Tamil Nadu Hikes Power Tariff by 15 % w.e.f Friday Dec 12,2014

 

The Tamil Nadu Electricity Regulatory Commission (TNERC) on Thursday Dec 11,2014 decided to effect 15 % increase for all categories of consumers.

Of the three members in TNERC, two including chairman S Akshaykumar favoured the hike, but one member, S Nagalswamy, expressed dissent saying the decision should be postponed till the high court decided on petitions challenging the hike  

The revised tariff comes into effect from Friday (December 12) and will net Rs 5,225-crore revenue annually including the government’s subsidy to the cash-strapped Tangedco.

 For 10 lakh consumers, mostly in urban areas and especially Chennai, with consumption of above 500 units on a bi-monthly basis, the minimum power charge would be Rs. 3.50 per unit and the maximum Rs. 6.60 per unit. 

As per a conservative estimate, the power consumption by the high-end users works out to around 5,000 million units annually, roughly 25 % of the total consumption by the domestic consumers. 

As of now, they account for 31 % of the total annual revenue of Rs. 7,350 crore from them. 

Tamil Nadu Chief Minister O. Panneerselvam announced that the burden of tariff hike would not be passed on to most of domestic consumers.

Out of 1.71 crore domestic consumers, 1.61 crore accounting for 94 % of the category would not have to pay more even after the tariff revision by the TNERC. 

The free power supply would continue for agricultural connections and huts besides sections of handloom and powerloom units

On the financial front, the government’s subsidy would be Rs.1,310 crore. The electricity charges paid by various types of consumers would be Rs. 3,915 crore.