Power tariff cut for domestic common supply, evokes mixed reaction

CHENNAI: Tamil Nadu Chief Minister M K Stalin’s announcement of a reduction in electricity tariff for the domestic common service connections, under the LT 1D tariff category, has evoked a missed response from the apartment dwellers.

Reviewing the implementation of the government schemes as part of the ‘CM on field visit’ at Maraimalai Nagar near here, he announced that the common service connection charges for small apartments would be reduced to Rs 5.50 per unit from Rs 8.15 per unit for apartments with less than 10 houses, three floors and without lift facility.

Under the existing domestic common connection tariff, apartment dwellers have to pay energy charges of Rs 8.15 per unit and fixed charges of Rs 102 per kilowatt per month.

There are around three lakh connections that fall under the LT 1D tariff category, created anew in the September 2022 tariff revision.

Earlier, the small apartments were charged under the domestic tariff for common usage.

Apartment dwellers strongly opposed the move to create a new tariff category for the common services with higher tariffs. As per the tariff order, the average cost of supply is Rs 8.35 per unit in 2022-23.

The domestic consumers which is a subsidised consumer category pay an average billing rate of Rs 5.95 per unit while the common service consumer’s average billing rate is Rs 8.98 per unit.

Though domestic consumers welcomed the CM’s announcement, they want the energy charges reduction to be extended to all common service connection users without any conditions. VS Jayaraman of T Nagar Residents’ Welfare Association said his apartment has 28 houses on three floors but no lift. “We will not benefit from the decision as we have more than 10 houses. I urge the government to consider extending the tariff reduction to all common service connection consumers without any conditions,” he said.

K Kathirmathiyon, secretary of Coimbatore Consumer Cause said the chief minister has attempted to correct wrongs done by Tangedco during the last year’s tariff revision. “However, the tariff reduction should be extended to all apartments. The energy consumed for the sewage treatment plant, water pumps, lights, and lifts are only for domestic purposes,” he said. He noted that individual luxury houses having lifts and swimming pools pay only subsidised domestic tariffs.

The new charges will come into effect only after the TNERC approves the state government’s formal order to provide a subsidy to compensate for the loss suffered by Tangedco.

CHANGE IN ENERGY CHARGES

Existing: Rs 8.15% unit

Revised: Rs 5.50/ unit

No change effected in Rs 102 per kW per month fixed charges

Rs 8.35/unit — Average cost of supply

Rs 5.95/unit — Average billing rate for domestic users

Rs 8.98/unit — Average billing rate for domestic common supply

How much one pays now:  If a small apartment consumes 100 units with a connected load of 1 kW under LT 1D tariff, the bill will be Rs 1,019 including fixed charges of Rs 204.

Under reduced charges: Energy bill will come down to Rs 754 including fixed charges of Rs 204, i.e. down by 26 per cent or Rs 265 for 100 units