tamil nadu electricity consumers'...
TRANSCRIPT
| 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
GOOGLE GROUPS
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
| 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
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
th A
nn
ual R
ep
ort |3
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]
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