Tamil Nadu Government: Subsidy for electricity bills will be credited to bank accounts
Posted on: 14/Apr/2017 12:42:58 PM
The Tamil Nadu State Government has decided to deposit the subsidy given for electricity bill payment to be credited to the bank savings account of the consumer paying the bill. This proposal is similar to the current practice of subsidy paid for buying new LPG cooking gas cylinders when the whole payment is made by the consumer and later, the central government pays the subsidy by crediting in the saving bank account of the respective consumer.
There are 1.92 Crores of electricity connections in the state. Out of this, 80 Lakh electricity connections are in Chennai Metro.
TNEB (Tamil Nadu Electricity Board) offers 2 kinds of subsidies to electricity consumers.
Electricity is given free for the farmers and hut dwellers. They are given 2 kinds of subsidies.
When the rates were increased during the year 2014, it was announced tha there would be no changes in the rate for the customers who consume less than 500 units.
When AIADMK was voted to form the government last time, the party promised that the 1st 100 units of power consumption would be free.
The state government of Tamil Nadu has devised new plans to regularise the present subsidies on electricity bills and also to lessen the financial burden. This new system is devised as per the smart city plan. As per this, the subsidy given to the consumers would be directly credited to the respective saving bank accounts. This proposal is similar to the current practice of subsidy paid for buying new LPG cooking gas cylinders when the whole payment is made by the consumer and later, the central government pays the subsidy by crediting in the saving bank account of the respective consumer.
The recommendation for this proposal will be soon made by TANGEDCO to the Tamil Nadu Electricity Regulatory Board. Once approval is granted, the system of subsidy being credited to the consumer savings bank accounts will commence.
A senior official from TANGEDCO explained that this new system of subsidy payment to consumers will be implemented first in Chennai Metro. Later, it will be expanded to other areas.
He explained that the savings bank account particulars of the consumers should now be lined to the EB account and consumption/payment records. Only after this is completed, the proposed system can be implemented.
Once the system is implemented, the consumers will need to pay the full current bill. Later, they will get the subsidy credited to their saving bank accounts.
It may be noted that this plan would enhance the present revenue conditions of TANGEDCO.
