Electricity tariff hike: MSMEs unhappy, demand to reduce fixed charges

CHENNAI: The Micro, Small and Medium Enterprises (MSMEs) are unhappy over the electricity tariff hike for the third time in as many years amid their long pending demand for a reduction of fixed charges.

K Baskaran, secretary, Kakkalur Industrial Estate Manufacturers Association, said that the power tariff hike has come at a time when the MSMEs sector is struggling to stay in business. “This hike will lead to a situation like during the Covid-19 leading to manufacturing units remaining shut and workers losing their jobs. Many small-scale units may wound up,” he said.

K Mariappan, the co-chair of Assocham India, said that the main demand of the MSMEs was to reduce the fixed charges under the LT 3B industrial connection which was hiked by as much as eight times. “Before 2021, the LT 3B connection had a fixed charge of Rs 35 per kilowatt per month. The connected load of up to 50 kW has been hiked to 81/kW/month and Rs 160/kW/month for 51-112 kW. Above 112 kW, it is Rs 569/kW/month. We are demanding the state to reduce the fixed charges to Rs 50 for up to 50 kW, Rs 75 for 51-112 kW and Rs 350 for above 112 kW. But it was not yet considered,” he said.

Tamil Nadu Small and Tiny Industries Association (TANSTIA) president CK Mohan said that the state government has addressed some of their demands, including peak hour charges, changing tariff from LT 3B to LT 3A for industries less than 20 kW load and reduction of network charges for solar. Recalling the Chief Minister’s assurance to resolve the issue after the Lok Sabha polls, he sought the CM’s intervention on the issue.