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| 16th Annual Report | 1

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION(Formerly Tamil Nadu Electricity Consumers Association)

Regd. No. 181-8524/1998 – CIN.No. U37102TZ1998GAP0085241st Floor, SIEMA Building, 8/4, Race Course, Coimbatore - 641 018

Phone : (0422) 4351400 E-mail : [email protected] Web : www.tecaonline.in

BOARD OF DIRECTORS FOR THE YEAR 2013-2014

1) Mr D Balasundaram President

2) Mr N Visvanathan Vice-President

3) Mr S Dinakaran Vice-President

4) Mr R Nandagopal Secretary

5) Mr C K Narayanaswamy Treasurer

6) Mr N Murugesan Director

7) Mr P Kumar Director

8) Mr P Thomas Manogaran Director

9) Dr K Venkatachalam Director

10) Mr B Pattabi Raman Director

11) Mr R Krishnaswamy Director

12) Mr K Sathiavan Director

AUDITOR:

Mr P Mahendran B.Sc., FCA ,

Coimbatore

BANKERS :

Indian Bank, P.N. Palayam, Coimbatore

Kotak Mahindra Bank, Avinashi Road, Coimbatore.

LEGAL ADVISOR :

Mr N L Rajah B.Sc., B.L., Advocate, Chennai

FACEBOOK

[email protected]

TWITTER

[email protected]

GOOGLE GROUPS

[email protected]

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

OFFICE BEARERS

PAST PRESIDENTS

Thiru D BalasundaramPresident

Thiru N VisvanathanVice- President

Thiru S DinakaranVice- President

Thiru R Nandagopal

Secretary

Thiru C K Narayanaswamy

Treasurer

Thiru C R SwaminathanFounder President, 1998-2003

Thiru R Palaniswamy2003-2005

Thiru S V Arunachalam2005-2007

Thiru A V Varadharajan2007-2010

Thiru Mahendra Ramdas2010-2012

| 16th Annual Report | 2

Directors' Report

For the Period 01st April 2013 to 31st March 2014

Presented at the 16th Annual General Meeting

Dear Members,

Our Association was incorporated in the year 1998 to create awareness among consumers of

electricity in Tamil Nadu about the new policy initiatives being taken by the Government of India and

to safeguard their interests. In the last sixteen years the Association has been exerting itself with

these objectives.

TECA works with various trade associations in industry, commerce and service sectors across the

State on common issues. It was instrumental in the formation of the Tamil Nadu Electricity

Consumers' Joint Council (TN EC JC) in 2012 and houses its offices. TN EC JC has representatives from

more than 140 trade associations in it.

1. TECA Membership Status:

Number of members as on 01-04-2013 : 629

Number of members joined during the year 2013-2014 : 15

Members resigned during the year 2013-2014 : 06

Total members as on 31-03-2014 : 638

Total Sanctioned Demand of TECA members : 924.6MW

2. Directors elected to the Managing Committee during the Year 2013-14

The General Body elected the following member's to the Managing Committee during the 15th

AGM held on 04.10.2013.

Sl. No Name of the Director Address

01. Mr R Krishnaswamy Managing DirectorSripathi Paper & Boards Pvt LtdRamani's Regency1680/31, Trichy RoadRamanathapuram, Coimbatore - 45

02. Mr K Sathiavan General Manager & SecretaryPandian Chemicals LtdP. B. No. 60, 17-A, Vallabhai Road,Chokkikulam, Madurai 625002

03. Dr K Venkatachalam Chief AdvisorTamil Nadu Spinning MillsAssociation (TASMA)#2, Karur Road, (Near Beschi College),

Modern Nagar, Dindigul - 624 001.

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

Members are requested to update their email addresses and Mobile, Telephone numbers for

speedier communication. They are also requested to ask their friends and associates to

become TECA Members.

| 16th Annual Report | 3

The General Body re-elected the following member to the Managing Committee during the 15th AGM

held on 04.10.2013

01. Mr S. Dinakaran Joint Managing DirectorSambandam Spinning Mills LtdKamaraj Nagar Colony, P B No. 1 , Salem - 636 014

3. The Board of Directors for the Period 2013-2014

1) Mr D Balasundaram, Coimbatore President

2) Mr N Visvanathan, Coimbatore Vice-President

3) Mr S Dinakaran, Salem Vice-President

4) Mr R Nandagopal, Coimbatore Secretary

5) Mr C K Narayanaswamy, Coimbatore Treasurer

6) Mr N Murugesan, P. Puliampatti Erode Dt. Director

7) Mr P Kumar, Mettur, Salem Dt. Director

8) Mr P Thomas Manogaran, Chennai Director

9) Dr K Venkatachalam, Dindigal Director

10) Mr B Pattabi Raman, Trichy Director

11) Mr R Krishnaswamy, Sivakasi Director

12) Mr K Sathiavan, Madurai Director

The present Office Bearers were elected in the Board of Directors' meeting held on 05.10.2013.

4. Directors' attendance in Board Meetings:

Sl. No. Name of the Office Bearers and Number of Meetings Number of

Directors held during the Meetings

period attended

1 Mr D Balasundaram – President 04 04

2 Mr N Visvanathan – Vice President 04 04

3 Mr S Dinakaran- Vice President 04 01

4 Mr R Nandagopal – Secretary 04 03

5 Mr C K Narayanaswamy- Treasurer 04 04

6 Mr N Murugesan 04 04

7 Mr B Pattabi Raman 04 00

8 Mr P Thomas Manogaran 04 01

9 Mr P Kumar 04 01

10 Dr K Venkatachalam 03 02

11 Mr R Krishnaswami 03 01

12 Mr K Sathiavan 03 01

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

| 16th Annual Report | 4

5. Directors retiring by rotation

The Following Managing Committee members are retiring at the end of the 16th Annual General

Meeting.

Mr N Visvanathan, Mr B Pattabhiraman, Mr P Kumar, and Mr Thomas Manogaran are retiring by

rotation. Mr N Visvanathan is not eligible for re-election since he has been elected two consecutive

terms of office as director. Mr B Pattabhiraman and Mr P Kumar, being eligible, seek for re-election

and Mr Thomas Manogaran, though eligible, does not offer himself for re-election.

The Board of Directors, on its own behalf and on behalf of the Members of TECA, thanks all the

Directors vacating the offices for the guidance and assistance given to TECA during their tenure.

6. Auditor

The Auditor of the Association for the year 2013-2014, Mr P Mahendran B.Sc., FCA, retires at the

conclusion of the 15th Annual General Meeting, and he is eligible for re-appointment.

7. Comments on the annual Accounts

The audited accounts for the year ending 31st March 2014 are enclosed.

During the year the Association had an income of Rs 29,28,976/- and expenditure of Rs 22,31,801/-

leaving a surplus of Rs 6,97,175/-.

The funds of the Association are kept invested in bank deposits and mutual funds.

After sufficient funds are gathered, the Association intends to acquire space for its offices.

There are no comments of the Auditor required to be responded to by the Board.

8. Economic situation during the Year

India is the tenth-largest in the world by nominal GDP and the third-largest by purchasing power

parity (PPP). On a per-capita-income basis, India ranked 141st by nominal GDP and 130th by GDP

(PPP) in 2012, according to the IMF. India is the 19th-largest exporter and the 10th-largest importer

in the world. The economy slowed to around 5.0% for the 2012–13 fiscal year compared with 6.2% in

the previous fiscal. It further slowed down to 4.7% during the year 2013 - 14. According to Moody's,

the Economic Growth Rate of India would be 5.5% in 2014-15. India's GDP grew by 9.3% in 2010–11;

thus, the growth rate has nearly halved in just three years. GDP growth rose marginally to 4.8%

during the quarter through March 2013, from about 4.7% in the previous quarter. The government

has forecast a growth rate of 6.1%–6.7% for the year 2013–14, whilst the RBI expects the same to be

at 5.7%

9. Electric power supply situation in India in the year 2013-14 & Anticipated power

supply situation in the year 2014-15

A write up on the major developments in the Electricity Sector in India during the last year is enclosed

as Annexure 3.

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

| 16th Annual Report | 5

S No Date Events / Announcements

1 06.05.2013 Hon'ble Supreme Court disposed of a public suit seeking to halt

the commissioning of Koodankulam Nuclear Power Plant with a

direction to the government to submit a report on the compliance

of all safety steps before the plant is commissioned.

