, Madurai. 1
Thiru.
M.
Kandaiya,Indian
Express,Arivagam,
108/208,
HMS
Colony,
Madurai 6.
Thiru. T. Kannan,No.45, 3rd Chekkady Street,Kovilpatti - 628 501.
Thiru. N. Jegadeesan,President,Tamil Nadu Chamber of Commerce,Kamarajar Salai,
Madurai.
Thiru.
K.
Venkatachalam,Chief
Adivisor,Tamil
Nadu
Spinning
Mills
Association,Dindigul.
Dr. S. Gnanasoundari, MBBS., DGO.,Indian Medical Centre,Perumalpuram, Kottaram,
Kanyakumari 629 708.
Dr. M. Chandramohan, M.D.,Retd., Professor of Medicine,Madurai Medical College,26/83,
East 6th Street, K.K.Nagar, Madurai 20.
Thiru. V.S. Boss,124, Karpaga Nagar 6th Street,K.Pudur, Madurai.
Thiru. S. Krishnasamy, Managing Partner,Backiya Industries,75/2Bs, NH 7, Nagari, Madurai
625 221.
Thiru.
S.Srinivasan,Graham
Travels
Building,No.50,
Police
Station
Road,
Sivakasi 626 123.
Thiru. V. Jeyapaul,Dan Public Relations,1/473, Thamirabharani 1st Street, Sri Nagar,Iyyar
Banglow, Madurai 14.
Thiru.
M.
Dharmaraj,
Amaravathi
Sri
Venkatesa
Palani Road, Swaminathapuram, Madathukulam 642 113.

Paper

255

Mills

Ltd,

39
40
41
42
43
44
45

Thiru. O. Paramasivam, Joint

Tallakulam, Tamukkam, Madurai.

Secretary,Consumer

Rights

Protection

Council,

Thiru. Ravindran, Vice President,Consumer Council Right Protection Committee,Tallakulam,

Madurai. 2.
Thiru.
N.S.
Premkumar,Sri
Pandian
Textile
Mills,
(SC
No.
109),
T. Pudupati, Thirumangalam, Madurai.
Thiru. G. Rajagopal,Madurai Coffee and Tee Varthaga Sangam,124, North Masi Street, 1st
Floor, Madurai.
Thiru.
C.
Thenuraj,
General
Manager,Veppoladai
Salt
Corporation,
13A/1, Pillaiyar Koil Street, Meenakshipuram West, Tuticorin 628 002.
Thiru. T.N. Gokulnath, President,Elders Forum for Social Awareness and Action,348-F, Muta
Garden, Pasumalai , Madurai. 4.
Thiru. G. Irulandi,Madurai District Eliyoor Nala Sangam,Keelachandai Pettai, Madurai 9.

47

Thiru.
K.K.
N.
Rajan,General
Secretary,Joint
Action
Council
for
Citizens
Improvement,Madurai.
Thiru. M.R. Krishnakumar,Secretary,Betal nut & Beedi Cigrette Merchants Association,58-59,
Manchanakkara Muthaiah Pillaiya Street,Madurai 625 001.

48

B. Seenivasagam, Electrical
Nagar,Rajapalayam-626117.

46

49
50
51
52
53
54
55
56

Engineer,SriJayajothi

&

Company

Ltd,

Thiru. M. Subramanian,Branch Secretary,(TNEB Engineer's Sangam)Madurai.

Thiru. P. Rajendiran,Vice President,Madura Coats Pvt Ltd.,Madurai.
Dr. P. Alagarsamy,IMA Secretary,Mullaiperiyar,Cumbam, IMA.
Thiru. S. Devarajan,80/49, Athimoola Agraharam,Simakkal, Madurai.
Thiru. B. Kumaresan,30, Government Colony,Byekara, Madurai 5.
Thiru. Vijayaragavan,Secretary,Plastic Association Madurai.

Date : 13-04-2010

Venue : Nani Kalaiarangam, Mani Higher Secondry School, Pappanaikan Palayam,

Coimbatore.

1
2

Alagai

Er. B. Velvendan, B.E.,Deputy General Manager (Elect), Rajapalyam Mills Ltd, PAC
Ramasamy Rajasalai, Rajapalayam-626117
Thiru. Arima N.P. K. Malaichamy,District Advisor, Human Rights Protection
Council,H.O.155/1,North Veli Street, Madurai-1.

