TNPDCL proposes to levy additional surcharge of ₹0.10 per unit on open-access power consumers

Tamil Nadu Power Distribution Corporation Ltd has proposed the levying of an additional surcharge of ₹0.10 per unit, payable by all open-access consumers who purchase power from third-party sales and power exchanges.

The Tamil Nadu Power Distribution Corporation Limited (TNPDCL) has proposed the levying of an additional surcharge of ₹0.10 per unit, payable by all open-access consumers who purchase power from third-party sales and power exchanges. The proposal is to levy the surcharge from April 1, 2025, to September 30, 2025.

The open access concept allows consumers such as industrial users and commercial buildings to buy cheaper power directly from private generators. The move aimed to increase competitiveness and efficiency in the power sector, and the loss of revenue suffered by the TNPDCL was compensated by a cross-subsidy surcharge and an additional surcharge.

In its petition to the Tamil Nadu Electricity Regulatory Commission (TNERC), TNPDCL said it had a total contracted capacity of 23,959.86 MW from both conventional and non-conventional sources. The installed capacity from conventional sources is 15,834.36 MW.

So far in 2024-25, the maximum power demand met was 20,830 MW on May 2, 2024, and a maximum daily consumption of 454.320 million units was met on April 30, 2024, it said.

TNPDCL said due to open access, it had a stranded capacity of 410.55 MW and incurred a fixed charge of ₹234.79 crore on this and sought for the levy of an additional surcharge.

TNPDCL has invited comments on its proposal by March 13, 2025.

Earlier, the TNERC had approved the levy of an additional surcharge of ₹0.54 per unit from October 1, 2024, to March 31, 2025, against the State’s power utility proposal for an additional surcharge of ₹1.06 per unit.