2 11.06.2013 Appellate Tribunal for Electricity (APTEL) has set aside the

'banking' and 'wheeling and transmission charges' prescribed in

the tariff order of the Tamil Nadu Electricity Regulatory

Commission (TNERC).

3 20.06.2013 Tariff Revision Order released T.P No. 1 of 2013 and rate revised

from 21.06.2013

4 13.08.2013 TANGEDCO has lifted 40% power cut both in respect of energy

and demand during the normal hours and allowed to consume

upto 60% of the base demand and base energy during the peak

hours with effect from 14th August, 2013 to 30th September 2013

5 25.08.2013 Commercial Operation Declaration(COD) was achieved for TNEB

NTPC Joint Venture Plant- Unit-2 at Vallur (500MW)

6 01.10.2013 Chief Minister announced 20% Power Cut to HT Industries during

normal Hours and 90% Power Cut during evening Peak Hours

between 6.00pm to 10.00pm.

7 12.10.2013 Commercial Operation Declaration(COD)was achieved for Mettur

Thermal Power station stage 3 (600MW)

8 22.10.2013 Kudankulam nuclear power plant Unit-1 went on-stream after 12 years

and transmitted 160MW of electricity to the southern grid.

9 31.12.2013 The Raichur-Sholapur 765KV single circuit transmission line was

interconnected with the national grid, thereby achieving the one

nation-one grid-one frequency system.

10. The events and announcements made in Electricity sector in India during the Year

2013-14

A note on the matter is given in the Annexure 4.

11. Electric power supply situation in Tamil Nadu in the year 2013-14

A write up on the electric power supply situation in Tamil Nadu during the year 2013-14 is given in

Annexure 5.

12. The events and announcements made in Electricity Sector in Tamil Nadu during the

Year 2013-14

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

| 16th Annual Report | 6

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

13. The Developments in Electricity Sector in Tamil Nadu after March 2014.

14. TECA's Endeavours

TECA had taken a number of initiatives in the matter of promoting the interests of its members during

the year 2013-14. A summary of these efforts is given in Annexure 1 and Annexure 2.

10 09.01.2014 Sri. G Rajagopal, Former Director – Finance-TANGEDCO was appointed

as member of the Tamil Nadu Electricity RegulatoryCommission (TNERC).

11 21.01.2014 APTEL set aside TNERC Order on Tamil Nadu Solar Power

Obligation vide order dated 21st January 2014

12 27.02.2014 Chief minister J Jayalalithaa laid the foundation for a supercritical thermal

power project at Ennore near Chennai.

13 28.02.2014 Third Unit of TNEB-NTPC Joint Venture Plant was synchronized

14 20.03.2014 Commercial Operation of North Chennai Thermal Power Station

Unit-1 declared

S No Date Events / Announcements

1 28.05.2014 Chief Minister has announced no power cut for Industries and

commercial units from June 1, 2014

2 09.06.2014 Sri. S Akshyakumar, Former Managing Director – TANTRANSCO

was appointed as Chairman of Tamil Nadu Electricity Regulatory

Commission (TNERC).

3 12.06.2014 Chief Minister was inaugurated power projects worth Rs. 394

crores. This includes 51 Substations in various parts of Tamil Nadu

and setting up of a 110KV power station in Tiruchirapalli District.

4 17.06.2014 TANGEDCO has achieved new load peaks of performance

on June 17, by supplying 292.233 Million Units of electricity

and catered to a maximum demand of 13,665 MW.

The previous highest in energy supplied was 289.659 MU on June

14 and 289.541 MU on April 23 and in terms of demand the

previous high was 13,091 MW on May 16, 2104.

| 16th Annual Report | 7

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

15. Participation in Consumer Protection Council meetings at various Regions

TECA has been attending the Consumers Protection Council meeting conducted by the Chief Engineer /

Distribution of various regions. During these meetings the grievances of members were conveyed to

the concerned authorities for necessary action. The Details of the meeting are given below.

Region Date of meeting

Coimbatore Region 29.06.2013

25.10.2013

18.01.2014

Tirunelveli Region 15.06.2013

28.09.2013

27.12.2013

16. Communications with Members

a. News Letter Issued During the Year

We have circulated three issues of our newsletter to the members. We are proud to say that we are

receiving warm appreciation from our members, other industry associations and government officials

for this newsletter.

We take this opportunity to thank all the members, and advertisers for their part and the suggestions to

improve the newsletter.

b. TECA News Clippings

We have circulated News Clippings through email twice weekly. These reports on the electricity sector

keep our members abreast of the developments in the country. We are proud to say that we are

receiving warm appreciation for this from our members

c. Website

We are updating the information about the Circulars, Event alerts, Recent Press Notes, Energy

Conservation Tips and other activities about TECA regularly. Please visit us www.tecaonline.in

d. Facebook & Twitter:

We are posting on the Facebook important Circulars, latest information about Electricity, our News

Clippings and other information. Members are requested to join in our account for availing information's

instantly. Our Facebook Id: [email protected], Twitter Id: [email protected]

e. Google Groups :

We had an account in Google Groups. In this, we are posting information's about Electricity, Circulars,

TANGEDCO Orders, High Court Orders, and so on. Members may also post their comments and interact

about the information. We request you to join in our Google Group. The Group's Id is

[email protected].

| 16th Annual Report | 8

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

17. Directors' Meetings:

During the year 2013 - 2014, the Board of Directors meeting was held on the following dates at SIEMA

Building, Board Room, 2nd Floor, 8/4, Race Course Road, Coimbatore - 641 018.

Sl. No DATE

1 28th June 2013

2 05th October 2013

3 03rd January 2014

4 28th February 2014

18. Periodical Meetings of Members

We are conducting a meeting of members in each month in which a directors' meeting is not held. The

purpose of the meeting is to exchange views on technical and commercial matters important to

members. These meeting were held at SIEMA Building, Board Room, 2nd Floor, 8/4, Race Course

Road, Coimbatore -641018 on the following date.

Sl. No DATE

1 13th April 2013

2 29th April 2013

3 17th May 2013

4 07th June 2013

5 08th July 2013

6 30th November 2013

7 27th January 2014

8 28th February 2014

Members are invited to participate in such meetings in the future. The date and time of the meeting

can be ascertained from TECA's office.

19. Statutory Declarations

a. Fixed Deposits

The Association has not accepted any fixed deposit from the public during the year ending

31.03.2014.

b. Particulars of Employment

No employee is in receipt of Rs 2.00 lakhs and above per month pursuant to the provisions of section

217 (2A) of the Companies Act, 1956 read along with the Company Rules (1975)

| 16th Annual Report | 9

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

20. Acknowledgements:

The Board of Directors wishes to place on record its sincere thanks and appreciation for the

co-operation and support given by the members and look forward to their continued support.

On behalf of the Board of Directors

Place : Coimbatore

Date : 05.07.2014 President

List of Annexures

Annexure - 1 TECA Endeavours

Annexure - 2 Legal actions taken by TECA

Annexure - 3 Electric Power supply situation in India in the year 2013-14

Annexure - 4 Important Events & Announcements in the Electricity Sector in India during

the year 2013-2014

Annexure - 5 Electric Power supply situation in Tamil Nadu in the year 2013-14

(Sd/-)

D Balasundaram

| 16th Annual Report | 10

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

Board of Directors Report 2013-14

Annexure -1

TECA's Endeavours

1. Meetings held / Attended

1. TECA had organized a meeting on 13.04.2013 to discuss about the “TN Solar Power Purchase

Obligation” with our Committee members, at Board Room, 2nd Floor, COINDIA, Coimbatore -

641018. Our Technical Committee members, Special Invitees from other associations, and Past

officials from TANGEDCO are also participated.

2. TECA had organized a meeting on 17.05.2013 to discuss about the “TANGEDCO Tariff Petition

(2013-2014)” with our Committee members, at Board Room, 2nd Floor, COINDIA, Coimbatore -

641018. Our Technical Committee members, Special Invitees from other associations, and Past

officials from TANGEDCO are also participated.

3. TECA had attended TNERC Public hearing held at Coimbatore on 18.05.2013 and submitted our

suggestions / Comments / Objection on TANGEDCO / TANTRANSCO proposals.

