The Tamil Nadu Spinning Mills Association (TASMA) has urged the Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) to halt the collection of network charges for rooftop solar systems installed by industrial consumers, following a recent Madras High Court order. The court struck down the levying of network charges, ruling that it was contrary to the state’s solar policy and regulations. The order was issued in response to a petition filed by solar power generators, who argued that the network charges imposed by TNPDCL were unfair and enriched the utility at the expense of solar power generators.
TASMA’s chief advisor, K Venkatachalam, has also sought a refund of the network charges collected from rooftop solar plants installed by industrial consumers since October 2021. The Tamil Nadu Electricity Regulatory Commission had introduced the component of network charges through its tariff order in 2021, and it was later revised three times. The network charges for high-tension (HT) industries have increased to Rs 1.04 per unit, while for low-tension (LT) and LT-CT industries, it has risen to Rs 1.59 per unit.
Venkatachalam has warned TNPDCL that it may face contempt action if it levies network charges on units generated through rooftop solar plants in the current consumption bill. The move is seen as a significant step towards promoting the use of renewable energy sources, and reducing the state’s reliance on fossil fuels. The Madras High Court’s order has given a boost to the solar energy sector, and TASMA’s representation to TNPDCL is likely to lead to a more favorable regulatory environment for solar power generators.