No hike in power tariff for domestic consumers in Tamil Nadu, Energy News, ET EnergyWorld

CHENNAI: Power tariff in Tamil Nadu will remain the same for domestic cosumers but will go up by 2.18 per cent for other categories from July 1.

The state government will pick up the tab for domestic consumers by compensating the Tamil Nadu Electricity Generation and Distribution Corporation (Tangedco). But domestic consumers will have to pay a bit more for the common area connections, which will now be charged 8.17 per unit against the earlier 8. “This is a marginal increase compared to other states; consumers who paid 100 will pay 102,” said Tangedco officials.

The 2.28 per cent tariff hike will be applicable for fixed and demand charges too in other categories such as commercial and high-tension connections.

As earlier, domestic connections get the first 100 units for free and the second 100 units with 50 per cent subsidy if the bi-monthly consumption does not exceed 500 units. In connections under the I-A category, the first 400 units are charged ‘4.5 per unit, after which the per unit rate increases for every 100 units.

The Tamil Nadu Electricity Regulatory Commission (TNERC) is likely to issue a revised tariff order in the last week of June. “We just have to update the numbers in the software to get consumption charges calculated as per the revised tariff,” said officials.

The TNERC announced a multi-year tariff formula last year for an automatic increase in electricity tariff based on consumer price inflation comparing the consumer price index of the present year with that of the corresponding month last year. While the cap was 6 per cent, Tangedco initially arrived at 4.7 per cent comparing the price indices of April 2022 and 2023. However, chief minister M K Stalin asked officials to compare the price indices of August 2022 and April 2022, since the tariff was last hiked in September. Thus, the inflation rate of 2.18 per cent was arrived at.

K E Raghunathan, national president of the Association of Indian Entrepreneurs, said the tariff hike would directly impact all MSMEs and commercial establishments. “When the MSMEs are demanding rollback of last year’s tariff hike, it is a pity that the tariff is going to be hiked again. I see no rationale behind this, except reduction of some losses for Tangedco. The gap between the government understanding and the people’s requirement is widening,” he said.

  • Published On Jun 9, 2023 at 12:42 PM IST

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