4. TECA had organized a meeting on 07.06.2013 to discuss about the “TANTRANSCO Reworking

Transmission Charges Submission to TNERC” with our Committee members at 2nd Floor,

COINDIA, Coimbatore -641018. Our Technical Committee members, Special Invitees from other

associations, and Past officials from TANGEDCO are also participated.

5. TECA had organized a meeting on 08.07.2013 to discuss about the “TNERC Tariff Order dtd

20.06.2013” with our Committee members at Board Room, 2nd Floor, COINDIA, Coimbatore -

641018. Our Technical Committee members, Special Invitees from other associations, and Past

officials from TANGEDCO are also participated.

6. TECA had organized a Presentation on “Power Purchase Option” by Global Energy Private Ltd

during our 15th AGM on 04.10.2013.

7. After the Presentation, Mr A Velayutham, Former Member- Maharastra Electricity Regulatory

Commission have gave a lecture on “Consumer Advocacy in Regulatory Regime”. More than 100

members from various parts of Tamil Nadu were participated on the meeting.

8. TECA have participated in the interaction meeting with Mr. A. Thangavelu, Chief Engineer,

Coimbatore organized by Southern India Mills Association on 7th October 2013 regarding the

issues for the creation of infrastructure for sub-stations and transmission lines for the better

supply position in Coimbatore District.

9. TECA had organized a meeting with industrial associations on 27th November 2013 at Chamber

Towers. Twenty three Associations participated. As decided in the meeting, TECA sent a joint

Memorandum to the Hon'ble Chief Minister to seek an appointment to explain the prevailing

power position.

10.TECA had organized a meeting on 30.11.2013 to discuss about the “Present Power Position in

Tamil Nadu” at Board Room, 2nd Floor, COINDIA, Coimbatore-641018. Our Technical Committee

members and Special Invitees from other associations, participated.

| 16th Annual Report | 11

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

11.TANGEDCO Chief Engineer, Coimbatore had called TECA, for a meeting on 13th December 2013 to

discuss about the case filed in Competition Commission of India. Our Office bearers were

attended the meeting

12.TECA had participated in SIMA's FARM TO FINISH EXPO 2013 Exhibition at CODISSIA held on 13th

December to 15th December 2013. We have received good response from the visitors and also

had a chance to create awareness about our Association activities with the public.

Energy Department

| 16th Annual Report | 12

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

TECA had sent its support to the proposed TNERC draft amendment

to the Regulation 21 of Tamil Nadu Electricity Supply Code 2004 for

omitting the following expression; "The provision of the Act as in

sub section (I) above are in addition to and not in derogation of any

other law for the time being in force. Accordingly the Licensee shall

be entitled to disconnect the supply of electricity subject to the

provisions of Water (Prevention and Control of pollution) Act, 1974,

Air (Prevention and control of pollution) Act, 1981 and Environment

(Protection) Act, 1986. Etc"

t

| 16th Annual Report | 13

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

UNION

3

1. Lack of connectivity of the Southern Grid

with the rest of the Country.

2. Additional allocation of power from Central

Power Generating Stations

3. The natural gas pipe line from Kochi to

Bengaluru

4. Further reforms in electricity sector

5. A permanent bench of the Appellate

Tribunal for Electricity at Chennai

the proposed

Seeking an appointment for submission of our

views on the electricity supply situation

prevailing in our State & submit the comments

on the proposed Amendments to Electricity

Act, 2003 and the National Tariff Policy

| 16th Annual Report | 14

TECA welcoming the statement made in the

Legislative Assembly on various developments

in electricity sector.

"

"

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

| 16th Annual Report | 15

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

TANGEDCO has sent revised working instruction vide Memo. No. CE/Comml/EE/R&C/AEE1/F.Powercut/D.No.432/13, dtd. 30.09.2013.

Informing members on TECA sent a memorandum requesting Chairman and Managing Director TANGEDCO to instruct concern officials not to impose 15% compensation charges to HT consumers those who avails supply at voltage below 33 kV, for exceeding harmonics level limit prescribed by the CEA Regulation.

| 16th Annual Report | 16

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

Chief Engineer Commercial clarification vide Lr No. CE/ Comml/ EE3/ AEE2/F.Harmonics/ D.661/13, dtd.25.09.2013 that all consumers irrespective of their voltage connectivity are liable to provide harmonic filters.

| 16th Annual Report | 17

Board of Directors Report 2013-14

Annexure -2

Legal Actions taken by TECA

1. On Equitable Distribution of electricity filed before TNERC

TECA had filed a petition No. MP 43 of 2012 on 04.12.2012 before TNERC seeking equitable

distribution of Electricity on the basis of Madras High Court Orders in Writ Petitions No 11292 and

11998 of 2011 and TNERC Order No. M.P. No. 15 of 2011 dated 22.03.2012.

Status :

The petition was admitted by TNERC on 4th December, 2012, several hearings were held.

Last hearing held on 27.02.2014. Our Advocates insisted the need for forming a committee to

examine the existing Load Shedding Protocol adopted. In our state and to implement suitable

Protocol to distribute the available power more equitably. For this purpose the Protocol adopted in

Maharashtra may be studied.

Accordingly the Commission directed TNERC Secretary to constitute a Committee consisting

members of TANGEDCO, SLDC, consumers and one representative from TECA and CODISSIA to

study the details of load shedding prevailing in our state. On behalf of TECA, President

Mr D Balasundaram has been nominated to represent before this Committee. The Other members are

Dr K S Palaniswamy(Consumer Representative, Chennai), Mr K Ilango, (CODISSIA) Chief Engineer-

Commercial, (TANGEDCO), Chief Engineer-Operation(TANTRANSCO)

The First meeting of this Committee was held on 18.03.2014. In this meeting, Committee Members

wanted to get the following details from TANGEDCO.

1. Details of load shedding at the time of critical period, when load shedding was maximum

2. Details of load shedding during the current period with details of planned (projected) relief in

different group timings.

3. Details of emergency load shedding over and above the normal load shedding followed in

emergency situation by TANTRANSCO.

After submission of these details by TANGEDCO/TANTRANSCO the Second meeting of this committee

was held on 20.05.2014.

During this meeting, committee members indicated that, Madras City was omitted from Load

shedding in the details provided by TANGEDCO. Members insisted that there should be equitable

distribution of load shedding throughout the state. Scientific procedures have to be adopted and load

shedding protocol should be in place for different level of shortages in the grid, which are equitable.

TANGEDCO agreed to come forward with some proposal with a load shedding protocol by 10th June

2014.

We have not received any proposal from TANGEDCO so far.

2. Equitable Distribution of electricity filed before (CCI)

The Southern India Engineering Manufactures' Association (SIEMA) has filed a petition No. 38 of 2013

before the Competition Commission of India (CCI) seeking equitable distribution of Electricity

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

| 16th Annual Report | 18

throughout Tamil Nadu. The first hearing took place on 26-6-2013. Considering the magnitude of the

matter, the full commission sat for hearing for a very detailed hearing, which lasted for over 2 hours.

Status:

The Commission, passed an order dated 08.10.2013 directs The Director General(Investigation) of

Competition Commission, to investigate the matter for violation of any/all provisions of the

Competition Act, In case the Director General finds any company in violation of the provision of the

Act, it shall also investigate the role of the persons who at the time of such contravention were in

charge of and responsible for the conduct of the business of the company involved so as to fix

responsibility of such persons under section 48 of the Act. DG shall give opportunity of hearing to such

persons in terms of section 48 of the Act. The report of DG be submitted within 60 days from receipt of

the order.

On the basis of this order, the Office of the Director General (Investigation), has sent a notice to The

Chairman cum Managing Director, TANGEDCO to provide the certain information along with

supporting documents.

However TANGEDCO has filed a writ petition No. 35047 of 2013 and M.P. No. 1 of 2013 in Madras High

Court seeking to quash the order of the Competition Commission of India and the Notice of its Director

General (Investigation). Informant SIEMA has appointed a legal counsel to argue this petition at High

Court.