Public Hearing at : Coimbatore,

Sl
No.

70,

Name and Address of the Participants

Thiru. K. Thangamuthu,Secretary,Tax payers Association,Pollachi
Thiru. H. Mani,Nilgiri Potato and Vegetable Grower's Association,Ooty, Nilgiris.

256

3
4
5
6
7
8
9
10

Dr.N.I. Rameshwar,Nilgiri Mushroom Growers Association, Coimbatore 18.

Thiru. P. Dhanraj,Amen Alloys Pvt Ltd,Sathy Road, Coimbatore 107.
Thiru. S. Ravikumar,President,Coimbatore Tiruppur District Micro and Cottage Enterpreneurs
Association, (COTMA),Ganapathy, Coimbatore
Thiru.
K.
Ilango,President,(CODISSIA),Coimbatore
District
Small
Industries
Association,Coimbatore
Thiru.
D.
Balasundaram,Tamil
Nadu
Electricity
Consumer
Association,
Coimbatore 18.
Thiru. T. Ramasubramanian,No.166, Race Course Road,Coimbatore.
Thiru. K. Nagaraj,Sri Moogambigai Steam Laundry,Coimbatore 641 001.
Thiru.
R.
Eswaramoorthy,District
Secretary,Tamil
Nadu
Vivasayigal
Sangam,
Dharapuram, Thiruppur District.

11

Thiru. M. Krishnasamy, Ex. M.C.,No.1, Rakkatchi Garden, Maniakarampalayam, Coimbatore

641 006.

12

Dr. T.B. Ramakrishnan, Medical Superintendent,GKNM Hospital, Coimbatore.

13

Dr. T. Sundararajan,GKNM Hospital, Coimbatore.

14

Thiru.D. S. Hanumantharao,Former Member / TNERC,

15
16
17
18
19

Thiru. T. Velayutham,President,Tamil Nadu Agriculturist Association,Coimbatore.

Thiru. P. Narayanasamy,Agriculturist,Udumalpet.
Thiru. Nallasamy,President,Agriculture Association, Erode.
Thiru. Ramanathan,Agriculturist,Udumalpet.
Thiru. L. Parthiban,South India Imported Machine Knitters Association (SIIMKA) Tiruppur.

20
21
22
23

Thiru. S. Mukunthan,Sri Ayyanar Cold Storage,Madurai.

Dr. K.V. Kirupavathy,Sri Durga Polyclinic,Coimbatore 641 045.
Dr.A.K. Ravikumar,Mowthi Nursing Home Pvt. Ltd.,Vadavalli,Coimbatore.
Thiru.
Ramesh
Belli,Nilgiri
Potato
and
Vegetable
Grower's
Association,
Geetha Lodge Building, Ooty, Nilgiris.
Dr.
R.
Palaniswamy,President,(Indian
Medical
Association),
Nurshing Home Board,NRP Hospitals,Sundarapuram, Coimbatore 24.
Thiru. V. Devarajuh,No.658, Crosscut Road,Coimbatore.
Thiru. B. Srihari,G.C. Member,Indian Chamber of Commerce and Industry,
Coimbatore.
Thiru. K. Kasthurirangaian,Chairman,Indian Wind Power Association.
Thiru.
Soundararajan,President,The
South
India
Spinners
Association,
Flat No. 103-A Block, 1073 & 1074, Avinashi Road,Coimbatore - 641 018.
Dr. Girishkumar,President,Indian Medical Association,Coimbatore.
Thiru. N. Nithyanandan,C/o. Purani Textiles Pvt Ltd.,No.725, Avinashi Road,
Coimbatore.
Thiru. S. Loganathan,574, D.B. Road,R.S. Puram,Coimbatore 2.
Thiru.
A.V.
Varadharajan,Tamil
Nadu
Electricity
Consumers
Association,
8/732, Avinashi Road, Coimbatore 18.

24
25
26
27
28
29
30
31
32

257

33
34

41

Thiru. N. Viswanathan,Indian Institute of Foundarymen,Coimbatore 18.

