Discom spent additional Rs 13K crore to buy more power than okayed in '23-24

New Indian Express

05-05-2025

CHENNAI: Tamil Nadu Power Distribution Corporation Limited (TNPDCL) purchased 82,906 MUs of electricity at a cost of Rs 55,754 crore in 2023-24 while Tamil Nadu Electricity Regulatory Commission (TNERC) had approved the purchase of only 73,730 MUs for Rs 42,575 crore. This resulted in an excess procurement of 9,176 MUs and an additional expenditure of Rs 13,179 crore.
According to the recent True-Up order given on April 30, the discom was allowed to purchase 40,686 MUs from central generating stations but managed to get only 37,661 MUs. On the other hand, it exceeded the limit in other areas. While TNERC had approved 1,961 MUs from independent power producers (IPPs) at Rs 1,094 crore, the discom purchased 4,236 MUs at Rs 2,938 crore — an additional expenditure of Rs 1,844 crore.
Similarly, in the case of power exchange purchases, TNERC had given permission for 4,428 MUs at Rs 4,170 crore. But the discom procured 8,606 MUs for Rs 7,953 crore. The commission has raised concern over the sharp rise in power purchase cost, saying it does not match the values approved in the previous tariff order. Responding to TNERC's queries, TNPDCL said the increase was mainly due to a revision in fixed charges by central generating stations and a hike in energy charges passed through by the generators.