3. Electricity Tax on Demand Charges

The Supreme court in its judgement dated 15.05.2007 in SPIC Vs Electricity Inspector, Govt. of Tamil

Nadu in Civil Appeal No.2551 of 2007 has held that levy of electricity tax on Demand Charges was

invalid. Subsequently, Tamil Nadu Assembly has amended the original Act by Tamil Nadu Tax on

Consumption or Sale of Electricity (Amendment) Act of 2007 (Act 38 of 2007) in an attempt to nullify

the effect of this Supreme Court Order. TECA contested this amendment in Madras High Court.

Finally, this matter was decided against TECA by the Madras High Court Bench in its judgement dated

15.06.2012 in Writ Appeals No 11016 and 11017 which upheld the validity of the levy.

TECA has filed the Special Leave Petition (SLP) Nos. 35425-35426 of 2012 in Supreme Court against

the High Court Order.

Status:

The SLP of TECA was dismissed on the ground that an association could not file an SLP. However SLPs

of SIMA and TECA members (viz., SLP (Civil) Nos 3653/2013, 11249/2013, 21500/2013 etc) was

admitted and the Court granted them interim stay for the collection of electricity tax. The Court

served notice to the Government for its reply and the proceedings are pending.

4. Levy of Cross Subsidy surcharge

The Government of Tamil Nadu vide G.O.(Ms) No.10, Energy(C3) Department dated 27.02.2009

had waived the collection of Cross Subsidy Surcharge during the period of Restriction and Control

measures. The Government withdrew this waiver vide its order No. Tamil Nadu G.O. (Ms) No 79 of

Energy (C3) Department dated 11.07.2012. TANGEDCO has started collecting Cross Subsidy

Surcharges from 12.07.2012 on the basis of this order. This Government Order was challenged by

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

| 16th Annual Report | 19

TECA and its members before the Madras High Court in Writ Petition W P 20841 of 2012. The Madras

High Court Single Judge has struck down the Government Order. The Government of Tamil Nadu and

TANGEDCO have filed writ appeals before the Madras High Court Bench.

Status:

The Appeal was listed before Court in December, 2013 and was directed to be next listed in the third

week of January, 2014. The same has not been listed till date..

5. Levy of excess demand and energy charges for violation of Peak Hour restrictions

TNEB levied charges for the excess demand and energy consumed by the consumers during Peak

Hours from 1.11.2008 based on the TNERC order in M P No. 42 of 2008 dated 28.11.2008, after a

delay of 10 months. This was challenged by TECA at TNERC vide M P No.4 of 2010.

TNERC passed an order in MP No. 4 of 2010 dated 04.05.2010 dismissing TECA's petition holding that

Tamil Nadu Electricity Board is entitled to impose the Excess Demand Charges and Excess Energy

Charges during evening peak hours as they were in consonance with its order dated 28.11.2008.

Against this Order, TECA and other associations have filed appeals before Appellate Tribunal for

Electricity (APTEL).

APTEL passed an order dated 11.01.2011 held as follows:

“There is no clarity in TNERC order dated 28.11.2008 about excess demand charges and excess

energy charges for violation of restrictions during evening peak hours. Only by its order dated

4.05.2010, the Commission made it clear that excess demand and energy charges were applicable

from for such violations. Therefore TNERC could authorise TANGEDCO to collect excess charges for

violation only from the date of that order that is 04.10.2010”.

Status:

This order was challenged by TANGEDCO in Supreme Court vide Civil Appeal No.1090-1099 of 2011

and 2859 of 2011. The hearings are yet to be held. TECA and its members are respondents in the

appeal.

6. Solar Power Obligation

The Government of Tamil Nadu vide G.O.(Ms) No.121/Energy (C) 2 dated 19.10.2012 launched

“Tamil Nadu Solar Energy Policy 2012” which envisages generation of 3000 MW of Solar Energy by

2015. TNERC vide order No.1 of 2013 dated 07.03.2013 has empowered the state electricity

distribution company, TANGEDCO, to administer the 'Solar Power Obligation' mandated by the State

Government's solar policy. This Order fixes an Obligation of consumption of Solar Power on HT and LT

Commercial Consumers @ 3% for 2013 and 6% for 2014.

TECA has filed Appeal No.92 of 2013 before Appellate Tribunal for Electricity (APTEL). Our appeal

admitted by the APTEL, Chennai Circuit Bench on 24-05-2013.

Status:

Appellate Tribunal for Electricity (APTEL) vide order dated 21.01.2014 has set aside the order No. 1 of

2013 passed by Tamil Nadu Electricity Regulatory Commission. The gist of the Order is as follows;

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

| 16th Annual Report | 20

I) The State Commission in discharge of its functions under the Electricity Act, 2003 has to be guided

by the directions of the State Government u/s 108 of the 2003 Act but the same are not mandatory

and binding. The State Commission being an independent statutory authority is not bound by any

policy directions which hampers its statutory functions.

ii) The State Commission has to be guided by the directions of the State Government u/s 108 of the

Act only in discharge of the functions assigned to it under the 2003 Act. Such directions have to be

implemented only under the functions and powers assigned to the State Commission under the

2003 Act. The Act only provides for specifying the purchase obligation from the renewable energy

sources under Section 86(1)(e). Thus, the directions of the State Government for SPO can only be

considered by the State Commission in exercise of its powers under Section 86(1)(e) of the Act.

iii) The contention of the State Commission that SPO and RPO are two different obligations and the

RPO has been fixed under RPO Regulations 2010 under Section 86(1)(e) and SPO as per

implementation of Policy directions of the State Government under Section 108 is not legally valid.

The State Commission has to consider the directions of the State Government under section 108

in the matter of discharge of its functions under the Act and not in a general way outside the

functional scope of the Act. The State Commission had no power to issue an SPO order as per the

directions of the State Government u/s 108 in addition and contrary to RPO obligations specified in

the RPO Regulations 2010.

iv) The State Commission can specify the RPO/SPO on the total consumption of the distribution

licensee and not selectively and directly on some categories of consumers of the distribution

licensee. The SPO obligation as provided in the impugned order is contrary to the State

Commission's Renewable Energy Regulations 2010 and is beyond the powers of the State

Commissions. The impugned order is also discriminatory to some categories of consumers of the

distribution licensee.

v) The State Commission has simply tried to implement the directions of the State Government by

passing the impugned order without considering its own functions and powers under the 2003 Act

and its own Renewable Energy Regulations notified under the Act and even without considering

the other important issues raised by the objectors.

In view of above, the Appeals are allowed and the impugned order is set aside.

7. TNERC Tariff Order No. TP 1 of 2013 dated 20.06.2013

Tamil Nadu Electricity Regulatory Commission has issued orders on the Tariff Petitions submitted by

TANGEDCO for fixation of retail tariff and transmission charges. The orders take effect from

21.06.2013. TECA have found that TNERC, & TANGEDCO has violated certain regulations stipulated in

National Electricity Policy and Tariff Policy and recent APTEL's directions.

TECA had challenged this TNERC order before Appellate Tribunal for Electricity (APTEL) vide appeal

No. 199 of 2013.

This appeal came before APTEL Chennai Bench on 26th August 2013 for admission. Last hearing was

held on 15.04.2014.

Status:

Arguments over and the Judgement is reserved.

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

| 16th Annual Report | 21

Board of Directors Report 2013-14

Annexure -3

Electric Power supply situation in India in the year 2013-14

1. Introduction

India has the world's fifth-largest electricity generation capacity which currently stands at 243 GW.

For households, not only do 300 million Indians live without electricity but those who do have power

receive an inadequate and unreliable supply, especially in rural areas. India's per capita annual

consumption, 780 kwh, is among the world's lowest, and far below that in other emerging economies.

In the next two decades India will face immense challenges if it is to sustain the 8–10 percent

economic growth required to end poverty and achieve human development goals. According to the

Planning Commission, by 2032 India will have to almost triple its 2010 supply. a compound annual

growth rate of 4.7 percent. India will also need to raise installed electricity capacity by at least five or

six times 2003–04 levels to meet demand in 2031–32 (Planning Commission 2006). Powering India

will thus require the emergence of a commercially viable sector.

India's power generation capacity is higher with coal at 58.3 per cent, followed by hydro 17.7 per

cent, renewable energy 12.3 per cent, gas 9 per cent, nuclear 2.1 per cent and oil 0.5 per cent,

Achieving energy security in the strategic sense is of fundamental importance not only to India's

economic growth but also for the human development objectives that aim at alleviation of poverty,

unemployment and meeting the Millennium Development Goals.

