Tangedco requests information from Coimbatore office on industries shifted to MSME-eligible tariff for units with less than 12 KW load, following an industry request highlighting potential misclassification of 52,367 micro units.
Coimbatore: The Tamil Nadu Generation and Distribution Corporation (Tangedco) has initiated an inquiry into the reclassification of industries under the MSME-eligible tariff in Coimbatore. This move comes in response to a request from an industry in the region, which highlighted a potential misclassification affecting thousands of micro units.
In a communication issued last month, Tangedco revealed that the Industries Commissioner and Director of Industries and Commerce had sought details regarding the matter. The industry request claimed that 52,367 micro units in the region were incorrectly classified under tariff category LT IIIB instead of LT III A (1), resulting in excess charges being paid to Tangedco. The industry has requested a refund of the excess amount collected due to this alleged misclassification.
Following a clarification from the Tamil Nadu Electricity Regulatory Commission on the applicability of LT III A (1) to industries with less than 12 KW connected load, Tangedco is now seeking specific information. The data requested includes the number of service connections under LT III A (1) before September 29, 2023, the number of applications received for conversion since last September, and the number of conversions made to date.
Industry sources claim that only 18 of the micro units in Coimbatore have been converted to the correct tariff category so far. A micro unit owner emphasized that this is not a reclassification but a correction of the tariff that was being collected. They argued that Tangedco already possesses data on all units with less than 12 KW load and could easily change these services to the appropriate tariff category. Moreover, this tariff correction applies to all industries with less than 12 KW load, not just engineering units.
J. James, president of the Tamil Nadu Association of Cottage and Tiny Enterprises, highlighted the challenges faced by micro unit owners in this process. He stated, "A micro unit is run by a single person, sometimes with the support of a family member. The unit owner may not even be educated. How can he apply online for the tariff change and follow it up with Tangedco, when he has to run the unit for his livelihood?"
The outcome of this inquiry and the subsequent actions by Tangedco could have significant implications for thousands of micro industries in Coimbatore, potentially leading to more accurate tariff classifications and possible refunds for affected businesses.
In a communication issued last month, Tangedco revealed that the Industries Commissioner and Director of Industries and Commerce had sought details regarding the matter. The industry request claimed that 52,367 micro units in the region were incorrectly classified under tariff category LT IIIB instead of LT III A (1), resulting in excess charges being paid to Tangedco. The industry has requested a refund of the excess amount collected due to this alleged misclassification.
Following a clarification from the Tamil Nadu Electricity Regulatory Commission on the applicability of LT III A (1) to industries with less than 12 KW connected load, Tangedco is now seeking specific information. The data requested includes the number of service connections under LT III A (1) before September 29, 2023, the number of applications received for conversion since last September, and the number of conversions made to date.
Industry sources claim that only 18 of the micro units in Coimbatore have been converted to the correct tariff category so far. A micro unit owner emphasized that this is not a reclassification but a correction of the tariff that was being collected. They argued that Tangedco already possesses data on all units with less than 12 KW load and could easily change these services to the appropriate tariff category. Moreover, this tariff correction applies to all industries with less than 12 KW load, not just engineering units.
J. James, president of the Tamil Nadu Association of Cottage and Tiny Enterprises, highlighted the challenges faced by micro unit owners in this process. He stated, "A micro unit is run by a single person, sometimes with the support of a family member. The unit owner may not even be educated. How can he apply online for the tariff change and follow it up with Tangedco, when he has to run the unit for his livelihood?"
The outcome of this inquiry and the subsequent actions by Tangedco could have significant implications for thousands of micro industries in Coimbatore, potentially leading to more accurate tariff classifications and possible refunds for affected businesses.