TNERC approves Rs 16,274 crore subsidy for TNPDCL
Tamil Nadu Electricity Regulatory Commission tells State government, and also directed the distribution corporation to get details on hut and agri connections;
CHENNAI: Tamil Nadu Electricity Regulatory Commission (TNERC) has approved Rs 16,274.58 crore as a subsidy to be paid by the State government to Power Distribution Corporation Ltd (TNPDCL) provisionally for the financial year 2025-26. The TNERC has also issued directives to TNPDCL to get details about hut connections and agriculture-connected loads.
According to the provision tariff subsidy order for 2025-26, the subsidy paid to the domestic and agricultural consumers accounts for 90% of the total subsidy paid by the TN government.
Of the total amount, Rs 7,752.61 crore will go towards subsidies paid to domestic consumers, and Rs 7047.89 crore towards providing free power to all types of farmers. Under the provision of free power, the hutment consumers would get Rs 360.55 crore, power loom weavers would get Rs 560.43 crore and actual places of worship would get Rs 19.94 crore.
The subsidy paid for the LT Industry consumers is Rs 321.44 crore. The TN government would also pay a subsidy of Rs 387 crore for the time of day (ToD) charges and Rs 11.05 crore of solar network charges for the LT 3B industries consumers.
TNPDCL, in their letter dated March 20, has stated that the State government has allotted Rs 17,209.46 crore in the budget for FY 2024-25 towards tariff subsidy payable to Tangedco. A provisional subsidy of Rs 15,291 crore was sanctioned for TNPDCL for 2024-25.
TNERC has also asked TNPDCL to reconcile its subsidy allowed with the actual consumption and revenue assessed for 2024-25 and to furnish the report on or before May 31. While submitting the actual consumption details, it should be ensured that slab-wise consumption is furnished correctly.
TNERC has directed the TN government to provide a subsidy in advance in the manner specified for 2025-26 to compensate for the shortfall in revenue to TNPDCL, consequent to the extension of free supply/reduction of tariff as per the policy direction.
KEY POINTS:
Total subsidy payable by TN government: Rs Rs 16,274.58 crore for 2025-26
Domestic consumers: Rs 7,752 crore
All types of agri consumers: Rs 7,047 crore
Powerloom weavers: Rs 560 crore
LT Industries 3B consumers: Rs 398 crore
Hut consumers: Rs 360 crore