Power hike by 6 percent next year likely
Posted on: 21/Jun/2017 12:40:34 PM
The financial turnaround of the Tamil Nadu Generation and Distribution Corporation is high that there will not be any tariff hike soon now. There may be a 6 percent hike in 2018-19, according to the tripartite agreement made between TANGEDGO and the Union Government in January under the Ujwal DISCOM Assurance Yojana.
TANGEDCO officials state that over the years there has been almost Rs 25,000 crore loss incurred. The Tamil Nadu Electricity Regulatory Commission has declared the regulatory assets. It may also be said that the losses incurred are recovered out of the consumers. There is Rs 2000 crore surplus in this year. This will be set against the losses and it will take almost 10 years for such kind of yearly surpluses to fade away the loses accumulated. Hence, a hike is mandatory next year.
