Power shock: Tangedco announces tariff hike after 8 yrs

CHENNAI: Tamil Nadu Generation and Distribution Corporation (Tangedco) has hiked the electricity tariff after 8 years with the consumers using 200 to 500 units facing most of the burnt than those consuming above 500 units.

Addressing a press conference here, Electricity Minister V Senthilbalaji said that they have filed the tariff revision petition with the Tamil Nadu Electricity Regulatory Commission. He said that they have decided to continue the free supply of the first 100 units for all the domestic consumers and the free power supply for the hut consumers. The consumers were also given an option of voluntarily giving up subsidy for the first free 100 units, he said.

As per the tariff hike breakup, the consumers using between 200 and 500 units will be facing a hike of 27 per cent to 52 per cent while those using 600 and 900 units will be facing a hike of 12 per cent to 25 per cent.

The steepest hike was for the consumer using 500 units with 52 per cent as their electricity charges would go up from Rs 1130 to Rs 1725. The lowest hike was for those using 600 units with 12 per cent as their charges went up from Rs 2,440 to Rs 2,750.

Tangedco sources said that the tariff hike would come into effect in two months' time after the TNERC passes its order. Normally the tariff would be hiked from April 1 and in some states with mid-year of September 1.

Senthilbalaji said that there would be no increase for one crore consumers out of the 2.37 crore domestic and hut consumers. “As per the DMK poll promise, fixed charges of Rs 20 to Rs 50 bimonthly on domestic consumers have been withdrawn for all the domestic and hut consumers, ” he said.

Electricity Minister said that to avoid duplication of tariff subsidy, the separate tariff of LT tariff I-D is to be introduced for command supply for lighting or lift or water supply. “The gymnasium, swimming pools, sewage treatment plant, water treatment plant and fire hydrant system in the residential complexes are brought under the common supply tariff instead of commercial, ” he said, adding that an additional service connection other than rented or leased out will be charged Rs 225 per month.

Blaming the Union government for the tariff hike, he said that the Ministry of Power has made a mandatory condition of power sector reforms with tariff revision for the additional borrowing of 0.5 per cent GSDP for the state. “The tariff revision is a pre-condition for the release of funds under the Distribution System Strengthening (RDSS) scheme and if the tariff is not revised, grants to the tune of Rs 10,793 Cr will not be released to Tangedco and the scheme will not take off, ” he said.

Tariff hike for other consumers

1. LT Cottage and tiny industries tariff hiked by Rs 0.50 per unit

2. LT private educational institution hiked by Rs 1 per unit

3. LT industries tariff increased by Rs 1.15 per unit

4. HT industry consumer faces hike by Rs 0.40 per unit

5. HT commercial consumers hiked by Rs 0.50 per unit

Accordingly, the proposed increase in tariff has been released and is as follows:

• Upto 200 units for 2 months, the tariff has been increased to Rs 27.50.

• Upto 300 units for 2 months, an increase from the existing tariff goes up to Rs 72.50.

• Upto 400 units for 2 months, an increase from the existing tariff goes up to Rs 147.50.

• Upto 500 units for 2 months, an increase from the existing tariff goes up to Rs 298.50.

• Upto 600 units for 2 months, an increase from the existing tariff goes up to Rs 155.

• Upto 700 units for 2 months, an increase goes up to Rs 275.

• Upto 800 units for 2 months, an increased up to Rs 395 has been announced.