Dr. K. Selvaraju,Secretary General,The Southern India Mills Association,(SIMA),Race
Course, Coimbatore.
Dr.
K.
Srinivasan,Managing
Director,Premier
Mills
Pvt.
Ltd.,
Race Course , Coimbatore.
Thiru. R. Chokkar, Ex. M.L.A.,Gokul Flats,Rayapettah, Chennai 14.
Thiru. B. Haridas,Kalapatti Road,Coimbatore 14.
Thiru.
V.
Tamil
Selvan,Secretary,Coimbatore
Consumer
Action
Club,
96/226, Tamilkudil Maco Street, Peelamedupudur, Coimbatore 4.
Thiru. V. Venugopal,Tamilaga Vivasayigal Sangam,Coimbatore 22.
Thiru.
M.
Senthilkumar,Secretary,
Tamilaga
Vivasayigal
Sangam,
Coimbatore.
Thiru. Leothomas,St. Joseph's Home for the Aged,Podanur, Coimbatore 23.

42

N. Gururao,Secretary,LIC Pensioners Association,Saroj Nilayam, Coimbatore 18.

43

Thiru. K. Arumugam,President,Erode District Rice Mill Owners Association,

Ammankovil, Sivagiri.
Thiru. C.S. Krishnan,No.6, 4th Street (E), Periyar Nagar,Vadavalli, Coimbatore 641 041.

35
36
37
38
39
40

44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62

Thiru.
N.
Chinnasamy,Convenor,Pensioner's
Welfare
Coimbatore.
Dr. A. Kumanan,R.A. Hospital,1/2, Aryan Soap Colony,Olymbus, Coimbatore.

Organisation,

Dr. J.G. Shanmuganathan,Chairman,Ganga Hospital,313, Mettupalayam Road, Coimbatore

641 043.
Thiru. K. M. Nanjan,Nilgiri Potato and Vegetable Grower's Association,Geetha Lodge, Ooty,
Nilgiri.
Thiru.
N.
Logu,Coimbatore
Consumer
Voice,Opp.
Medical
College,
Coimbatore 14.
Dr. S. S. Sukumar,President,IMA,Erode 1.
Thiru.M. Ramasamy,President, Tiruppur District Rice Mills Owners Association.
Thiru. P. Nandakumar,President,Coimbatore Bar Association,Coimbatore.
Thiru. N. Ranganathan,Advocate,Coimbatore Bar Association,Coimbatore.
Thiru. B.A. Vadooth,VOICE,No.12, Dawood Rawther Street,Mettupalayam.
Dr. S.V. Kandasami,Vedanayagam Hospital,R.S. Puram, Coimbatore.
Thiru
S.
Sivaramakrishnan,Secretary,Consumer
Awareness
Movement,
Coimbatore.
Thiru. C.N. Povaneswaran,A.O.(Retd.), TNEB,Coimbatore 38.
Thiru. M.Boopathy,S/o Muthusamy,Tiruchencode,Namakkal District.
Thiru. K. Navaneethan,S/o Kulanthaisamy,Ganapathy, Coimbatore 6.
Thiru. C. Palanisamy,President,Coimbatore District Powerloom owners Association,
Somanoor.
Thiru. Kuppurathinam,62/1, 9th Cross,Peelamedu, Coimbatore 4.
Thiru. K.P. Rangasamy,6, 7th Street,Alangadu, Tiruppur 4.

258

63
64
65
66
67
68
69
70
71
72
73
74

75
76
77
78

Thiru. N. Ramasamy,Vice Chairman,IIF - Coimbatore Chapter.

Thiru. C. Somasundaram,No.58, D.B. Road,RS puram, Coimbatore 2.
Thiru. R. Govindarajan,General Secretary,Power Engineer's Society of Tamil Nadu.
Thiru. V. Valliappan,Manager,Ennar Spinning Mills,Coimbatore.
Dr. N.S. Kumaresan,KGM Hospital,Chinniampalayam,Coimbatore.
Thiru. V. Gurumoorthy,Coimbatore.
Thiru. K.M. Subramanian,Chief Engineer (Retd.,)Tamil Nadu Electricity Board.
Thiru. O.P. Ponnusamy,President,Ganapathy Industries Traders Welfare Association
(GITA),Coimbatore.
B.
Sai
Vanathi,Kovai
Medical
College
Hospital,
College
of
Nurshing,
Coimbatore.
B. Girija,Kovai Medical College Hospital, College of Nurshing,Coimbatore.
C.
Mohanambal,Kovai
Medical
College
Hospital,
College
of
Nurshing,
Coimbatore.
Thiru. P. Kuzhanthaivel,Kovai Medical College Hospital, College of Nurshing,Coimbatore.
Smitha
Kannadasan,Kovai
Medical
College
Hospital,
College
of
Coimbatore.
S.
Padmapriya,Kovai
Medical
College
Hospital,
College
of
Coimbatore.
M. Rema,Kovai Medical College Hospital, College of Nurshing,Coimbatore.
R. Atchutha,Kovai Medical College Hospital, College of Nurshing,Coimbatore.

