TNERC hikes tariff marginally by 2.18%, won't impact domestic consumers

CHENNAI: Tamil Nadu Electricity Regulatory Commission has hiked the electricity tariff for all the low-tension and high-tension consumers marginally by 2.18 per cent but the domestic, huts, agriculture, handlooms and power looms consumers tariff will remain unchanged with the state government absorbing the hike through subsidy.

In its tariff order, TNERC said that though it was decided to adopt the escalation rate comparing with the April 2023 and April 2022 general consumer price index, for the revision of tariff to take effect from July 1st, 2023, as per the policy directive of the state government dated June 30, 2023, the commission decided to compare the CPI of April 2023 with August 2022.

It said that accordingly, the prevailing tariff has been escalated to the extent of such percentage comparing the Index rate prevailing in August 2022.

"However, the inflation of tariffs for the ensuing years shall be based on the formula stipulated under the tariff order issued in September 2022," it said.

Though the energy charges for the domestic consumer are hiked by Rs 0.10 to Rs 0.25 per unit for various slabs, the hike, however, would be absorbed by the state government through subsidy. With the state government subsidy, the domestic, handlooms and power loom consumers would continue to pay the existing tariff.

The huts and agriculture consumers would continue to get a free power supply. However, domestic consumers having common service connections would see the energy charges going up from Rs 8 per unit to Rs 8.15 per unit while the fixed charges increase by Rs 2 to Rs 12 per kilowatt per month.

For other categories of LT consumers, the energy charges have been hiked by a minimum of 10 paise per unit and a maximum of 25 paise per unit. The fixed charges have been hiked by a minimum of Rs 2 per kW per month to Rs 12 per kW per month. For the HT consumers, the tariff hike ranged from 15 paise per unit to 25 paise per unit while the demand charges increased by Rs 12 to Rs 562 per kVA per month.

Tariffs for electric vehicle charging stations reduced

In accordance with the Tamil Nadu Electricity Vehicle Policy 2023, the commission re-determined the tariff for the supply to EV charging facility in the tariff order in such a way as to incentivise EV usage and decrease the cost of operation.

The commission has reduced the energy charges as per the guidelines given by the union ministry of power that it should not exceed the average cost of supply and the state government's EV policy which seeks to reduce the demand charges by 75 per cent.

For the EV charging stations with LT and HT power supply, the energy charges during the solar hours of 9 am to 4 pm would be Rs 6 per unit and non-peak hours charges for 4 pm to 6 pm and 10 pm to 5 am would be Rs 7.50 per unit. During the peak hours of 6 am to 9 am and 6 pm to 10 pm, it would cost Rs 9 per unit.

The fixed charges for LT supply have been reduced by 75 per cent to 0-50 kilowatt is Rs25 per kW per month, 51-112kW is Rs 75 per kW per month and above 112 kW is Rs 138 per kW per month.

For HT supply EV stations, the demand charges would be Rs 138 per kVA per month.