TECA says power tariff hike will increase prices of goods

CHENNAI: Tamil Nadu Electricity Consumers Association (TECA), which is shocked by the recent hike in power charges, warned the State government that such a huge rise in various electricity charges will increase the cost of production and raise the price of goods apart from affecting the growth of the industries.

S Ashok, president of the association, expressed that the revised tariff is a big shock for consumers. "Industries in Tamil Nadu will be severely affected due to such a high increase. We feel that requests made through our comments have not been considered. For HT Consumers a steep increase in MD Charges has been announced from Rs 350/kVA per month to Rs 550/ kVA per month which is a 60 per cent increase," he said in a statement.

He added that the peak hours have been increased from 6 hours to 8 hours (33 per cent increase) and the peak hour charges have been increased from 20 per cent to 25 per cent adding to a huge increase of 53 per cent in peak hours alone. Night hours rebate continues at meagre 5 per cent and 7-hours period.

Pointing out that the country has obligations to reduce Green House Gases and Carbon emissions, Ashok said that increasing wheeling charges, transmission charges and scheduling charges for wind and solar energy will discourage further investment in the green energy sector.

For LT Consumers, the Fixed Charges are made into two slabs such as Rs 75/ kw per month (0-50 KW), and Rs 150/ kW per month (Above 50 KW-112 KW). The increase in Fixed Cost is more than twice and four times respectively from the existing cost. For the first time, LT Consumers in the following categories are charged with Peak Hours (8 Hours) which are charged 25 per cent more than the normal hour charges. Presently, all the LT connections are not fitted with ToD meters and hence the commission has ordered for collection of Peak Hour Charges by a flat 20 per cent of total consumption until the installation of ToD meters. Hence, a consumer who intends to avoid peak hours to save his cost will also be charged for Peak Hour Charges until the installation of ToD Meters, Ashok pointed out.