Nurshing,
Nurshing,

79
80
81

S. Amritha Singh,PPG College of Nurshing,Coimbatore.

C. Vinothini,PPG College of Physiotheraphy, Coimbatore.
Thiru. M.P. Thangavelu, Chairman,Ashwin Hospital,Ashwin PPG Cancer Hospital,Coimbatore
Cancer Institute & Research Centre,Sathy Main Road, Coimbatore - 12.

82

Thiru. Vellingiri, Vedanthira Maharishi Ashram, Aliyar.

Public Hearing at : Tiruchirapalli,

Date : 15-04-2010

Venue : Taj Kalyanamandapam, Karur Bypass Road, (Opp. to Kalainger Arivalayam,

Tiruchirapalli.

Sl
No.
1
2
3

Name and Address of the Participants

Thiru.
A.
Jayaraman,No.33,
Govindammal
Nagar,Seelanayakkanpatti,
Salem.
Thiru. R. Nagarajan,Secretary,Min Kudiyiruppor Sangam,No.46, Min Nagar, Kajamalai,
Tiruchirapalli -23.
Thiru. Vaiyapuri Marimuthu,3/19, Bharathi Nagar,Tiruchirapalli 12.

259

4
5
6
7

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Thiru. M. Vetrivel,5/D349A, 1st Cross,Anna nagar, Tiruchirapalli 17.

Thiru. K. Chandrasekaran,Vettamangalam Post,Karur District.
Thiru. R.P. Sathishkumar,S/o Ramasamy,Nadaiyanur Post,Karur District.
Thiru. S. V. Angappan,General Secretary,TNEB Accounts and Executive Staff Union,29,
Meeran Sahib Street, Anna Salai Chennai 2.
Thiru. S. Balasubramanian,Secretary,Tamil Nadu
Minsara Payaneettalar Sangam,2A,
Ayodhya, Sai Brindavan,No.1, Ramakrishna Nagar, 2nd Main Road,Adambakkam, Chennai
88.
Thiru.S. Dhanavelu,General Secretary,Federation of Consumer Organisation of Tamil Nadu
and
Puducherry,
5790,
Santhananthapuram
4th
Street,
Pudukottai 622 001.
Thiru. K.P. Rangasamy,Sanmathi Exports,65/C, Benny Main Road, Tiruppur.
Thiru. Kannan @ N. Ramakrishnan,Social Worker,49A/22, 2nd Street, Summer
House,Thennur, Tiruchirapalli 620 017.
Thiru. P. Dharmaraj,21C, NNN Building, Palakkarai,Tiruchirapalli 8.
Thiru. K. Ganesan,10/2, Burma Colony,Thiruverumbur,Tiruchirapalli 13.
Thiru. K. Subramanian,Ex. District Secretary,Thiruchirapalli Puranagar
Cooli Arisi
Aalai,Pettavaithalai, Tiruchipallai District.
Thiru.
S.
Srinivasan,S/o.
R.
Subramanian,39,
P.V.S.
Koil
Street,
Uraiyur, Tiruchirapalli 3.
Thiru. V. Muthukaruppan,No.15, Ponni Nagar,Punganur, Tiruchirapalli 9.
Thiru. N. Sridhar,47, Periyar Nagar,Tiruvanai Koil ,Tiruchirapalli 5.
Thiru.
R.
Raja
Chidambaram,State
Secretary,Thamilaga
Vivasaya
Sangam,
Nagamangalam Post, Perambalur District.
Thiru. C. Rajarathinam,36/7 Pappakurichy, Kattur, Tiruchirapalli 19.
Thiru. S. Kudbudhin,2/200, Nagamangalam,Tiruchirapalli 12.
Thiru. M. Giriraja,4/39C, Ehigiri Mangalam,Tiruchirapalli 102.
Tmt.
M.
Manimalai,Peruvalapur,
Saminathapuram
Colony,Lalgudi
Taluk,
Tiruchirapalli District.
Tmt. G. Sumathi,Kolakudi, Kannagudi Post,Lalgudi Taluk, Tiruchirapalli District.
Thiru.
A.M.
H.
Mohammad
Salim,Al
Aman
Hospital,Koothanallur,
Tiruvarur District.
Tmt.
J.
Nirmala,Pengal
Viduthalai
Munnani,No.4,
Bharathidasan
Nagar,
10th Cross, Thillai Nagar, Tiruchirapalli 18.
Thiru. U. Indhumathi,NO.5, Bahrathidasan Nagar,Thillai Nagar, Tiruchirapalli 18.
Tmt. R. Yogeshwari,85, Gandhipuram,Thillai nagar,Tiruchirapalli 18.
Thiru. V. Neelakandan,District Youth Secretary,Thamilaga Vivasayigal Sangam,27, Pillaiyar
Koil Street,A. Metur Post, Perambalur District.
Thiru.
D.
S.
Rangarajan,Sundaraj
Nagar
Kudiyiruppor
Sangam,
Tiruchirapalli.
Thiru. Rajappa Rajkumar & Sivasubramanian,BHEL Small and Medium Industries
Association,Tiruchirapalli

