Tamil Nadu Electricity Regulatory Commission (TNERC) said a letter has been written to Principal Accountant General Chennai for nomination of an audit party to carry out intensive audit of the circumstances which lead to power distribution companies continuing without recovery of regulatory assets.
The costs incurred by power distribution companies, which are not recovered in a timely manner, lead to the regulatory assets (RA).
The Supreme Court had issued broader directions to all the State Electricity Regulatory Commissions (SERCs), mandating liquidation of legacy RAs within four years. The top court has capped the creation of new RAs at 3% of the Annual Revenue Requirement (ARR). It directed the Appellate Tribunal for Electricity (Aptel) to monitor the implementation and enforce accountability on the creation and liquidation of RAs.
As per a petition filed by TNERC with the Aptel, the State power utilities’ regulatory assets stood at ₹83,000 crore.
The State government has issued an order for the restructuring and bifurcation of the Tamil Nadu Generation and Distribution Corporation Limited (Tangedco) for the formation of three companies, namely the Tamil Nadu Power Generation Corporation Limited (TNPGCL), the Tamil Nadu Green Energy Corporation Limited (TNGECL), and the Tamil Nadu Power Distribution Corporation Limited (TNPDCL), it said.