The importance of reliable electricity for economic development is most apparent when it is

absent—and so becomes a constraint. Inadequate and unreliable power supply can result in lost

revenues for enterprises and reduce the welfare of household consumers. That power quality affects

economic development is supported by recent literature.

Industrialization, urbanization, population growth, economic growth, improvement in per capita

consumption of electricity, depletion of coal reserve, increasing import of coal, crude oil and other

energy sources and the rising concern over climate change have put India in a critical position. The

demand for power has been growing at a rapid rate and overtaken the supply, leading to power

shortages in spite of manifold growth in power generation over the years.

The demand for power has been outstripping the growth of availability. Substantial peak and total

energy shortages prevail in the country.

2. Issues and remedies to strengthen the power sector in India

According to research data available from various sources, the problems in the power sector or power

shortages apart from the obvious shortage in supply result from issues like:

1. High Aggregate Technical and Commercial losses (AT&C losses)

2. Poor financial health of DISCOMs

3. Shortage of fuel

4. Low plant load factor

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

| 16th Annual Report | 22

Transmission bottlenecks are an important reason for these shortages. Since demand and generation

capacity are both expected to increase in the future, transmission constraints need to be addressed

urgently, said the report released today.

The transmission sector is already lacking in investments made so far. Although 50 per cent of the

amount invested in power generation should be invested in transmission, in India this figure stands at

a mere 30 per cent.

The recent world Bank's report states has identified electricity distribution to the end consumer as the

weak link in the sector. The report recommends freeing utilities and regulators from external

interference, increasing accountability and enhancing competition in the sector to move it to a higher

level of service delivery.

AT&C losses in India stood at 26 per cent, which was much higher than the global average of 9 per cent

in 2010.

"Another important issue in the transmission sector has been the inability to evacuate excess power

from surplus regions and channel it to regions that face shortages

In India the regulatory environment has not sufficiently pushed utilities to improve performance. A

lack of accountability, limited autonomy, and constrained technical capacity have restricted the ability

of SERCs to create an independent, transparent, and unbiased governance framework for the sector

that balances consumer and investor or utility interests. SERCs have been established in all states but

have generally struggled to achieve true autonomy from state governments, partly because of

relationships built into the Electricity Act.

The Electricity Act 2003 sought to limit government interference in utility operations, yet state

governments are still a major presence with a generally detrimental impact on utility operations. They

have exacerbated discoms' financial difficulties by compelling them to borrow to cover operational

expenses (given the revenue shortfalls due to under-recovery of power purchase costs and

incomplete or late subsidy payments by state governments), by applying political pressure to keep

tariffs low, and by pressuring discoms to purchase power during elections to keep voters happy.

Irregular and inadequate tariff increases over the past decade, despite state regulators' ability to act

on their own initiative, have lowered cost recovery and increased regulatory assets.

Banks and financial institutions continued financing insolvent discoms 2011, ignoring due diligence

and prudential norms as lending to unbundled discoms grew 35 percent a year over the previous five

years. This flow of liquidity limited the pressure on discoms to improve performance and on state

governments to allow tariff increases.

Poor power sector performance has its roots in distribution inefficiencies and limited accountability, so

fixing them will help improve service delivery and other metrics of sector performance, put the sector

on a financially sustainable path, and ensure that power is no longer a bottleneck for growth.

Power distribution in India needs sweeping reforms if it is to bring back the country to a high growth

trajectory and meet its goal of expanding access to electricity to all by 2019.

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

| 16th Annual Report | 23

3. Priorities action to be taken in power sector are as follows:

1. Implement fully the key Electricity Act 2003 mandates, especially those on competition and

distribution (tariffs, open access, and standards of performance)

2. Ensure regulatory autonomy, effectiveness, and accountability

3. Ensuring that high-quality, updated data are publicly available and that these data are used for

monitoring and benchmarking performance and for planning and decision making is key to

incentivizing improved utility performance

4. Insulate utilities from state government to prevent interference with internal operation

5. Use central programs and other support to incentivize operational and financial efficiency.

6. Make better use of India's size and diversity to experiment with and learn from different

models of service provision, including private sector participation through joint ventures,

franchising, management contracts, and so on.

7. Promote electrification in a financially responsible manner and support diverse delivery

models

8. Rationalize domestic tariff structures to improve targeting and reduce the fiscal burden.

4. Current Power Status :

India's energy basket has a mix of all the resources available including renewable.

According to the Ministry of Power Executive summary of Power Sector April 2014 India has an total

installed capacity of 245393.54 MW.

5. All India Installed Capacity (MW) as on 30.04.2014 (Region Wise) as follows;

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

6. All India Installed Capacity (MW) as on 30.04.2014 (Sector Wise) as follows

| 16th Annual Report | 24

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

7. India's Growth of Installed Capacity Since 6th Plan (In MW)

According to the latest annual 'Load Generation Balance Report'(LGBR) by the Central Electricity Authority, our

country is facing the power deficit of 4.5 percent in terms of Peak Demand and 4.2 percent in terms of energy for

the financial year 2013-14.

8. Actual power supply position of India in various Regions during the year 2013-14

(Source: CEA LGBR: 2014-2015)

9. Actual power supply position of Southern States in Southern Regions during the year 2013-14

(Source: CEA LGBR 2014-15)

Andhra Pradesh 95662 89036 -6626 -6.9 14072 13162 -910 -6.5

Karnataka 64150 58052 -6098 -9.5 9940 9223 -717 -7.2

This trend will continue in the upcoming year also.

| 16th Annual Report | 25

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

10. Anticipated Power Supply Position in the Country during 2014-15

According to CEA, the country is expected to see a power shortage of 5.1 per cent this fiscal year

(2014-15) even as the deficit is projected to be very high in the southern region.

The report said the "country is expected to experience a peak shortage of 2 per cent and energy

shortage of 5.1 per cent, despite very high shortages likely to be experienced by Southern Region".

Going by the projections, the shortfall in the southern region would be 12.7 per cent; north eastern -

17.4 per cent; eastern - 3.4 per cent, and northern - 3.1 per cent.

The report states that Uttar Pradesh, with a shortage of 15,042MU, and undivided Andhra Pradesh

(15,000MU) are the worst affected states. Together, they account for 56% of the overall deficit of

53,515MU across India. Owing to the bifurcation of the state, the residual AP may have to bear the

brunt.

(Source: CEA LGBR: 2014-2015)

For India a 2012 survey by the Federation of Indian Chambers of Commerce and Industry found that

India loses USD 68 billion, or about Rs 4,14,800 crore of its Gross Domestic Product due to the lack of

affordable and quality power. A 2006 World Bank investment climate assessment indicated an almost

7 percent loss in production or merchandise value due to power outages or surges from the public

grid.

There is strong correlation between power consumption and the GDP of the country. Power shortages

currently cost India a GDP loss of USD 68 billion (0.4 per cent of total GDP),"

Energy exploration and exploitation, capacity additions, clean energy alternatives, conservation, and

energy sector reforms will, therefore, be critical for energy security

Energy conservation has also emerged as one of the major issues in recent years. Conservation and

efficient utilization of energy resources play a vital role in narrowing the gap between demand and

supply of energy. Improving energy efficiency is one of the most desirable options for Bridging the gap

in the short term.

| 16th Annual Report | 26

Board of Directors Report 2013-14

Annexure - 4

a) The Important Events and announcements in the Electricity Sector in India during

the year 2013-14.

S No Date Events / Announcements

1 24.05.2013 Was a historic day in for power generation in India with the highest ever

generation of 128 GW in a day

2 27.06.2013 The Government has approved the setting up a Regulatory Authority for

Coal Sector.

3 22.08.2013 Asia's largest single location solar plant (55Mw) commissioned in

Rajasthan by Welspun Energy. This project was a part of the first phase of

the National Solar Mission and is Asia's largest single location solar power

plant

4 23.10.2013 Shri Gireesh B Pradhan,has appointed as Chair Person, Central

Electricity Regulatory Commission (CERC)

5 13.12.2013 The Coal Regulatory Authority Bill was introduced in the Lok Sabha for its

consideration.

