TANGEDCO Lost Rs 385 Crore in 2022–23 Due to Billing Problems
The CAG report for the year 2022-23 said, despite knowing that TANGEDCO is losing huge revenue, it did not take any remedial measures to arrest the revenue leakage
Chennai: The Comptroller and Audit General (CAG) report on Tuesday said the non-generation of bills based on the metre reading at substation end in respect of HT consumers receiving supply through dedicated feeders resulted in short billing by distribution loss and eventual revenue loss of Rs 385 crore for the Tamil Nadu Generation and Distribution and Corporation (TANGEDCO).
The report for the year 2022-23 said, despite knowing that TANGEDCO is losing huge revenue, it did not take any remedial measures to arrest the revenue leakage. No steps had been taken to amend the agreement with the HT consumers or request the Tamil Nadu Electricity Regulatory Commission to frame norms in its electricity supply code regarding installation and billing of meters.
Due to incorrect method of billing, the energy consumption recorded at consumer end instead of at the substation end for the HT consumers who are extended power supply under dedicated feeders, the corporation lost revenue to the extent of Rs 385 crore in 2022-23.
The TANGEDCO should consider the practice followed by other power utilities in other States or approach the regulatory commission to bring an amendment to the supply code regarding billing of meters installed at substation ends for consumers under dedicated feeders to avoid loss of revenue, the report said.
The report further said non-finalisation of tender within the validity period by the tender committee resulted in avoidable expenditure of Rs 48 crore on procurement of conductors. The corporation should record the reasons for any deferment of tender future and fix responsibility on the concerned officials who were responsible for the undue delay, the report recommended.
It further said the deficiency in taking note of the lower prices paid by the field officers resulted in avoidable extra expenditure of Rs 21 crore on the procurement of insulators. The TANGEDCO should install a system for comparison and ensure reasonableness of rates of materials for better negotiation before finalising the tenders, it recommended.