High tension (HT) electricity consumers in the textile industry, Chief Minister M.K. Stalin requested the Tamil Nadu Electricity Regulatory Commission (TNERC) to issue directions to allow collection of 20% of billable demand or recorded demand as monthly maximum demand (MD) charges.
The Southern India Mills Association and the Tamil Nadu Electricity Consumers Association, in separate memoranda submitted to Mr. Stalin, said that Section 108 of the Electricity Act should be invoked. % of their sanctioned demand or up to the recorded demand alone instead of claiming demand fee at 90% level.
Due to Ukraine-Russia war, inflation in western countries and reduction in purchasing power of consumers, capital, labor and power consuming textile mills have been affected by the drop in demand for the past one and a half years. Most of the mills in these countries are operating at only 50% or less of capacity and are therefore not utilizing the full sanctioned load.
But, they will have to pay 90% of the accepted demand as MD fee. The tariffs are adding to the financial burden of textile units that are already finding it difficult to operate.
In such exceptional circumstances, the licensee (Tamil Nadu Generation and Distribution Corporation) may reduce the MD charges collected if TNERC allows it to do so. The unions appealed to the Chief Minister to issue necessary guidelines and provide relief to textile units.
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