Fixed charges will shut down our units: MSMEs

CHENNAI: The Micro, Small and Medium Enterprises (MSMEs) in TN are unhappy over TNERC’s steep tariff hike for the industries sector.

TN Association of Cottage and Micro Enterprises Coimbatore president J James said that at a time when the industrial sector is in severe crisis, the tariff has been hiked by nearly 100% under various categories. “The tariff has been hiked despite a warning that industrial development would suffer with such a steep hike. In addition to increasing energy charges, the fixed charges have been raised from Rs 35/month to Rs 75/kilowatt for 0-50 kW. Consumers would be charged 25% for consuming during peak hours,” he said.

KS Anbuselvam, president, Perungudi Industrial Estate Manufacturers Association, said that many MSME units would be forced to close permanently due to the manifold increase in fixed charges. “A hike in is acceptable considering it’s being done after 8 years. But the hike of fixed charges would lead to the closure of MSME units,” he lamented. “Many MSMEs work on a seasonal basis. But as per new tariff, we have to pay fixed charges even if we’re not consuming power. The new peak hour charges will increase the tariff burden. We demand scrapping of the fixed charges hike and peak hour charges.”

Tangedco claimed that it had reduced the fixed charges and demand charges for the LT industries and commercial and HT industry and commercial sectors. TNERC has fixed energy charges at Rs 7.50/unit for LT industries while the fixed charges for 0-50 kW are Rs 75/kW per month (proposed Rs 100/kW/month), above 50-112 kW is Rs 150/kW per month (Rs 325/kW per month) and above 112 kW (CT Service) is Rs 550/kW per month (Rs 600/kW per month).