The Tamilnadu Spinning Mills Association (TSMA) has urged the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) and Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to issue directives preventing any further levy of network charges from April 2025 onwards.
This request follows a Madras High Court ruling that struck down all demands for such charges on industries that have installed Rooftop Solar or Grid-Interactive Solar Systems (GISS) on their premises.
The Madras High Court’s order dated December 12, 2024 has completely set aside all Network Charge demands raised by TANGEDCO/TNPDCL. These charges were introduced through TNERC’s Tariff Order No. 8 of 2021 on metered solar power generation or the Capacity Utilization Factor (CUF) of Rooftop Solar/GISS projects.
Court’s decision
Following the court’s decision, TASMA has advised its members to immediately communicate with their respective Superintending Engineers (SEs) and Deputy Financial Controllers (DFCs) to ensure that no further Network Charges are included in their March 2025 electricity bills, it said in a communication.
The charges, which were levied based on metered solar power generation or the Capacity Utilization Factor (CUF) of the solar projects, had been increasing since October 2021.
For HT Industries, Network Charges were levied at ₹0.83 per unit from October 22, 2021 to September 09, 2022, increased to ₹0.96 per unit from September 10, 2022 to June 30, 2023, further raised to ₹1.00 per unit from July 1, 2023 to June 30, 2024, and finally set at ₹1.04 per unit from July 1, 2024 onwards.
Similarly, for LT/LT CT Industries, the charges started at ₹1.27 per unit from October 22 2021 to September 09, 2022, increased to ₹1.48 per unit from September 10, 2022 to June 20, 2023, then rose to ₹1.53 per unit from July 1, 2023 to June 30, 2024, and reached ₹1.59 per unit from July 1, 2024 onwards, according TASMA.
K Venkatachalam, Advisor to TSMA, said the Common Order of the High Court applies to all concerned. As CC (current composition) Bills for March 2025 are due by April 1, 2025, it is important to ensure compliance with the High Court’s ruling dated 22.12.2024. Any inclusion of Network Charges for Rooftop Solar/GISS-generated units would go against the court order.
