The Tamil Nadu Generation and Distribution Corporation (Tangedco) will not collect peak hour charges from MSMEs (micro, small and medium enterprises) until installation of smart meters.
According to an order issued by the MSME Department on November 10, 2023, the Tamil Nadu government has sanctioned ₹196.1 crores as a subsidy amount to Tangedco towards the non-collection of the peak hour charges (till smart meters are installed) and for a reduction of solar rooftop network charges by 50%, for these units. All low tension industries falling under tariff III B will get this benefit.
Tangedco introduced peak hour charges for MSMEs in September 2022, increased fixed charges by 430% and levied network charges for those units that had rooftop solar energy systems.
TMSME industrial associations, under the banner of the Tamil Nadu Industrial Electricity Consumers Association, have been staging protests across the State for the past two months, demanding a downward revision of the fixed charges and a removal of peak hour charges and the network charges.
J. James, who is part of the Association, said the order was only for the implementation of an announcement made by the MSME Minister, T.M. Anbarasan in the Legislative Assembly earlier. “The main demand is the reduction of fixed charges, which the government is not willing to consider. Instead of 430%, Tangedco should have increased it by 10 % or 15 % so that the industries can absorb the hike,” said Mr. James.
“Unlike larger industries, MSMEs do not have the resources to buy renewable energy from the power generators. We instal solar rooftop for captive use. Why should we pay the government to use the power we generate,” asked M. Jayabal, also a member of the Association.
The MSMEs will continue their protests and the unit owners and workers will form human chains in all the districts on December 4, he said.
The Open-end Spinning Mills’ Association president G. Arulmozhi said that over 600 open-end spinning mills have been staging a strike since November 7, as the production costs are higher than the yarn costs. The government should remove the peak hour charges for smaller industries rather than only postponing this till the installation of smart meters, he said.