260

31
32
33
34
35
36

Tmt. R. Bhavani,No.10A, Muslim Street,Market, Tiruchirapalli 1.

Thiru. M. Jeeva,Gandhipuram, Thillai nagar, Tiruchirapalli 18.
Thiru. M. Ramadoss,Gandhipuram, Thillai nagar, Tiruchirapalli 18.
Thiru. G. Ragunath,Thillai nagar, Tiruchirapalli 18.
Tmt. S. Kala,Alwarthope,Tennur, Tiruchirapalli 17.
Thiru.
J.
Krishnaswamy,Assistant
Accounts
Officer,
General Construction Circle,TNEB, Tiruchirapalli.
Thiru. N. Ramajeyam,Accounts Officer,General Construction Circle,TNEB, Tiruchirapalli.

37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58

Thiru.
P.
Malaiyandi,State
Assistant
President,
Thozhilalar Munnetra Sangam,TNEB, Tiruchirapalli 20.
Thiru.
C.R.
Rajasekaran,S/o
C.
Ramaiyan,
North Car Street,Srimushnam.
Thiru. S. Mohammed Ibrahim,State Committee Member,Citizen's for Human Rights
Movement,149, EB Road, Tiruchirapalli 2.
Thiru. S. Raja,23/3, Palakkarai ,Tiruchirapalli 1.
Thiru. G. Raja,18, A.R. Building,Melapudur,Tiruchirapalli 1.
Thiru. N. Ganesan,District Secretary,Tamilaga Vivasayigal Sangam,Jadamangalam, Musiri
Taluk, Tiruchirapalli Dist.
Thiru.
R.
Subramaniam,Deputy
Secretary,
Kaveri Delta Vivasaya Nala Sangam,Tiruchirapalli.
Thiru. A. Leo Joseph,4/168, North kattur,Vasantha Nagar,Kattur.
Dr.
A.
Zameer
Basha,Chairman,Tamil
Nadu
Nurshing
Home
Board,
Indian Medical Association, Tiruchirapalli.
Dr. R. Gunasekaran,State President,Indian Medical Association (Tamil Nadu )
Thiru. S. Palanikumar,Manager,CSI. Mission Hospital,Woraiyur, Tiruchirapalli 3.
Thiru. M. Sekaran,Tamil Nadu Federation and Seva Sangangalin Koottamaipu.
Thiru.
Agri.
M.
Balaiyan,President,Tamil
Nadu
Fish
Farmer's
Welfare
Association,Mannargudi.
Thiru.
Kottur
R.
Rajasekaran,Manila
DMK
Vivasaya
Ani,
Joint Secretary,Mannargudi.
Thiru.
Poora
Visuvanathan,State
President,
Tamil nadu Eari and Atrupasana Vivasayigal Sangam,Tiruchirapalli.
Thiru.
P.K.C.C.
Ganesan,Honarary
President,
Tamil Nadu Fish Grower Welfare Association,Sembanar Koil 609 309.
Thiru.
Purushothaman,State
Correspondent,Tamilaga
Vivasayigal
Sangam,
Salem.
Thiru. O.R. Shriraman, M.C.,95/41B, Big Sowrashtra Street,Tiruchirapalli
620 008.
Thiru.
K.
Mahalingam,Uzhavar
Ayvu
Mandra
Organisar,
Peruvalanallur , Lalgudi Taluk.
Thiru. B.R.S. Gouthaman,Youth Hospital,M.C. Road,Thanjavur 613 007.
Thiru. K. Suresh,CPI - Secretary,1A, Periyamilagu parai,Tiruchirapalli 1.

