Green power producers sore as TN set to increase transmission charges by 14 fold

Chennai, July 29 The Green power producers in the state are sore as the Tangedco has submitted a proposal to the Tamil Nadu Electricity Regulatory Commission to raise the transmission charges.

According to the proposal submitted by Tamil Nadu Distribution and Generation Company (Tangedco), the charges per unit for transmission will be increased to Rs 1.52 from the present 11 paise per unit.

The present proposal also has decided to do away with the practice of a 50 per cent subsidy for green power producers, including windmills and solar power producers. Tangedco has in the new proposal decided to charge Rs 1.52 per unit as transmission fee irrespective of the nature of power produced.

However, Tangedco maintains that the hike in Tamil Nadu is not as high as in Uttar Pradesh where per unit of power is transmitted at a rate of Rs 1.60, and in Madhya Pradesh where the rate is fixed at Rs 1.58 per unit.

K. Venkitachalam, president of Tamil Nadu Spinning Mill Association while speaking to IANS said, "If the transmission charges are increased even for green power, then no one will be interested in producing power in the green sector."

He also called upon the Tamil Nadu power utility to reconsider the decision.

Tamil Nadu is a major producer of wind power and the decision of the Tangedco will adversely affect the prospects of the windmills.

Dr. Sumit Narayanan, Independent Researcher and former head of a leading windmill company while speaking to IANS said, "This is unfortunate. On the one hand, the state is showcasing that it is promoting green electricity and renewable energy and on the other hand a blatant 14-fold increase in transmission charges. This will not go side by side. This will definitely reduce the windmill projects in the state."