6 24.02.2013 CERC notifies power tariff regulations for 5 years

b) The Important Events and announcements in the Electricity Sector in India from

01.04.2014 to 30.06.2014

S No Date Events / Announcements

1 27.05.2014 Shri Piyush Goyal take over as the Minister of State (Independent Charge)

of Ministry of New & Renewable Energy

2 26.06.2014 Ministry of Power has approved 9 new projects with an aggregate

cost of over Rs.12,500 crore to fast track building of high capacity

inter-state transmission lines, These transmission projects will

benefit several states such as Haryana, Chhattisgarh, UP, MP,

Maharashtra etc, by enabling high capacity 765kv lines carrying

up to 2100MW each apart from construction of new 765/400kv

substations. The projects will help evacuate power from central

generating stations such as 660MW Sipat of NTPC, 1600MW

Gadarwara, private sector generating stations such as Sassan

UMPP (1320 MW). Congestion will also be reduced in Haryana

Region by the strengthening of the Northern Transmission system.

Projects which will be developed through tariff based competitive

bidding process inviting participation from all Bidders including

private sector.

3 01.07.2014 The National Democratic Alliance government has appointed the former

Cabinet Minister, Suresh Prabhu, as the head of a high level panel on power

revamp — “Advisory Group for Integrated Development of Power, Coal and

Renewable Energy. Mr. Prabhu will be assisted by three former bureaucrats

Pratyush Sinha, Anil Baijal and Partha Bhattacharya

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

| 16th Annual Report | 27

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

Board of Directors Report 2013-14

Annexure -5

Electric Power supply situation in Tamil Nadu in the year 2013-14

1. Introduction:

Tamil Nadu is the eleventh largest state in India by area and the sixth most populous state in India.

Tamil Nadu is the second largest contributor to India's GDP. Tamil Nadu possesses the second-largest

economy (2011–12) among states in India after Maharashtra. It is the second most industrialised

state next to Maharastra. Tamil Nadu's gross state domestic product for the year 2011–2012 was 4.28

trillion (short scale) or $145,868 Million. Tamil Nadu had a per capita GDP of $1,622, the sixth highest

in India. The state was ranked sixth among states in India according to the Human Development

Index in 2011. The state has the highest number (10.56 per cent) of business enterprises and stands

second in total employment (9.97 per cent) in India compared to the population share of about 6 per

cent. In the 2013 Raghuram Rajan panel report, Tamil Nadu was ranked as the third most developed

state in India based on a Multidimensional Development Index.

The state has shown a growth of 9.4 per cent in the year 2011–2012. It ranks third in foreign direct

investment (FDI) approvals (cumulative 1991–2002) of 225,826 million ($5,000 million), next only

to Maharashtra and Delhi constituting 9.12 per cent of the total FDI in the country.

Tamil Nadu has the third largest established power generation capacity in the country. The total

installed capacity of electricity in the State by January 2014 was 20,716 MW. Tamil Nadu ranks first

nationwide in diesel-based thermal electricity generation with a national market share of over 34 per

cent. From a power surplus state in 2005–06, Tamil Nadu has become a state facing severe power

shortage over the recent years due to lack of new power generation projects and delay in the

commercial power generation at Kudankulam Atomic Power Project.

2. Installed capacity in Tamil nadu as on 30th June 2014

STATE SECTOR

Thermal power (Coal) (In MW)

Ennore thermal power station 450

Mettur thermal power station 1440

North chennai thermal power station 1830

Tuticorin thermal power station 1050

Total 4770

Thermal (Gas)

Basin bridge 120

Kovikalpal 107

Kuttalam 100

Valluthur 186

Total 513

Hydro

Aliyar 60

Bhawani barrage iii 15

| 16th Annual Report | 28

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

Bhawani barrage ii 30

Bhawani kattal 30

Kadamparai 400

Kodayar 100

Kundah 555

Lower mettur 120

Mettur dam 50

Mettur tunnel 200

Moyar 36

Papanasam 32

Parson's valley 30

Periyar 140

Pykara 59

Pykara ultmate 150

Sarkarpathy 30

Sholayar 95

Suruliyar 35

Total 2167

PRIVATE SECTOR

Thermal (Coal)

Neyveli (Z) 250

Tuticorin (P) 300

Total 550

Thermal (Gas)

Karuppur 120

P. nallur 331

Valantarvy 53

Total 503

Thermal (D.G)

B. Bridge 200

Samalpatti 106

Samayanallur 106

Total 412

CENTRAL SECTOR

Thermal (Coal) (In MW)

Neyveli (Ext) 420

Neyveli (Tps-1) 600

Neyveli (Tps-II) 1470

Neyveli (Tps-II exp) 250

Vallur 1500

Total 4240

Nuclear

Madras Atomic Power Station 440

Koodankulam* 1000

Total 440

Grand total 13595

Source: CEA *Commercial Generation yet to start

| 16th Annual Report | 29

Ennore thermal power station 660 Nov-17

Ennore special economic zone 2 x 660 Dec-17

Udangudi thermal power project 2 x 660 Dec-17

North Chennai thermal power project (stage -3) 800 Dec-18

Uppur thermal power project 2 X 800 Dec-18

Ennore thermal power station (replacement) 1 x 660 Dec-18

TNEB- NTPC JV 500 MW (Unit 3) at Vallur in Thiruvallur Dist 500 Aug-14

TNEB – NLC JV 1000 MW at Tuticorin 500 x 2 Nov-14

Udangudi expansion project 2 x 660 Report prepared

Tuticorin thermal power project stage 1v 2 x 660 Report prepared

Cheyyur ultra mega power project 4000 2020-2021

Kundah pumped storage hep 4 x 125 2019-2020

Sillahalla pumped storage hydro electric project 2000 2023-2024

(4 x 500 MW)

(Source : TANGEDCO Letter No. CE/Pr/SE/THP/E1/A1/F. Misc/D86/14 DT. 03.07.2014)

Tamil Nadu is likely to face a shortage of 6,690 million units (MU) of power in 2014-15, about 21% more than last

year, a report of the Central Electricity Authority has said.

Despite commissioning state-owned thermal plants and adding about 2,500 MW to its kitty,

Tamil Nadu will face a higher shortage owing to increase in demand, the annual report on demand and supply of

power in various states has said. The peak hour demand in the state is estimated to be 13,773 MW and the

availability will be only 12,128 MW, it said.

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

Name of the projectCapacity

(mw)

Schedule of

commissioning

3. Upcoming Power Projects In Tamil Nadu

| 16th Annual Report | 30

5. The Developments in R & C measures from the impositions of power cut from

Tamil Nadu 2008 :

Date Details of Power cut

November 1, 2008 40% power cut both on demand and energy

May 26, 2009 30% power cut both on demand and energy

June 13, 2009 20% power cut both on demand and energy

March 28, 2010 30% power cut both on demand and energy

May 28, 2010 20% power cut on both demand and energy

April 3, 2011 30% power cut on both demand and energy

May 10, 2011 20% power cut on both demand and energy

February 27, 2012 40% power cut on both demand and energy

August 14,2013 Power cut relaxed totally

October 1, 2013 20% power cut on both demand and energy

June 1st 2014 Power cut relaxed totally

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

6. TNEB is hoping to bridge the gap by tapping its long-term power purchase agreements to source

3330 MW, out of which about 2,100MW will come from northern states and the remaining from within

the state. The agreements signed with private power producers come into effect by August.

But a major handicap has been that there are few routes to bring power from the northern part of the

country to the south.

Of the two parallel lines being laid between Raichur and Sholapur, one line was connected to the rest-

of-the-nation grid on December 31, 2013. But the other line is being laid by a private company and

only when this line is operational, power can be evacuated from northern states.

The private line is likely to be operational by August 2014 as testing and other necessary formalities

are being undertaken to operationalise both the lines. Once these two lines are made operational,

Tamil Nadu and other southern states can evacuate power from the rest of the country.

An important point in the total deficit in the Southern Region of the country which is estimated at

9254MW during peak hours, The capacity of the existing lines, along with the additions in this year

would not be sufficient to manage this deficit

TANGEDCO also hopeful of getting more than half of the power generated by Kudankulam Unit 1 and

Some of the joint ventures like the Neyveli Lignite Corporation in Tuticorin will expect to commission

will help them to overcome the shortage.

| 16th Annual Report | 31

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

AUDITOR’S REPORT

To the Members of,

M/s TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

I have audited the accompanying financial statements of M/s TAMIL NADU ELECTRICITY

CONSUMERS' ASSOCIATION, which comprise the Balance Sheet as at March 31, 2014, and the

Statement of Profit and Loss for the year then ended, and other explanatory information.

