The Tamil Nadu Generation and Distribution Corporation recently clarified that Micro, Small and Medium-scale Enterprises (MSMEs) with less than 12 KW load will not be shifted from tariff IIIB to LT IIIA (1) and that they need to apply for the same.

The Federation of Coimbatore Industrial Associations (FOCIA) had written to the Tangedco that the software should be changed so that all MSMEs with industrial service connection of less than 12 KW would be collected electricity charges under III A (1) classification automatically and not III B as was done now.

However, the Tangedo clarified that only those MSMEs that applied for the same would be shifted to tariff classification III A (1). It cited an order of the Tamil Nadu Electricity Regulatory Commission (TNERC) for the same.

The TNERC had said that the tariff conversion from LT III B t III A (1) would take prospective effect from the date of effect as specified sub-regulation 9(2) of the supply code on application by the concerned consumer with production of necessary documents as mandated in the tariff order.

J. James, Tamil Nadu Association of Cottage and Tiny Enterprises (TACT), said that while the micro units need to apply to the Tangedco for change in the tariff classification, the Tangedco was collecting power factor penalty from all micro and cottage enterprises with less than 18 KW load by monitoring it through the online system.

The micro units were reeling under high power costs and the State government had not addressed the issue. Now, it was refusing to change the tariff classification. The power costs were choking the micro units in the manufacturing sector, he said.