TNERC Implements 4.83% Electricity Tariff Hike; Government Subsidy Uncertain!
Posted on: 16/Jul/2024 9:55:02 AM
The Tamil Nadu Electricity Regulatory Commission (TNERC) has raised electricity tariffs by 4.83% for all consumer categories from July 1. However, it`s unclear if the government will absorb the hike for subsidized consumers, such as domestic, huts, agricultural, handlooms, and power loom users.
TNERC`s order details a tariff increase ranging from Rs 0.20 to Rs 0.50 per unit for domestic consumers. In multi-storey buildings, energy charges will rise to Rs 8.55 from Rs 8.15 per unit, with fixed charges increasing to Rs 107 from Rs 102 per kilowatt per month.
Tangedco stated that out of 2.47 crore consumers, 1 crore will not be affected by the hike. Those consuming up to 200 units will see a Rs 10 increase in their two-month billing cycle, up to 300 units will see a Rs 30 increase, and more than 500 units will see an Rs 80 increase.
For other LT consumers, the increase ranges from 20 to 60 paise per unit, with fixed charges rising from Rs 5 to Rs 27 per kilowatt per month. HT consumers face a hike of 35 to 60 paise per unit, and demand charges have risen by Rs 27 per kVA per month.
Sources indicated that the government would cover Rs 660 crore of the additional burden on various consumers this year, though subsidy details are not provided.
KE Raghunathan, national chairman of the Association of Indian Entrepreneurs, said the hike, though expected, could have been avoided given MSME protests. He criticized the lack of a solution for reducing industrial consumers` fixed charges and cautioned that the Rs 0.35 per unit increase would not be well-received by consumers.
