Author: PPD Team Date: 31/03/2025
The Madras High Court has struck down additional network charges imposed on rooftop solar power used for captive consumption. This ruling is expected to ease costs for industrial consumers and boost solar energy adoption in Tamil Nadu.
The case involved 22 petitions, including one from the South India Spinners Association, challenging charges levied by Tamil Nadu Generation and Distribution Corporation (Tangedco), now Tamil Nadu Power Distribution Corporation Limited (TNPDCL). The court ruled that these additional charges went against the state’s policy and statutory regulations meant to promote solar power.
The dispute stemmed from a 2021 tariff order by the Tamil Nadu Electricity Regulatory Commission (TNERC). It mandated network charges of Rs 0.83 per unit for high-tension (HT) solar consumers and Rs 1.27 per unit for low-tension (LT) consumers. The latest revision raised these charges to Rs 1.04 and Rs 1.59 per unit, respectively.
Senior Counsel A.L. Gandhimathi, representing the petitioners, argued that the electrical inspectorate (EI) had fixed rooftop solar charges at 10 paise per unit, and no additional fees should be imposed. However, TNPDCL’s counsel, Richardsan Wilson, defended the charges, stating that connectivity and conversion facilities provided by Tangedco justified the levy.
Justice Anita Sumanth dismissed TNPDCL’s arguments, noting that Tangedco had previously failed in its attempt to modify the 2021 tariff order. She highlighted that development costs were already factored into the tariff as hidden charges, making the additional levy unjustifiable.
The ruling is expected to encourage further investment in rooftop solar projects and reduce electricity costs for industrial consumers in the state.