Governing Body is responsible for the preparation of these financial statements that give a true and

fair view of the financial position, financial performance of the association in accordance with the

applicable Accounting Standards. This responsibility includes the design, implementation and

maintenance of internal control relevant to the preparation and presentation of the financial

statements that give a true and fair view and are free from material misstatement, whether due to

fraud or error.

My responsibility is to express an opinion on these financial statements based on my audit. I

conducted my audit in accordance with the Standards on Auditing issued by the Institute of

Chartered Accountants of India. Those Standards require that I comply with ethical requirements

and plan and perform the audit to obtain reasonable assurance about whether the financial

statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial statements. The procedures selected depend on the auditor's

judgment, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk assessments, the auditor considers

internal control relevant to the association's preparation and fair presentation of the financial

statements in order to design audit procedures that are appropriate in the circumstances. An audit

also includes evaluating the appropriateness of accounting policies used and the reasonableness

of the accounting estimates made by governing body, as well as evaluating the overall presentation

of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for

my audit opinion.

The Association is a Company licensed to operate under section 8 of the Companies Act, 2013

(erstwhile Section 25 of the Companies Act 1956) and as such the provision of CARO 2003 are not

applicable.

| 16th Annual Report | 32

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

In my opinion and to the best of my information and according to the explanations given to me, the

financial statements give the information required by the Act in the manner so required and give a

true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Association as at March 31,

2014; and

b) in the case of the Income and Expenditure Account, The Excess of Income over

Expenditure for the year ended on that date;

Further I report that :

a) I have obtained all the information and explanations which to the best of my knowledge

and belief were necessary for the purpose of my audit;

b) in my opinion proper books of account as required by law have been kept by the

Association so far as appears from my examination of those books the Balance Sheet,

Statement of Income & Expenditure dealt with by this Report are in agreement with the

books of account.

c) In my opinion, the Balance Sheet, Statement of Income & Expenditure complies with the

applicable Accounting Standards.

Place : Coimbatore

Date : 05.07.2014

| 16th Annual Report | 33

P. Mahendran Bsc., F.C.A.,Chartered Accountant

Membership No. 29194

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

CIN U37102TZ1998GAP008524

Balance Sheet as on 31.03.2014

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

| 16th Annual Report |3 4

Source of Funds Note 31.03.2014 31.03.2013

Place : Coimbatore

Date : 05-07-2014

Sd/-D. Balasundaram

President

Sd/-N. VisvanathanVice President

Sd/-C. K. Narayanaswamy

Treasurer

Sd/-P. Mahendran Bsc.F.C.A.,

Chartered AccountantM.No. 029194

The Accompanying Notes Are Integral Part ofFinancial Statements

As Per My Report Even Dated

For Tamil Nadu Electricity Consumer's Association

Capital Fund And Liabilities

Capital Fund 1 5,093,233.33 4,401,866.32

Current Liabilities

Short Term Provisions 2 12,978.25 21,191.00

Liabilities For Expenses Payable 3 90,000.00 48,720.00

Other Current Liabilities 4 1,327,615.00 900,115.00

Total 6,523,826.58 5,371,892.32

Assets

Non Current Assets

Fixed Assets

Tangible Assets 5 74,073.00 91,198.00

Other Non Current Assets

Investments 5,298,010.02 4,660,837.46

Current Assets

Receivables 6 12,186.00 16,500.00

Cash And Cash Equivalents 7 1,139,557.57 603,356.86

Total 6,523,826.59 5,371,892.32

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

Particulars 31.03.2014 31.03.2013

I Contribution from members 8 2,854,742.00 2,480,854.00

II Other Income 9 74,234.36 197,756.49

III Total Revenue (I + II) 2,928,976.36 2,678,610.49

IV Expenses

Employees benefit expenses 10 494,022.00 452,682.00

Power Charges 9,145.00 7,652.00

Other Expenses 11 1,711,508.91 1,740,439.14

Depreciation 17,125.00 22,037.00

Total Expense 2,231,800.91 2,222,810.14

V Excess of Income before exceptional and extraordinary

items and tax (III-IV) 697,175.45 455,800.35

VI Exceptional Items (5,808.44)

VII Excess of Income before extraordinary items

and tax (V-VI) 691,367.01 455,800.35

VIII Extraordinary items

IX Excess of Income before tax (VII-VIII) 691,367.01 455,800.35

X Tax Expense

Current Tax

Deferred Tax

XI Excess of Income for the period from continuing

operations (IX - X) 691,367.01 455,800.35

Income & Expenditure Account for the Year Ended 31.03.2014

CIN U37102TZ1998GAP008524

Note

The Accompanying Notes Are Integral Part ofFinancial Statements

As Per My Report Even Dated

For Tamil Nadu Electricity Consumer's Association

Place : Coimbatore

Date : 05-07-2014

| 16th Annual Report | 35

Sd/-D. Balasundaram

President

Sd/-N. VisvanathanVice President

Sd/-C. K. Narayanaswamy

Treasurer

Sd/-P. Mahendran Bsc.F.C.A.,

Chartered AccountantM.No. 029194

NOTE : 1

Capital Fund

Opening Balance 4,401,866.32 3,715,375.69

Excess of Income Over Expenditure 691,367.01 686,490.63

5,093,233.33 4,401,866.32

NOTE : 2

SHORT TERM PROVISIONS

Provision For Expenses 12,978.25 21,191.00

12,978.25 21,191.00NOTE : 3

LIABILITIES FOR EXPENSES PAYABLE

Liabilities for Expenses 90,000.00 48,720.00

90,000.00 48,720.00

NOTE : 4

OTHER CURRENT LIABILITIES

Fund for Legal expenses 1,327,615.00 900,115.00

1,327,615.00 900,115.00

NOTE : 5

TANGIBLE ASSETS

GROSS BLOCK 91,198.00 113,235.00

Less : Depreciation 17,125.00 22,037.00

74,073.00 91,198.00

NOTE : 6

RECEIVABLES

(i) More than 6 Months 10,500.00 16,500.00

(ii) Other Than above 1,686.00 -

12,186.00 16,500.00

NOTE : 7

CASH AND CASH EQUIVALENTS

(i) Cash In Hand 564.00 7,247.00

(ii) Indian Bank 999,749.96 379783.91

(iii) Kotak Mahindra Bank 139,243.61 216325.95

1,139,557.57 603,356.86

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

Particulars 31.03.2014 31.03.2013

NOTES ANNEXED TO THE ACCOUNTS

| 16th Annual Report | 36

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

NOTES ANNEXED TO THE ACCOUNTS

Particulars

NOTES - 8

CONTRIBUTION FROM MEMBERS

Subscription 2,749,742.00 1,850,744.00

Entrance Fee 37,500.00 167,500.00

News Letter Income 67,500.00 177,960.00

Meeting, Seminar - 284,650.00

TOTAL 2,854,742.00 2,480,854.00

NOTES - 9

OTHER INCOME

Profit on Sale of Mutual Fund 14,403.72 188,911.50

Miscellaneous Income 8,392.13 8,536.99

Interest Received - Fixed Deposit 11,708.00 308.00

Dividend Received From Mutual Fund 39,730.51 -

TOTAL 74,234.36 197,756.49

NOTES - 10

EMPLOYEES BENEFIT EXPENSES

Salary 494,022.00 452,682.00

TOTAL 494,022.00 452,682.00

NOTES - 11

OTHER EXPENSES

Bank Charges 1,634.08 1,995.44

Accountancy Charges - 18,000.00

Books & Periodicals 53,635.00 6,021.00

Legal Expenses 1,147,962.00 844,095.58

Filing Fees - ROC 25,400.00 7,850.00

Meeting & Seminar 75,162.00 357,649.40

Newsletter Expenses 47,888.00 80,884.00

Miscellaneous Expenses 104.00 9,343.00

Postage & Telegrams 64,484.25 119,060.73

Telephone 26,112.58 28,226.80

Printing & Stationery 62,581.00 80,189.00

Rent 90,000.00 77,625.83

Repairs & Maintenance 15,697.00 36,869.00

Staff Welfare Expenses 9,520.00 16,147.00

Website Charges 13,345.00 6,898.00

Membership Fee 32,754.00 6,435.00

Audit Fees 4,494.00 4,494.00

Office Maintenance 16,608.00 8,099.00

Efiling -TDS 1,985.00 8,324.00

Travelling Expenses 22,143.00 22,232.36

TOTAL OF OTHER EXPENSES 1,711,508.91 1,740,439.14

Rs. Rs.

