2 weeks Ago
Chennai: Tamil Nadu Generation Distribution Corporation ( Tangedco ), which disconnects power supply to households when there is a default on payment a day after the last date, is yet to collect dues of Rs 5,069 crore towards electricity bills from local bodies . Chennai and adjoining districts owe the state-owned power utility company Rs 936 crore till Aug 31, records show. At least 6.
55 lakh connections under the low tension IIA category, meant for public lighting and water supply, together owe Tangedco Rs 5,069 crore. The company, however, has not declared the dues from domestic (IA), commercial (V), and high-tension connections held by the govt. Until March 2023, about 90,292 such connections owed Rs 1,400 crore as per the 14th annual report of Tangedco, which is reeling under Rs 1.
5 lakh crore debt. "There is an increase, but it is small compared to dues under IIA," said an official. Among govt agencies, the Tamil Nadu Water Supply and Drainage (TWAD) Board is the biggest defaulter with an arrear of more than Rs 2,500 crore.
Municipal and Water Supply (MAWS) officials were not available for comment. "There is an increase in dues because there is an annual revision of tariffs since 2022. Energy for public lighting and water supply is now more expensive than ever," a Tangedco official said.
Experts point out that Tangedco's net loss for 2022-23 of Rs 10,868 crore could have been reduced by 60% had Tangedco collected dues from govt and local bodies. "The Electricity Act was evolved to stop the exploitation of the power sector by state govt," said Neelakanta Pillai, a retired Tangedco staffer and city-based activist. The Act and subsequent regulation of TNERC ensure Tangedco gets a subsidy for free power supplied to consumers in advance.
"What stops Tangedco from collecting its rightful dues from local bodies for their power consumption? The dues should be collected along with the belated payment surcharge (BPSC) at 6%, which will bring another Rs 306 crore," he said. Tangedco officials say most local bodies, including Greater Chennai Corporation, are paying their arrears until 2022 in over 24 instalments. "Steps are being taken to recover the entire arrears," said officials.
Customers complain that Tangedco, which snaps supply a day after the due date for domestic customers, has been lenient with govt agencies. The delay in collecting arrears may affect funds from the Centre under various schemes, said consumer activist C Selvaraj, general secretary of NGO FACT India. "If Tangedco pays its dues for the land leased to set up transformers, and if the local bodies pay the bills in time, this situation will not arise," he says.
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