261

63

Thiru.
U.
Sankar,Divisional
Electrical
Engineer,Southern
Railway
,
Tiruchirapalli.
Thiru. S. Jayakrishnan,Senior DEE / TRO,Southern Railway,Tiruchirapalli.
Thiru.
J.
Selvaraj,President,Tiruchirapalli
District
Consumer
Movement,
18, Mettu Street, Beema Nagar, Tiruchirapalli 1
Thiru.
C.
Palaniyappan,D/18,
Jeeva
Nagar,
Thennur
High
Road,
Tiruchirapalli 620 008.
Thiru. Anbuselvan,News Reporter,21C, NNN Building , Kajamohideen Street,
Palakkarai, Tiruchirapalli 8.

64

Thiru.
S.
Pushpavanam,Secretary,Consumer
No. 2, RMS Building, Tiruchirapalli 18.

59
60
61
62

65
66
67
68
69
70
71

Protection

Council

Tamilnadu,

Thiru. R. Kothandaraman,PA to DIG of Police,(Retd),41/1A, SRS Building, Tiruchirapalli.

Thiru. P.R. Lakshminarayanan,Deputy Secretary,Worldwide Human Rights and
Consumer,51/23, W.C. Street, Srirangam.
Thiru. S. Gopal,MY Way Computer Centre,NO.5, Salai Road, Woraiyur, Tiruchirapalli.
Thiru.
K.
Poosaimani,KKR
Complex,
3rd
Floor,
Chatram
Bus
Stand,
Tiruchirapalli.
Thiru.
V.G.
Purushothaman,Tamilaga
Vivasayigal
Sangam,
PRO - Tiruvannamalai.(Dr. Sivasami Ani)
Thiru.
Sivasooriyan,District
Secretary,Tamilnadu
Vivasayigal
Sangam,
Periyamilagu Parai, Tiruchrapalli.
Thiru.
D.
Bhaskaran,
Ruby
Chlorates
Pvt
Ltd.,
No.11B, Saminatha Sastri Road,Tennur, Tiruchirapalli 17.

262

Annexure IV
ANNEXURE IV - List of Letters received from TNEB

Sl

Date

Letter No

08-02-2010

CFC/Rev/Dir/Tf Cell/EE/F.Agriculture /D.No 29/2010

08-02-2010

CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.31/2010

23-02-2010

CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.53/2010

24-02-2010

CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.58/2010

25-02-2010

CFC/Rev/Tf.Cell/AEE/F.Tariff Petition/D.59/2010

12-03-2010

CFC/Rev/Tf.Cell/AAO/F.Tariff Petition/D.64-1/2010

18-03-2010

CFC/Rev/Dir/Tf Cell/EE/F.Tariff Petition/D.No 97/09

24-03-2010

CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.No 111/2010

05-04-2010

CFC/Rec/Tf Cell/AEE/F. Tariff Petition/D.No 58-1/2010

10

07-04-2010

CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.No 282/2010

11

07-04-2010

CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.No 284/2010

12

12-04-2010

CFC/Rev/Tf Cell/EE/AEE/F.ITES/D.No 295/2010

13

18-04-2010

CFC/Rev/Tf Cell/AAO/F.Tariff Petition/D.No 327/2010

14

20-04-2010

CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.No 330/2010

15

22-04-2010

UO No CE/NCES/EE/WPP/AEE2/F.Tariff Petition/D.1815/10

16

23-04-2010

CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.No 339/2010

17

23-04-2010

U.O. No.SE/GTS/EM/A4/F-VGTPD(Phase II)/D 382/10

18

04-05-2010

CFC/Rev/Tf Cell/AEE/F.Tariff Petition/D.No 365/2010

19

04-06-2010

CFC/Rev/Tf.Cell/AAO/F.Tariff Petition/D.438/2010

20

04-06-2010

CFC/Rev/Tf.Cell/AAO/F.Tariff Petition/D.439/2010

21

22-07-2010

CFC/Rev/Dir/Tf.Cell/EE/F.T.P/D.489/10

No

263

Annexure-V

TAMIL NADU ELECTRICITY REGULATORY COMMISSION

(Constituted under section 82 (1) of Electricity Act 2003)
(Central Act 36 of 2003)

Corrigendum to Order No.3 of 2010 dated 31-07-2010

The following errata are issued to the Tariff Order dated 31-07-2010:Sl.

