Tamil Nadu Electrical energy Regulatory Fee (TNERC) stated a letter has been written to Principal Accountant Common Chennai for nomination of an audit occasion to hold out intensive audit of the circumstances which result in energy distribution firms persevering with with out restoration of regulatory property.
The prices incurred by energy distribution firms, which aren’t recovered in a well timed method, result in the regulatory property (RA).
The Supreme Courtroom had issued broader instructions to all of the State Electrical energy Regulatory Commissions (SERCs), mandating liquidation of legacy RAs inside 4 years. The highest courtroom has capped the creation of recent RAs at 3% of the Annual Income Requirement (ARR). It directed the Appellate Tribunal for Electrical energy (Aptel) to observe the implementation and implement accountability on the creation and liquidation of RAs.
As per a petition filed by TNERC with the Aptel, the State energy utilities’ regulatory property stood at ₹83,000 crore.
The State authorities has issued an order for the restructuring and bifurcation of the Tamil Nadu Technology and Distribution Company Restricted (Tangedco) for the formation of three firms, specifically the Tamil Nadu Energy Technology Company Restricted (TNPGCL), the Tamil Nadu Inexperienced Vitality Company Restricted (TNGECL), and the Tamil Nadu Energy Distribution Company Restricted (TNPDCL), it stated.
The regulatory property quantified at ₹83,000 crore have been allotted to the brand new firms – TNPGCL – @ 27% – ie,₹22,110.16 crores, TNGECL@- 2% – allocation of ₹1,851.71 crores and TNPDCL @-71% – allocation of ₹59,038 crore, TNERC stated.
TNERC additional stated it’s in dialogue with the state authorities and TNPDCL on the liquidation of regulatory property inside the time as stipulated by the Supreme Courtroom. On finalization of the scheme of liquidation of the Regulatory asset of ₹59,038 crores regarding TNPDCL by the state authorities and the Utility, the roadmap/trajectory will probably be submitted, it stated.
A letter has been addressed to the Principal Accountant Common, Chennai, in search of their help for nomination of an audit occasion to undertake the audit concerning the difficulty of regulatory property and to furnish the audit report on a time sure foundation, TNERC stated.
Saying hectic consultations are on with the state authorities and the facility distribution firm, TNERC hunted for grant of time to settle the difficulty.
Based on rankings agency ICRA’s estimate, the RA place on the all-India stage stays elevated at ₹3 lakh crore, primarily pushed by Tamil Nadu, Uttar Pradesh, Rajasthan, Maharashtra, Delhi, West Bengal, and Karnataka.
Printed – November 03, 2025 05:30 am IST