Tamil Nadu Electricity Ombudsman has ruled in favour of Indian Oil Corporation (IOC) Limited by stating that Tangedco could not change the tariff category without nod from the State power regulator.
In its petition, IOC said it owns and operates Chennai-Trichy-Madurai cross country product pipeline installation at Asanur availing tariff under HT-III category. After obtaining factory licence, the company said it had requested for tariff change and as per the regulations of Tamil Nadu Electricity Regulatory Commission (TNERC), its installation was categorised under HT-IA from April 1, 2012 onwards till August 2019, it added.
IOC said it was informed that their service connection has been changed to HT-III and current consumption charges for the month of September 2019 and October 2019 have been billed under that category.
IOC said it had taken up the issue with Tangedco and there was no favourable response and the Consumer Grievance Redressal Forum of Kallakurichi Electricity Distribution Circle also ruled against it. The company said it paid the revised tariff under protest. The IOC said the reason given by Tangedco for categorisation under HT-III is that the supply is being utilised for pumping of oil and there is no manufacturing process. However, it noted as per the provisions of the Factories Act 1948, pumping of oil is a manufacturing process.
In its response, the Tangedco said the TNERC in its 2017 tariff order had clearly mentioned that the registered factories such as LPG bottling units are classified as non-manufacturing industries. The IOC pointed out that as per TNERC 2017 tariff order, HT Tariff 1A is applicable to all manufacturing and Industrial establishments and registered factories including tea estate, textiles, fertilizer plants, steel plants, heavy water plants, chemical plants. However, registered factories such as LPG bottling units which are non-manufacturing in nature are not to be included in this tariff category. It also said the TNERC had noted that in case Tangedco identifies the need for excluding any other activity, then the State power utility should submit the necessary proposal for the same.
S. Devarajan, Electricity Ombudsman, accepted the argument putforth by IOC and directed Tangedco to reinstate the tariff under HT Tariff IA and refund the excess amount paid.
