Textile mills demand removal of network charges for rooftop solar energy plants in Tamil Nadu

Textile mills and High Tension electricity consumers in Tamil Nadu have sought withdrawal of network charges on rooftop solar energy installations based on a High Court order given in December 2024.

The South India Spinners Association (SISPA) and a few more textile mills had filed a case with the Madras High Court on levy of network charges for rooftop solar energy generation in August 2022 challenging the levy. An interim order was issued by the High Court directing the Tamil Nadu Generation and Distribution Corporation to not collect the charges. Yet, the Tangedco continued to collect the network charges. Subsequently, in December 2024, the Court favoured the petitioners and said the Tangedco should not collect the network charges.

“This is a landmark judgement and the Tangedco should not collect the charges. The full order copy was published last week and the Tangedco will start estimating the consumption charges from April 2. It should go by the High Court order and not collect the charges,” S. Jagadesh Chandran, secretary of the Association, told The Hindu on Tuesday.

The Tamil Nadu Electricity Consumers Association (TECA) president N. Pradeep said in a press statement that HT consumers paid ₹1.04 a unit and LT and LT CT consumers pay ₹1.59 a unit as network charges. The Association had objected the charges even in 2021 when the draft regulations were issued. The High Court had set aside all network charge demands raised by the Tangedco, now known as Tamil Nadu Electricity Distribution Corporation. The Corporation should immediately stop levy of the charges. The TECA has requested all its members with rooftop solar projects to inform the respective electricity officials of the High Court order and ask them to stop collecting the charges.

K. Kathirmathiyon, secretary of Coimbatore Consumer Cause, said the High Court order should be welcomed and the Electricity Department should encourage solar energy generation rather than penalising it. It would reduce line losses for the Department.