MSMEs want power tariff rolled back, say it will cripple sector

CHENNAI: The Micro, Small and Medium Enterprises (MSME) sector has expressed its unhappiness over the recent electricity tariff hike, second one in a short time span of nine months.

Entrepreneurs accused it as rubbing salt on wound as they term the last year’s tariff hike as a steep one. Tamil Nadu Electricity Regulatory Commission has increased the electricity tariff for HT and LT consumers by 2.18 percent from July 1. Tamil Nadu Association of Cottage and Micro Enterprises Coimbatore District President J. James said that the power tariff has been increased again at a time when the MSMEs sector was seeking a roll back of last year’s tariff hike.

“We are not against the hike in the energy charges but the fixed charges and peak hour charges should be rolled back,” he said. Before last year’s tariff hike, under the LT industries tariff, the manufacturing units were paying fixed charges of Rs 35 per kilowatt, he said “Now the fixed charges have been hiked steeply. The hike in fixed charges is nearly over 250 percent. It is amounting to crippling the MSME sector,” he said, adding that hence they have been seeking a reduction of fixed charges without any slabs.

The entrepreneur also said that the peak hour charges are being collected from the LT industries even without installing the Time of the Day (ToD) meter readings required. “The government has reduced peak hour charges from 25 percent to 15 percent. But we are seeking a complete roll back,” he said. Entrepreneurs are urging the state government to safeguard the MSMEs sector and workforce by yielding to their demands