‘Tamil Nadu Generation and Distribution Corporation Ltd’s (Tangedco) failure to factor in transmission loss in the Energy Purchase Agreements (EPA) with solar power generators (SPG) had resulted in additional expenditure of ₹245.27 crore between March 2015 and March 2021. This was a loss to Tangedco and an undue benefit to the SPGs, said the Compliance Audit Report of the Comptroller and Auditor General of India (CAG) for the year ended March 31, 2020.
The report was placed before the Tamil Nadu Legislative Assembly on Thursday. It relates to matters arising from audits by the Accountant General (Audit-II), Tamil Nadu and Puducherry, relating to 14 government departments, including 60 PSUs and 40 autonomous bodies under the control of these departments.
The CAG report on implementation of 74th Constitutional Amendment Act was also placed before the House. It contains results of the performance audit on implementation of the 74th Constitutional Amendment Act relating to Urban Local Bodies in Tamil Nadu.
Preferential tariff
Tangedco entered into a long term EPA for 25 years with 86 SPGs under Preferential Tariff Scheme between March 2015 and March 2019. The EPA required that meters should be installed and connected at the point of inter-connection between the electrical system and generating SPG and the transmission/distribution system, at the cost of the SPG. These 86 SPGs have installed the energy accounting meters at the generating end and erected the necessary transmission lines, at their cost, to connect them with the nearest sub-stations owned by Tangedco/Tamil Nadu Transmission Corporation (Tantransco).
The audit observed that the SPGs did not adhere to the EPA and the Central Electricity Authority (CEA) Regulations — they did not install the meters at the interconnection point. Considering the rate of transmission loss approved by the Tamil Nadu Electricity Regulatory Commission from time-to-time, transmission loss absorbed by Tangedco during March 2015 to March 2021 worked out to 406.06 million units (MU). This resulted in additional expenditure of ₹245.27 crore, the report said.
The audit recommended that Tangedco change the location of energy accounting meters to Tangedco/Tantransco’s sub-location end to avoid further loss which may continue beyond March 2040. The present EPA is for a period of 25 years from March 2015.
The report also said that Tangedco’s failure to revise the quantum of power allotted based on the outage of open access generators, and to restrict the adjustment to entitled quanum, resulted in excess adjustment of power to consumers leading to a loss of ₹53.05 crore.