Electricity Consumers Association asks Tamil Nadu govt not to hike electricity tariff from July 1

CHENNAI: With the yearly electricity tariff hike to come into effect from July 1, the Tamil Nadu Electricity Consumers Association, a representative body comprising industrial consumers, has urged the state government not to revise the tariff for the industrial sector considering the current market conditions, which are under significant stress.

Tamil Nadu Electricity Regulatory Commission (TNERC) passed a multi-year tariff order on September 10, 2022, after a gap of eight years, with a control period of five years.

As part of the multi-year tariff (MYT) framework, the commission is empowered to fix tariffs using a formula based on the consumers' price index, wholesale price index or a specific percentage or value required to meet the aggregate revenue requirement of the TANGEDCO.

Based on the MYT framework, the commission passed a tariff order with effect from July 1, 2023 by comparing the general CPI index of April 2023 with the index of August 2022 and hiked tariff by 2.18 per cent for both the energy and fixed/demand charges.

The industries with high-tension electricity connections which were paying demand charges of Rs 550 per kVA had to pay Rs 562 after the revision, while the consumption charges rose to Rs 6.90/unit from Rs 6.75 per unit.

TECA said that the next tarif revision is expected on July 1, 2024.

"We strongly urge the Tamil Nadu Government to consider the current market conditions, which are under significant stress, and to avoid any further tariff hikes. A stable tariff structure would provide substantial relief to the industry during these challenging times, " the association said. TECA, however, said it remains committed to working closely with the government and the Commission to ensure that the interests of electricity consumers are adequately represented and protected.

Industrial consumers, particularly, MSMEs were strongly opposed to the tariff hike.

They were opposed to a steep hike in the fixed/demand charges for LT/HT consumers and peak hour charges.