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TANGEDCO Imposes Hefty Penalties for Dumping of Harmonics into the Grid

The relevant provisions of the new tariff order are reproduced below. 

10.1.2 - Harmonics: As specified in the Supply Code, when the consumer fails to provide adequate harmonic suppression equipment to avoid dumping of harmonics beyond the limits as specified by CEA regulations into Licensee's distribution system, he is liable to pay compensation at 15% of the respective tariff. As and when the consumer brings down the harmonics within the limit, compensation charges shall be withdrawn. The measurement of harmonics shall be done by the Distribution Licensee using standard meters/equipments in the presence of consumers or their representatives. This compensation provision is applicable to HT-I & HT-III category of consumers. The TANGEDCO shall give three months clear notice to all consumers under these categories stating that they shall pay 15% compensation charges if the harmonics introduced by their load is not within the limits set by CEA. The TANGEDCO shall implement the compensation provision after the three months period if the measured harmonics is more than the limits. 

As per clause 2.1.85 TANGEDCO should not demand 15% extra energy charges from a consumer maintaining quality power at the point of common coupling with proper harmonic equipment. Central Electricity Authority (CEA) have given power quality parameters for the bulk consumers in their Notification No. 12/X/STD (CONN) GM/CEA (21-Feb-07) (the Central Electricity Authority (technical) Standards for Connectivity to the Grid) Regulations, 2007 in Part IV under the heading "Grid Connectivity Standards" applicable to the distribution system and bulk consumers. 

CEA have sought compliance of the following: 

a. Total voltage harmonic distortion should not exceed 5% 

b. Total current distortion should not exceed 8% 

Hence, such extra charges should be levied only on those consumers who do not meet the requirements of CEA. 

The effect of the notification is that, non-compliance with this notification will attract a penalty of 15% of the energy charges. The complete notification can be found here. 

The Government of Tamil Nadu ( GoTN ) had issued policy directions under sub-section(1) of section 108 of the Electricity Act, 2003, for extension of free supply / concessionaltariff to different categories of consumers like Hut consumers, Agricultural consumers,Domestic consumers, Actual places of public worship, Powerloom consumers,Handloom consumers and Lift Irrigation cooperative societies for agriculture. The Government has also committed to provide subsidy to meet the shortfall in revenue to TANGEDCO u/s 65 of the Electricity Act, 2003. 

The details can be found here.