Tangedco plans to pull power plug on local bodies over Rs 2k crore bill dues

Decision taken at head office meet to be sent to govt for nod; civic bodies to get 7-day deadline

Published: 09th March 2023 06:07 AM  |   Last Updated: 09th March 2023 06:07 AM   |  A+A-

TANGEDCO, Electricity

Image for representational purpose. (Photo | Express)

Express News Service

CHENNAI:  Local body offices across the state may soon get a power shock as the Tamil Nadu Generation and Distribution Corporation (Tangedco) has decided to disconnect their electricity supply, except for essential services such as street lights, hospitals, and water supply, over pending power bill dues. According to the data accessed by TNIE, the total dues from local bodies stand at Rs 1959.67 crore.

The decision to disconnect power to civic bodies was taken at a board meeting held at Tangedco head office in Chennai on February 15. The minutes of the meeting were accessed by TNIE on Wednesday. According to the Tangedco data, corporations across the state owe Rs 660.05 crore, municipalities Rs 319.69 crore, town panchayats `48.02 crore, and outstanding due from village panchayats is Rs 931.91 crore. 

Many local bodies had pending dues for years. Despite repeated reminders, no action was taken to settle the dues by the departments concerned. Sometimes, they clear a minimum amount after multiple reminders from the power utility, sources said.  

To end the practice, officials have now decided to issue notices to all local bodies and set a seven-day deadline for them to act. If they fail to comply, power supply will be disconnected immediately, a senior official said. Facing a massive debt of Rs 1.58 lakh crore, the power utility has initiated several steps to improve revenue and pare down its liabilities. 

The official said the decision of the board would be sent to the state government within a week, and after getting the state’s approval, notices will be issued to local bodies seeking reply within seven days. 
Meanwhile, Tangedco’s chief financial controller (revenue) K Malarvizhi on Monday instructed all superintending engineers through email to review section-wise defaulters every week and initiate action to ensure timely realisation of revenue. 

Despite continuous monitoring and repeated reminders, it has been noticed that a large number of services are still not disconnected and continue to consume power after a mere disconnection entry in the software. Because of such tardy actions, the Tangedco’s reputation is at stake, the officer said in her mail. The financial controller also directed officials to disconnect defaulting services physically and register them properly in the LT billing package. 


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