CHENNAI: The Tamil Nadu Generation and Distribution Corporation (Tangedco) is likely to increase the power tariff by 4.83% from July 1 for domestic, commercial, and industrial users as per the Consumer Price Index (CPI) inflation-linked tariff revision approved by the Tamil Nadu Electricity Regulatory Commission (TNERC) in 2022. “The per-unit charge of power, which currently stands at Rs 4.60 in the state, will go up to Rs 4.83 after the tariff hike,” an official said.
Last year, on July 1, the tariff was increased by 2.18% as per the CPI-linked revision but the state government absorbed the tariff hike for domestic consumers as subsidy. But no such proposal to protect domestic consumers from tariff hike has been announced by the state government so far this year. This will be the third tariff hike after the DMK government assumed office in 2021.
In September 2022, TNERC had approved a methodology for a CPI index-linked multiyear tariff revision subject to a cap of 6% for financial years 2023-24 to 2026-27. The tariff revision will take effect from July 1 every year till 2027.
Data from the Ministry of Statistics and Programme Implementation show that the country’s retail inflation stood at 4.83% (provisional) in April this year. The power tariff hike will be based on this. A senior Tangedco official told TNIE,
“There is no need to file a fresh petition to the Tamil Nadu Electricity Regulatory Commission (TNERC) for the tariff revision since the commission has already approved the multiyear tariff revision in 2022.” By end of this month, TNERC will issue orders regarding the revision that will take effect on July 1, the official added.
Tangedco revenue may go up by Rs 25k crore
Highlighting the change in revenue after the tariff hike in 2022, another official said, “The power utility’s total income stood at Rs 56,994.48 crore in 2021-22. Following the tariff revision, the total revenue increased to Rs 80,857.77 crore in 2022-23.
For the previous financial year 2023-24, the utility is yet to finalise the accounts. However, we expect an additional Rs 25,000 crore in revenue every year through the tariff revision.”
Homes too may’ve to pay more
Last year, the state absorbed 2.18% tariff hike for domestic consumers as subsidy, but no such proposal has been announced so far this year. This will be the third tariff hike in TN after the DMK govt assumed charge in 2021