Para / line / Table

Existing

To be read as

No
1

Second sentence in The

para 1.6.3 (Page 6)

gas

based

stations The

gas

based

stations

(except Basin Bridge) were (except Basin Bridge) were

performing at a of PLF more performing at a PLF of more
than 70% during 2007-08 and than 70% during 2007-08 and
2008-09.

2.11 (Page 19)

Tariff

2008-09.

for

HT

II

Tariff for HT II A Educational

Educational Institutions and Institutions and Hospitals

Recognized Hospitals
3

2.17 (Page 22)

Tariff

for

LT

Institutions,

Educational Tariff

for

LT

Educational

Recognized Institutions, Hospitals, etc

Hospitals, etc
4

3.2.2 (Page 65)

HT - Recognized Educational HT - Educational Institutions

Institutions etc.

Table 7 (Page 65)

Sales

etc.

Projections

Recognized

for

HT Sales

Projections

for

HT

educational educational institutions

institutions
6

3.2.11 (Page 74)

LT - Recognized Educational LT - Educational Institutions

Institutions etc.

Table 20 (Page 74)

etc

Projection of sales by TNEB Projection of sales by TNEB

for LT recognized educational for LT educational institutions
institutions

Table 21 (Page 75)

Sales trend for LT recognized Sales trend for LT educational

educational institutions
9

Table 22 (Page 75)

institutions

Projection of sales by TNERC Projection of sales by TNERC

for LT recognized educational for LT educational institutions
institutions

10

3.2.16.8 (ii) (Page The number of consumers as The number of consumers as

81)

on 31-03-2009 is taken as on 31-03-2009 is taken as

1884750..

1889204 based on subsidy

reconciliation report of TNEB

11

Table 40 (Page 84)

Sales projections by TNERC Sales projections by TNERC

for LT commercial

12

for LT commercial (in MU)

Words in 9th line in equity ration

para

4.1.7

equity ratio

(Page

96)
13

Last

sentence

para

4.1.7

in The

adjustmeny

could

be The

adjustment

could

be

(Page positive or negative and this positive or negative and this

97)

adjustment will be carried out adjustment will be carried out

in the true up petition for in the true up petition for 20102010-11 along with carring 11 along with carrying cost.
cost.

14

First

sentence

in The estimated per MW capital The estimated per MW capital

para 6.2.2.10 (Page of hydro generating plant is cost of hydro generating plant
very high.

130)
15

First

sentence

in The TNEB has not furnished The TNEB has not furnished

para 6.3.19 (Page the

138)

is very high.

details

for

computing the

details

Interest during construction, Interest

for

during

computing
construction,

revenue expenditure incurred revenue expenditure incurred

in project consecration
16

7.3 (Page 159)

In

respect

of

in project construction.

power In

respect

generated in the station generated

in

of

power

the

station

owned by the distribution owned by the distribution

licensee and distributed by licensee and distributed by
the licensee itself in his the licensee himself in his
area

of

supply,

the area

of

supply,

the

generation

tariff

of

the generation

tariff

of

the

station shall be considered station shall be considered

as the transfer price to the as the transfer price to the
distribution licensee which distribution licensee which
will be determined in the will be determined in the
licensees

tariff

petition licensees

itself.
17

tariff

petition

itself.

