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Home News Power Sector News Power tariff hiked in Tamil Nadu to offset 20% of TNEB Losses

Power tariff hiked in Tamil Nadu to offset 20% of TNEB Losses

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TNEBThe Tamil Nadu Electricity Regulatory Commission(TNERC) announced a new power tariff order, with effect from August 1. Households consuming more than 600 units will, hereafter, have to pay Re.1 additionally per unit. According to S. Kabilan, TNERC Chairperson, the change would affect only about three per cent of domestic consumers, numbering 5.15 lakhs. Totally, there are about 1.5 crore domestic consumers.The increase in the power tariff has evoked mixed reactions from various sections. While some domestic consumers support it, others oppose it vehemently. Theatre owners and representatives of small-scale industries have come out strongly against it.

Till now, domestic consumers with consumption of more than 600 units have been paying Rs. 3.05 per additional unit. Hereafter, the charge is Rs. 4.05 per unit. However, the Commission has fixed Rs. 5.75 per unit, which does not include the component of government subsidy of Rs. 1.70 per unit.

In respect of other slabs for the domestic consumers, there is no change in tariff. The free power supply scheme for hut connections (approximately 13 lakhs) and agricultural connections (19.8 lakhs) has been left untouched. Also, the scheme for powerlooms (1.3 lakhs) and handlooms (1.53 lakhs) has not been disturbed. In the case of powerlooms, there is no charge up to 500 units bimonthly and in the case of handlooms, up to 100 units bimonthly. Besides, the concessional rate for places of worship remains intact. Though the TNERC has fixed Rs. 3 per unit irrespective of slabs, places of worship need to pay Rs. 1.50 up to 120 units bimonthly.

The Commission has allowed a per unit hike of 30 paise for industries of low tension (LT) for consumption of more than 1,500 units and 50 paise for industrial units of high tension (HT) category. Cottage and tiny industries, consuming over 1,500 units bimonthly, have to pay 40 paise more per unit. HT commercial establishments will have to pay 80 paise per unit and LT commercial establishments [for consumption of over 200 units] 70 paise per unit additionally.

In the case of private educational establishments, HT category consumers will face an increase of Re. 1 per unit and those under LT Rs. 1.10 per unit. As for government educational institutions and those receiving government aid, the corresponding rates of hike are 50 paise and 40 paise. The Commission has given a tariff reduction of Re. 1 per unit for LT commercial establishments with consumption of less than 100 units bi-monthly. No hike has been made in the slab for 101-200 units.

The first public hearing, in Chennai, saw stiff opposition to the proposal. Most of the participants wanted the TNEB to first tackle the transmission and distribution losses. None was willing to agree to a hike.

Now, four months after the public hearings, the TNERC has announced an increase in tariff for TNEB consumers. Domestic consumers who use more than 600 units bi-monthly have to shell out Re 1 for every additional unit consumed. Others like commercial complexes, educational institutions, theatres and industries have also been subjected to tariff hike ranging between 30 paise and Rs 1.10.



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