S. Devarajan, Tamil Nadu’s Electricity Ombudsman, has ruled that the collection of costs towards the installation of distribution transformers along with associated equipment, is in violation of regulations and directives of the State power regulator and directed Tangedco to refund the excess estimate charges collected from five Chennai-based real estate developers.
He also instructed Tangedco to prepare the estimate in line with regulations of the Tamil Nadu Electricity Distribution Code and revise the estimate for all such similar cases and refund the excess charges collected from consumers.
In separate petitions, Kamalalaya Hi Soft Limited, Navin Housing and Properties Pvt. Ltd, Akshaya Pvt. Ltd., Casa Grand Pvt. Ltd, High Value Developers had sought refunds for the excess charges, including the equipment costs paid under protest. Transformers/equipment/cables/line costs are also included in the estimate charges contrary to regulations. The demand was without any approval from the State power regulator, they said.
The Ombudsman noted that regulation 29(11)(c) of the Tamil Nadu Electricity Distribution Code, which came into effect from January 27, 2021 clearly states that the cost of installation works from the distribution transformer to the consumer’s meter including portion of any HT line within the consumer’s premises shall alone be collected from the consumer.
Collection of costs towards installation of distribution transformers with associated equipment/accessories viz. AB switch, HG Fuse, DT structure /pole by Tangedco is in violation of the regulations and directions issued by Tamil Nadu Electricity Regulatory Commission (TNERC), he said.
A compliance report shall be submitted within 60 days from the order dated September 24, 2021, the Ombudsman said.
K. Kathirmathiyon, secretary, Coimbatore Consumer Cause welcomed the order. He had written to the TNERC on the issue urging suo motu action against Tangedco for non-compliance with regulation with regards to collection of charges. But so far no action was taken by them. The Ombudsman has now come to the rescue of all affected consumers in the State which is a great relief, he said.