Tangedco’s new tariff rule irks small traders

CHENNAI: Small traders question the Tamil Nadu Generation and Distribution Corporation's double standards over the collection of commercial electricity tariffs from micro or petty retailers and tea shops attached to their residences while professionals like doctors, auditors and lawyers are allowed to work out of their residential premises and pay subsidised domestic tariff.

Small traders including petty shops, photocopiers, bakery shops and computer centres were charged commercial tariffs alongside commercial complexes, supermarkets and cinema theatres. Tangedco has proposed to increase the commercial tariff from less than 100 units consumption at Rs 6 per unit and above 100 units at Rs 9.50 per unit from Rs 5 per unit and Rs 8.05 per unit respectively.

K Saravanan, who runs a petty shop at Villivakkam, said that the government should consider bringing petty shops into domestic tariff. “We’re already facing hike in property tax and other taxes. The hike in the electricity charges will them badly,” he said.

Prof R Rajkumar, state chief secretary of TN Vanigar Sangankalin Peramaippu, said that they were planning to petition Tangedco, TNERC and the State government about it. “After COVID-19, the Union government allowed retail traders to be classified under MSME. Most have registered on the Udyam Registration Portal and classified as an MSME. So, traders should be brought under the LT industrial tariff,” he said.

S Neelakanta Pillai, founder, Citizen’s Contribution in Democracy, concurred, and added, “I understand the reason for allowing doctors to practice at home. Why was it extended to engineers, interior decorators, lawyers and auditors?”

A senior TANGEDCO official said that most petty shops would fall under the zero to 100-unit slab, which has a lower tariff of Rs 6/unit and Rs 100/kW per month as fixed charges.

“Professionals like doctors, lawyers, auditors, engineers and interior decorators were allowed to use up to 200 square feet of their house for work, as per order from Supreme Court. Earlier, it was simply mentioned as professionals and now we’ve clearly identified them,” he said.