Para 7.10.1 (Page The TNEB procures coal from The TNEB procures coal from
the following sources through the following sources through

164)

multi model transport (rail, multi model transport (rail, seasea-rail) under coal shipping rail)
agreement

for

the

under

coal

supply

power agreement for the power plants

plants
18

First row in Table HFO (Rs / kg)

HSD/LDO (Rs / kg)
136 in para 7.14.7

HFO (Rs / kl)

HSD/LDO (Rs / kl)

(1) (Page 172)

19

7.14.8..2

(Page Regulation 7 (7) (i) of the Regulation 6 (7) (i) of the

173)

TNERC

Tariff

Regulations TNERC

specify the following

20

Tariff

Regulations

specify the following

Last row in tables Energy Rate (in paise / unit)

Energy Rate (Rs / unit)

158, 159 160 and

161 in para 7.15.4.1
(Page 185 and 186)
21

8.1 (Page 191)

Determination
Transmission Charges

22

9.4.1.1 (Page 198)

9.4.9 (Page 201)

of

Annual

Transmission Charges

Power purchase cost for the Power purchase cost for the
control period

23

Annual Determination

control period (Rs in Crores)

The comprehensive Revenue The comprehensive Revenue

Requirement claimed TNEB is Requirement claimed by TNEB
compared with the revenue is compared with the revenue
requirement admitted by the requirement admitted by the
Commission for distribution Commission
licensee.

licensee.

for

distribution

24

9.11.19 under the

column

40 / kw

40/ kw or part thereof of the

Monthly

minimum

contracted load

(in

Rupees) (Page 226)

25

Fourth

line

in pump sets of Government coil pump sets of Government oil

condition (1) under seed farms

seed farms

para 9.11.20 LOW

TENSION

TARIFF

IV (Page 228)
26

Second sentence in Noncompliance shall invite Noncompliance

shall

invite

para 9.11.21 (3) compensation charges as per compensation charges as per

(Page 229)

27

Revenue

TNEBs terms and conditions

gap 7905.04

TNERCs Regulations

7905.40

arrived by TNERC
for the year 2010 11

in

under

table

184

para

9.14

(Page 232)
28

9.15.3 (1) (Page The case of Orissa relates to The case of Orissa relates to
234)

treatment the difference in treatment of the difference in

revenue due to different basis revenue due to different basis
of calculation of T & D losses of calculation of T & D losses
adopted

by

the

GRIDCO adopted by the GRIDCO (41%)

(41%) and the OERC (35%).

29

The

first

and the OERC (35%).

three The Commission has arrived The Commission has arrived at

sentences in sub- at the gap for these years as the gap for these years as
crores, Rs.7905.40 crores, Rs.6062.24

para (9) of para Rs.7905.04

9.15.3 (Page 235)

Rs.6062.24
Rs.3489.18

crores

and crores and Rs.3489.18 crores

crores respectively and this gap is

respectively and this gap is after allowing a tariff increase

after allowing a tariff increase of Rs.1650.46 crores. It is to
of Rs.1650.46 crores. It is to be noted here that the last tariff

be noted here that the last hike in Tamil Nadu was in

tariff hike in Tamil Nadu was March 2003 and the TNEB has
in June 2003 and the TNEB not preferred any tariff revision
has not preferred any tariff thereafter,
revision
eventhough

eventhough

their

thereafter, operating costs have been

their

operating going up.

costs have been going up.

30. The existing tariff schedule under para 9.11.21 (Page 229) shall be read as below:
Existing:
9.11.21 LOW TENSION TARIFF V:
Tariff

Consumption

slabs

Energy

Fixed charges

Range in kWh(units) and charges in

(Rupees /

billing period (one or paise / kWHr

Month)

Monthly
minimum (in
Rupees)

two months)
Low

From 0 to 50 units per

Tension

month ( or)

Tariff V

0 to 100 units for two

430

30

530

30

650

30

months
From 51 to 100 units per
month ( or)
101 to 200 units for two
months
From 101 and above per
month ( or)
201 and above for two
months

40

To be read as:
9.11.21
Tariff

LOW TENSION TARIFF V:

Consumption

slabs

Energy

Fixed

Monthly

Range in kWh(units) and charges in

charges

minimum

billing period (one or two paise /

(Rupees /

(in Rupees)

months)

Month)

Low

0 to 50 units per month ( or)

Tension

0 to 100 units for two

Tariff V

months

kWHr
430

30
40

(as per para 9.10.10 of the

order)
From 0 to 100 units per

530

30

month ( or)
0 to 200 units for two
40

months
From 101 and above per

650

30

month ( or)
201 and above for two
months

-Sd(K.VENUGOPAL)
MEMBER

-Sd(S.KABILAN)
CHAIRMAN