Letter written to Principal Accountant for audit of discom regulatory property: TNERC

Tamil Nadu Electricity Regulatory Commission (TNERC) stated a letter has been written to Principal Accountant General Chennai for nomination of an audit get together to hold out intensive audit of the circumstances which result in energy distribution firms persevering with with out restoration of regulatory property. 

The prices incurred by energy distribution firms, which aren’t recovered in a well timed method, result in the regulatory property (RA). 

The Supreme Court had issued broader instructions to all the State Electricity Regulatory Commissions (SERCs),  mandating liquidation of legacy RAs inside 4 years. The prime courtroom has capped the creation of latest RAs at 3% of the Annual Revenue Requirement (ARR). It directed the Appellate Tribunal for Electricity (Aptel) to observe the implementation and implement accountability on the creation and liquidation of RAs.

As per a petition filed by TNERC with the Aptel, the State energy utilities’ regulatory property stood at ₹83,000 crore.

The State authorities has issued an order for the restructuring and bifurcation of the Tamil Nadu Generation and Distribution Corporation Limited (Tangedco) for the formation of three firms, particularly the Tamil Nadu Power Generation Corporation Limited (TNPGCL), the Tamil Nadu Green Energy Corporation Limited (TNGECL), and the Tamil Nadu Power Distribution Corporation Limited (TNPDCL), it stated.

The  regulatory property quantified at  ₹83,000 crore had been allotted to the brand new firms – TNPGCL – @ 27% – i.e.,₹22,110.16 crores, TNGECL@- 2% –  allocation of ₹1,851.71 crores and TNPDCL @-71% – allocation of ₹59,038 crore, TNERC stated.

TNERC additional stated it’s in dialogue with the state authorities and TNPDCL on the liquidation of regulatory property inside the time as stipulated by the Supreme Court.  On finalisation of the scheme of liquidation of the Regulatory asset of ₹59,038 crores referring to TNPDCL by the state authorities and the Utility, the roadmap/trajectory will likely be submitted, it stated. 

A letter has been addressed to the Principal Accountant General, Chennai, in search of their help for nomination of an audit get together to undertake the  audit relating to the difficulty of regulatory property  and to furnish the audit report on a time sure foundation, TNERC stated.

Saying hectic consultations are on with the state authorities and the ability distribution firm, TNERC looked for grant of time to settle the difficulty.

According to rankings agency ICRA’s estimate, the RA place on the all-India stage stays elevated at ₹3 lakh crore, primarily pushed by Tamil Nadu, Uttar Pradesh, Rajasthan, Maharashtra, Delhi, West Bengal, and Karnataka.