TNERC junks TNPDCL’s plea seeking waiver of belated payment  surcharge for local bodies

Tamil Nadu Electricity Regulatory Commission (TNERC) rejected a plea by Tamil Nadu Power Distribution Corporation Ltd. (erstwhile Tangedco) for waiver of belated payment surcharge to the tune of ₹137.13 crore in respect of payment dues by all the local bodies. 

The prayer sought for by TNPDCL seeking permission for waiver of the belated payment surcharge which is payable by the local bodies is not sustainable on facts as well as law, it said.

On account of non-payment of electricity charges by majority of the local bodies in Tamil Nadu, as on March 31, 2023, the dues accumulated to ₹1,618.54 crore which include ₹137.13 crores towards belated payment surcharge, TNERC noted.

Since the dues have reached gigantical proportions, a meeting chaired by the Chief Secretary of Tamil Nadu was held on March 8, 2023. In the meeting, it was decided that on payment of 50% of the outstanding dues by the local dodies in 24 monthly instalments, Tangedco’s board may consider waiver of belated payment surcharge, among other measures, it said. 

As per the status report filed by Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) only 32% of the local bodies have paid the consumption charges due and rest of the 68% local bodies have not evinced any interest to avail the concession proposed to be offered by TNPDCL, it pointed out. 

TNERC also issued various directives to TNPDCL. 

TNPDCL shall initiate action for recovery of consumption charges and belated payment surcharge (BPSC) due from the local bodies who are in arrears by issuing prior notice and fixing reasonable timeline for the payment of the arrears, it said. 

If a local body makes default in payment of the arrears of consumption charges and BPSC within the timeline set out in the notice or makes default in payment of any monthly instalment mentioned in the notice, TNPDCL shall contemplate action for disconnection of the service connection in respect of which default has been made on issuance of due notice, TNERC said. 

While deciding to effect disconnection on account of default, in regard to service connections provided to the essential services such as street lights, and hospitals of the concerned local body, TNPDCL may contemplate providing additional opportunity for payment of the dues, it said.