Kumari Palany & Co

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What is the reason for the power cut?

Posted on: 20/Sep/2018 4:30:10 PM
When there was a shortage of power, doubts were raised whether the 100 Units of free electricity given by the state government is responsible for this shortage. In Tamil Nadu, all the houses with electricity enjoy the benefit of the free use of the 1st 100 units of power consumption. Further, u tp usage of 500 Units, a subsidy is offered. The state government of Tamil Nadu bears the expense incurred by the TANGEDCO in this regard.

Presently, the generation of power is sufficient to meet the current demand. Though the demand is more sometimes, due to factors like problems in thermal power stations and low supply of power from the central grid, etc., TANGEDCO faces the shortage of power.

Because of this, TANGEDCO officials recommend the industrial plants and factories to install generators in order to ensure unbroken power supply to the residential areas as the priority.

Accordingly, due to other issues such a the recent drop in wind-power generation, coal shortage, etc., there was a shortage of power. Because of this, power cut had to be imposed in villages for longer periods. At the same time, uninterrupted power was organised for the industrial plants and factories.

The doubts were raised whether the supply of the 1st 100 units free is one of the reasons.

The TANGEDCO circles offered an explanation in this regard that the daily demand for power in Tamil Nadu is an average 140000 MW. 40% of this is consumed by the large industrial pants.

However, at the same time, the charges earned through this 40% requirement of the industrial plant plays a large role in the revenues earned by TANGEDCO.

A yearly expense of Rs. 4000 Crores is incurred through the free supply of electric power and the subsidised rates offered.

It is reasonable if the concession of the free power supply is given exclusively to the lower income groups. However, offering the 1st 100 units of free power consumption for all categories including politicians, industrialists, and high-income earners is also in current practice!

So, when encountering the shortage of power, TANGEDCO did not want to lose the revenue earned through industrial units, it gave room for the thought whether TANGEDCO opted to cancel the free 100-units scheme. So, TANGEDCO can now preferably to take a decision to offer free 100 units supply only to the lower income and the poorer sections of the society. It can be stopped for the other consumers. With the revenue earned through such a measure, TANGEDCO can invest in many other schemes including new electricity plants. Only this approach can make the state of Tamil Nadu to have surplus power!