Thursday, February 26, 2015

Situation of TN Power Utility

Year over year, Tamil Nadu Electricity Board (TNEB) through its subsidiary Tamil Nadu Generation and Distribution Company (TANGEDCO) has been accumulating losses. Past tariff increases had not quite helped to bring down the rate of increase of accumulated losses. But due to the tariff revision effected in December last year, TNEB has been able to generate some additional revenue, mainly because more power is being generated. As a result, TNEB can now begin to think of wiping out the accumulated losses. But the road ahead will not be easy.
Compared to last January , the revenue this year has increased by 20%.The increase is mainly due to the 15% tariff revision effected in December 2014 and also due to measures taken to cut down transmission and distribution losses.

Last year the annual loss touched Rs. 13,985 crore ­ up by 20% compared to 2012-13. The December hike may not have a significant impact on this year's loss position but augurs well for next year. Due to continuous increase in losses, the accumulated losses at the end of last financial year increased to Rs. 52,226 crore. Purchase of power, interest and financial costs had eaten up the company's revenue from sale of power which increased by 11% compared to the previous year.


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