Tue Apr 29 18:07:38 UTC 2025: ## Chennai Government Buildings Overpay on Electricity by Crores: CAG Report
**Chennai, Tamil Nadu, April 29, 2025** – A Comptroller and Auditor General of India (CAG) report tabled in the Tamil Nadu Assembly today reveals that ten government buildings in Chennai incurred an avoidable electricity expenditure of ₹4.88 crore due to failure to revise their contracted power demand. An additional ₹1.68 crore was unnecessarily spent due to inaction on power factor correction in another building.
The audit examined electricity bills from 2017-2023 for ten government departments, including the Commissioner of Treasuries and Accounts, the Tamil Nadu State Information Commission, and the Directorate of School Education. The report found that these departments consistently paid for a higher contracted demand than their actual electricity consumption. In some cases, usage was as low as 3% of the contracted demand. Even when regulations allowed for a 50% reduction in contracted demand annually, none of the departments took advantage of this provision.
The CAG calculated the avoidable expenditure by comparing the actual contracted demand with a more reasonable estimate, adding 10% to the highest recorded demand for each building. This analysis highlighted the significant overpayment, reaching ₹4.88 crore across the ten buildings.
The report recommends that the government direct all departments to review their contracted demands and renegotiate with Tamil Nadu Generation and Distribution Corporation Limited (Tangedco) based on actual consumption. The lack of documentation explaining the basis for the initially high contracted demands was also criticized. The findings underscore the need for better management of government resources and highlight significant potential cost savings.
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