‘Tangedco cannot change tariff category without regulator’s nod’
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Tamil Nadu Electricity Ombudsman has dominated in favour of Indian Oil Corporation (IOC) Limited by stating that Tangedco couldn’t change the tariff category without nod from the State energy regulator.
In its petition, IOC stated it owns and operates Chennai-Trichy-Madurai cross nation product pipeline set up at Asanur availing tariff underneath HT-III category. After acquiring manufacturing unit licence, the corporate stated it had requested for tariff change and as per the laws of Tamil Nadu Electricity Regulatory Commission (TNERC), its set up was categorised underneath HT-IA from April 1, 2012 onwards until August 2019, it added.
IOC stated it was knowledgeable that their service connection has been modified to HT-III and present consumption prices for the month of September 2019 and October 2019 have been billed underneath that category.
IOC stated it had taken up the problem with Tangedco and there was no beneficial response and the Consumer Grievance Redressal Forum of Kallakurichi Electricity Distribution Circle additionally dominated towards it. The firm stated it paid the revised tariff underneath protest. The IOC stated the explanation given by Tangedco for categorisation underneath HT-III is that the provision is being utilised for pumping of oil and there’s no manufacturing course of. However, it famous as per the provisions of the Factories Act 1948, pumping of oil is a producing course of.
In its response, the Tangedco stated the TNERC in its 2017 tariff order had clearly talked about that the registered factories equivalent to LPG bottling items are labeled as non-manufacturing industries. The IOC identified that as per TNERC 2017 tariff order, HT Tariff 1A is relevant to all manufacturing and Industrial institutions and registered factories together with tea property, textiles, fertilizer vegetation, metal vegetation, heavy water vegetation, chemical vegetation. However, registered factories equivalent to LPG bottling items that are non-manufacturing in nature are to not be included on this tariff category. It additionally stated the TNERC had famous that in case Tangedco identifies the necessity for excluding another exercise, then the State energy utility ought to submit the mandatory proposal for a similar.
S. Devarajan, Electricity Ombudsman, accepted the argument putforth by IOC and directed Tangedco to reinstate the tariff underneath HT Tariff IA and refund the surplus quantity paid.