Tamil Nadu CM M K Stalin Announces Reduction in Electricity Tariffs for Apartment Dwellers
Posted on: 19/Oct/2023 8:17:30 AM
In a recent development, Tamil Nadu Chief Minister M K Stalin has unveiled a significant reduction in electricity tariffs for apartment dwellers falling under the LT 1D tariff category. This move, part of the government`s `CM on field visit` initiative, has garnered mixed responses from the community.
Under the LT 1D tariff category, the common service connection charges for small apartments with less than 10 houses, three floors, and without a lift facility will now be reduced to Rs 5.50 per unit, down from the previous Rs 8.15 per unit. As per the existing domestic common connection tariff, apartment residents had to pay energy charges of Rs 8.15 per unit and fixed charges of Rs 102 per kilowatt per month.
The LT 1D tariff category was introduced in September 2022, creating a new category specifically for small apartments. This move was met with opposition from apartment dwellers who were unhappy with the higher tariffs associated with the common service category.
The tariff order reveals that the average cost of supply for electricity stands at Rs 8.35 per unit in the 2022-23 fiscal year. Domestic consumers, benefiting from subsidies, pay an average billing rate of Rs 5.95 per unit, while the average billing rate for common service consumers is higher at Rs 8.98 per unit.
It`s important to note that the revised charges will come into effect only after formal approval from the Tamil Nadu Electricity Regulatory Commission (TNERC) and the subsequent implementation of the state government`s subsidy plan to compensate for the losses incurred by Tangedco.
Change in Energy Charges:
- Existing: Rs 8.15 per unit
- Revised: Rs 5.50 per unit
- No change in Rs 102 per kW per month fixed charges
Key Figures:
- Rs 8.35 per unit: Average cost of supply
- Rs 5.95 per unit: Average billing rate for domestic users
- Rs 8.98 per unit: Average billing rate for domestic common supply
Illustrative Impact on Bills:
- Before Reduction: If a small apartment consumes 100 units with a connected load of 1 kW under LT 1D tariff, the bill will be Rs 1,019, including fixed charges of Rs 204.
- After Reduction: Under the reduced charges, the energy bill will come down to Rs 754, still including fixed charges of Rs 204. This represents a 26% reduction or a savings of Rs 265 for 100 units.
