TNERC hikes electricity tariff by 4.83%; third revision in 3 years

CHENNAI: For the third successive year, the Tamil Nadu Electricity Regulatory Commission has hiked tariffs for all consumer categories by 4.83 per cent from July 1.

However, there is no clarity on whether the government would absorb the hike for partially and fully subsidised consumers like domestic, huts, agricultural, handlooms and power looms consumers as was done last year.

According to TNERC’s order, the tariff has been increased by a minimum of Rs 0.20 to a maximum of Rs 0.50 per unit for different slabs of domestic consumers.

The energy charges for common service connections in multi-storey buildings would go up to Rs 8.55 from Rs 8.15 per unit while the fixed charges have gone up to Rs 107 from Rs 102 per kilowatt per month.

The Tangedco claimed that of the 2.47 crore consumers, 1 crore would not be impacted by the tariff hike. Those consuming up to 200 units would see charges going up by Rs 10 in the two-month billing cycle while those consuming up to 300 units would see a hike of Rs 30 and Rs 80 in the case of those consuming more than 500 units.

For other LT consumers, it has gone up by a minimum of 20 paise/unit and a maximum of 60 paise/ unit. The hike in fixed charges ranges from Rs 5/kW/month to Rs 27/kW/month. For HT consumers, the tariff hike ranges from 35 paise/unit to 60 paise/unit while the demand charges increased by Rs 27/kVA/month.

Sources said the government would absorb Rs 660 crore of additional burden on various consumers this year, though the exact breakup of the subsidy is not available.

KE Raghunathan, national chairman of the Association of Indian Entrepreneurs, said that though the tariff revision was expected, it could have been avoided considering the protest by MSMEs. He noted that the State government has not found a solution to reducing the fixed charges for industrial consumers.

“Though the hike is Rs 0.35 per unit, it will not be taken lightly by the consumers,” he cautioned.