31.03.2014 31.03.2013

| 16th Annual Report | 37

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

NOTES ANNEXED TO THE ACCOUNTS

Particulars

Provisions for Expenses

Audit Fees Payable 4,494.00 4,494.00

TDS On Professional 10,000.00 15,791.00

TDS On Contract 616.00 906.00

Service Tax Payable (2,507.37) -

Education Cess Payable 154.29 -

Higher Education Payable 221.33 -

12,978.25 21,191.00

Receivables

Auro Mira Energy Co P Ltd 3,000.00 3,000.00

Everest Industries Ltd 2,500.00 2,500.00

Lakshmi Electrical Control Systems Limited - 6,000.00

The Madras Aluminium Company Ltd 5,000.00 5,000.00

Athiparasakthi Alloys & Steels 1,686.00 -

12,186.00 16,500.00

Liabilities for Expenses

N L Rajah (Advocate) 90,000.00 -

Aspiration - 28,611.00

Enfros - 7,500.00

Liberty Designer - 3,300.00

SIEMA - 9,309.00

TOTAL 90,000.00 48,720.00

31.03.2014 31.03.2013

| 16th Annual Report | 38

TAM

IL NA

DU

ELECTR

ICITY

CO

NSU

MER

S' ASSO

CIA

TION

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

1st FLOOR, SIEMA BUILDING, 8/4, RACE COURSE, COIMBATORE- 641 018

Fixed Assets Statement as on 31.03.2014 ( As Per Companies Act, 1956)

S.No ASSETSWDV AS ON

31.03.2013TOTAL

DEPRECIATION WDV AS ON

1 Air Conditioner 9,373 - - 9,373 18.10 1,697.00 7,676

2 Computer 12,902 - - 12,902 40.00 5,161.00 7,741

3 Furniture & Fixtures 37,887 - - 37,887 18.10 5,073.00 32,814

4 Printer - Deskjet 1,874 - - 1,874 18.10 339.00 1,535

5 Printer - Canon LBP 2900 4,674 - - 4,674 18.10 423.00 4,251

6 UPS 24,488 - - 24,488 18.10 4,432.00 20,056

TOTAL 91,198 - - 91,198 17,125.00 74,073

ADDITIONS

BEF.SEP AFT.SEP AMOUNT 31.03.2014%

| 16

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9

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

IMPORTANT ADDRESS

Tamil Nadu Generation & Distribution

Corporation Limited

N.P.K.R.R. Maaligai

144, Anna Salai

Chennai - 600 002

Phone : 044 - 28521300, 28512021

E-mail : [email protected]

Web : www.tangedco.gov.in

Tamilnadu Electricity Regulatory

Commission (TNERC)

19A, Rukmini Lakshmipathy Salai

Egmore, Chennai - 600 008

Phone : 044 - 28411376 - 378 - 379

Fax : 044 - 28411377

E-mail : [email protected]

Web : tnerc.tn.nic.in

Tamilnadu Energy Developement

Agency (TEDA)

5th Floor, EVK Sambath Maaligai

68, College Road

Chennai - 600 006

Phone : 044 - 28224830, 28236592

28222973

Fax : 044 - 28222971

E-mail : [email protected]

[email protected]

Web : www.teda.gov.in

Ministry of Power

Government of India

Shram Shakti Bhavan

New Delhi - 110 001

Phone : 011 - 23710411, 23717474

Fax : 011 - 23710065

Web : www.powermin.nic.in

Minister for Electricity

Thiru. Natham R. Viswanathan

Phone : (O) 044 - 25670204

(Extn. 5609)

(R) 044 - 24617641

Energy Department

Thiru. Rajesh Lakhoni IAS

(Principle Secretary to Government)

Government of Tamil Nadu

Secretariat, St. George Fort

Chennai - 600 009

Phone : 044 - 25671496

E-mail : [email protected]

Web : www.tn.gov.in / departments /

energy.html

Central Electricity Regulatory

Commission (CERC)

3rd & 4th Floor, Chanderlok Building

No. 36, Janpath

New Delhi - 110 001

Phone : 011 - 23353503

Fax : 011 - 23753923

E-mail : [email protected]

Web : www.cercind.gov.in

Central Electricity Authority (CEA)

Mr. Ravinder (Chairperson)

Sewa Bhavan, Ramakirshnapuram

Sector - 1, New Delhi - 110 066

Phone : 011 - 26102583, 26109212

(R) - 011 - 251134548

Fax : 011 - 26109212

E-mail : [email protected]

Web : www.cea.nic.in

Government of Tamil Nadu

| 16th Annual Report | 40

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

1. Minister for Electricity : Thiru. Natham R. Viswanathan

2. Principal Secretary for Energy : Thiru Rajesh Lakhoni IASGovernment of Tamil Nadu

3. Chairman cum Managing Director : Thiru. K. Gnanadesikan I.A.S

4. Director,Generation TANGEDCO : Thiru. S. Devarajan M.E.,M.I.E.

5. Director,Distribution-TANGEDCO : Thiru. P. Annadurai B.E.,F.I.E.,

6. Director,Projects-TANGEDCO : Thiru. R. S. Alagappan B.E.,

7. Director / Finance- TANGEDCO : Thiru. S. Arulsamy, M.Com.,AICWA,ACS,B.Ed,BGL

8. Chairman-TANTRANSCO : Thiru. K. Gnanadesikan I.A.S.

9. Managing Director-TANTRANSCO : Thiru. R. V. Sundararaman B.E,M.A,F.I.E.

10. Director -Transmission Projects-TANTRANSCO : Thiru. K. Rangaraj B.E,M.C.A,F.I.E.,

11. Director-Finance-TANTRANSCO : Thiru. S. Sekkizhar F.C.A.,

12. Chairman - TNERC : Thiru. S. Akshayakumar

13. Member-TNERC : Thiru. S. Nagalsamy

14. Member-TNERC : Thiru. G. Rajagopal

15. Secretary- TNERC : Thiru. S. Gunasekaran

Central Government

1. Minister for Power : Shri. Piyush Goyal

Union Government of India

2. Secretary for Ministry of Power : . Pradeep Kumar Sinha

3. Chair Person-Central Electricity Authority : Neerja Mathur

4. Chair Person-Central Electricity Regulatory Commission : . Gireesh B. Pradhan

TANGEDCO

Shri

Shri

Shri

State Government

IMPORTANT OFFICIALS

| 16th Annual Report | 41

TAMIL NADU ELECTRICITY CONSUMERS' ASSOCIATION

1. CHENNAI REGION

1. Chennai - North 2. Chennai - Central

3. Chennai South 4. Chennai - West

5. Chenglepet

2. COIMBATORE REGION

1. Coimbatore - Metro 2. Coimbatore - North

3. Coimbatore - South 4. Nilgiris (Ooty)

5. Udumalpet

3. ERODE REGION

1. Erode 2. Salem

3. Mettur 4. Gobi

4. MADURAI REGION

1. Madurai 2. Dindigul

3. Madurai (Metro) 4. Ramanathapuram

5. Sivagangai

5. TIRUNELVELI REGION

1. Tirunelveli 2. Tuticorin

3. Kanyakumari 4. Virudhunagar

6. TRICHY REGION

1. Trichy - Metro 2. Trichy - North

3. Karur 4. Thanjavur

5. Pudukottai 6. Nagapattinam

7. VELLORE REGION

1. Vellore 2. Thirupattur

3. Dharmapuri 4. Kancheepuram

8. VILLUPURAM REGION

1. Villupuram 2. Cuddalore

3. Thiruvannamalai

LIST OF ELECTRICITY DISTRIBUTION CIRCLESIN TAMIL NADU

| 16th Annual Report | 42