Section 5(1) in The Tamil Nadu Electricity Supply Code, 2004
(1)Capacitor compensation charge:(a)No new LT service with a connected load of motors of 3 HP and above or for using welding transformers shall be given unless capacitors of adequate ratings with 1S1 marking are installed; [The licensee shall specify appropriate capacitor ratings for different capacity Motors/welding transformers] [Inserted by Commission's Notification No. TNERC/SC/7-4 dated25.5.2007 w.e.f.l3.6.2007)].(b)In case of existing LT service connections (which are not coming under the purview of power factor incentive/disincentive scheme) with connected load of motors of 3 HP and above or for using welding transformers (irrespective of their rating), the consumer shall install adequate capacitors within a period of two months [(from the date of issue of notice issued by the licensee in this connection] [Inserted by Commission's Notification No. TNERC/SC/7-4 dated25.5.2007 w.e.f. 13.6.2007)] and shall be liable to pay a compensation charge of ten per cent of the price of electricity supplied to him for the preceding four months of consumption till such time adequate capacitors are installed; and where inadequate capacitors are installed or where some of the capacitors are defective, the ten percent shall be reckoned proportionate to the extent of inadequacy or defect, as the case may be;(c)Where it is found that the capacitors installed are either inadequate or defective, the licensee shall, in addition to the levy and collection of capacitor compensation charges, by notice in writing, call upon the consumer to install adequate capacitors or to rectify or to replace the defective capacitors, as the case may be, within two months from the date of notice.
