Open access power consumers have approached the Tamil Nadu Electricity Regulatory Commission seeking relief from the high cross-subsidy surcharge levied by the utility.

The latest National Tariff Policy notified in January 2016 allows public sector utilities levy CSS on all segments of open access consumers up to a ceiling of 20 per cent of the electricity tariff set for that segment.

But the CSS levied by the Tamil Nadu Generation and Distribution Corporation (Tangedco) continues to follow the National Tariff Policy of 2006 which does not set a ceiling on CSS. Open access consumers, the large power users, are shelling out double or more as CSS.

The Open Access Users Association, a registered, national body representing the open access consumers had petitioned the Commission, which issued notice to Tangedco today.

The association maintainted that open access – allowing large power consumers to buy power directly from private generators – was aimed at enhancing competitiveness and efficiency in the power sector.

CSS compensates the public sector utility for the loss of revenue and also provides for the use of the transmission and distribution infrastructure. But it cannot constrain open access.

The latest policy provides for a CSS of ₹1.46 to ₹1.98 a kWh depending on the tariff levied on various segments such as HT Industry which pays ₹8.20 a kWh; Government Educational Institution ₹ 7.32; Private Educational Institutions ₹7.74; Commercial and other HT Consumers ₹9.93; Railway Traction ₹7.82.

But the CSS now ranges from ₹2.36 to ₹5.23 a kWh based on the older policy which does not set a ceiling on CSS. The petition urged the Regulator to re-determine the CSS in line with the new policy.

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