Micro units in Coimbatore district continue fight to bring down electricity costs

For the micro industries in Coimbatore district, rising electricity costs continue to be a matter of concern and the industry associations continue their fight to control the costs.

For the 58,000 units in the micro category in Coimbatore and Tiruppur districts, that mostly do job works for larger industries in pumpset, automobile, textile, and other machinery sectors, power constitutes over 20% of the costs they incur.

These units that run in one room sheds or on rented buildings use both, CNC machinery and hand operated machinery that have high power consumption.

Since the approval of a multi-year tariff order in 2022 by the Tamil Nadu Electricity Regulatory Commission, the units have been staging protests demanding reduction in fixed charges and withdrawal of peak hour charges.

While the government has put on hold the peak hour charges, the fixed charges were not revised.

One of the recent issues is classification of micro units with less than 12 KW load under tariff slab III B while these units should be under the slab III A (1). The Tamil Nadu Electricity Regulatory Commission has said that units with less than 12 KW load should be under the III A (1) slab. But, the Tamil Nadu Generation and Distribution Corporation (Tangedco) says it will effect the change only to those units that submit applications.

Representatives of the Federation of Coimbatore Industrial Associations recently submitted petitions to Tangedco and had a meeting with the Chief Engineer of Tangedco, Coimbatore.

“The job suppliers have not increased the rate for the work outsourced. The job working micro units are only facing increasing pressure to reduce the costs,” said J. James, a co-ordinator of the Federation.

S. Gandhi, president of the Power Engineers Association, said in a recent memorandum to the Industries Commissioner that approximately ₹140 crores was collected from 52,367 micro units as excess tariff in Coimbatore and Tiruppur districts for no mistake of the units. If the unit had consumed the power for other purposes or in excess, the Tangedco can collect additional amount. However, in this case, the Tangedco classified the units under the wrong category and wants the units to apply individually to set it right.

Another issue that is worrying the industries are the levy of penalty for power factor in micro units. “While the Tangedco is yet to implement harmonics for the larger industrial consumers, why has it started levying penalty on micro units ?,” asks Mr. Gandhi.

“An unit near Ondipudur is asked to pay penalty of ₹12,000 or so for power factor, while the power charges are only ₹6,000. The entire monthly earnings of the unit will go towards this,” said Mr. James.

The Coimbatore and Tiruppur district Tiny and Micro Enterprises Association plans to submit a memorandum to Tangedco on this.

A.D. Thirumoorthy, energy consultant, says power factor maintenance is not easy for micro units. The only option is to go again to the TNERC and seek changes.