The age-old dilemma over the viability of having multiple electricity distribution companies in Tamil Nadu seems to have influenced the State government in not creating regional distribution companies (discoms).
The government, through two orders issued on January 24, cleared the proposal for unbundling the Tamil Nadu Generation and Distribution Corporation (Tangedco) and permitting the formation of three entities instead - one each for thermal power generation, green energy and distribution. The proposed discom will take care of around 2.3 crore domestic consumers and nearly 23.3 lakh agriculture connections. The State has a total of 3.3 crore low-tension (LT) consumers,
Ever since the Electricity Act, 2003, came into effect, the talk of having more than one discom has been doing the rounds among policy makers. Apart from the factor of resistance to change, the question arises whether regional discoms, if created for the Cauvery delta and southern districts, would be viable, given the fact that the two regions are having a large number of agricultural connections covered under the free power scheme.
