Tamil Nadu govt's electricity subsidy burden goes up by Rs 519.25 crore post tariff hike
Out of the Rs 519 crore additional subsidy, the biggest chunk goes to the domestic consumers with Rs 227.96 crore followed by agricultural consumers under the normal category getting Rs 206.78 crore.
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CHENNAI: The state’s power subsidy burden has increased by Rs 519.25 crore to Rs 15,851.83 crore for 2024-25 after the Tamil Nadu Electricity Regulatory Commission (TNERC) hiked electricity by 4.83 per cent from July 1.
Out of the Rs 519 crore additional subsidy, the biggest chunk goes to the domestic consumers with Rs 227.96 crore followed by agricultural consumers under the normal category getting Rs 206.78 crore.
Irrespective of the consumption pattern, all domestic consumers get the first 100 units free and those who consume less than 500 units get a subsidy of Rs 2.45 per unit for consumption between 101 to 200 units. The total subsidy for domestic consumers for 2024-25 has gone up to Rs 7,452.91 crore. The state government would incur a subsidy of Rs 7,384.34 crore for the fully subsidised agricultural and hut consumers.
The state paid a tariff subsidy of Rs 14,976.42 crore for 2023-24 apart from the loss funding grant of Rs 17,127.18 crore. In 2022-23, the subsidy stood at Rs 12,069.97 crore.
In an order, TNERC has directed the state government to provide the subsidy in advance to compensate for the shortfall in revenue to Tangedco consequent to the extension of free supply and reduction of the tariff as per the policy direction.
