CHENNAI: In what may come as a relief to consumers across Tamil Nadu, Electricity Minister C T R Nirmalkumar on Thursday announced that there would be no increase in power tariff this year, despite provisions enabling annual revision under existing tariff mechanism.
Speaking after releasing the white paper on the state’s power sector in Chennai, the minister said the previous DMK government had introduced a multi-year tariff revision system in 2022, under which electricity charges are revised every July based on the Consumer Price Index (CPI).
“According to the prescribed formula, electricity tariff may be increased by 3.57% this year. However, the TVK government has decided not to implement the proposed hike, keeping in mind the welfare of consumers,” he said.
Nirmalkumar said the decision has been taken despite the financial difficulties faced by the state-owned power utilities. The move reflects the government’s commitment to protecting consumers from additional financial burden, he added.
The minister pointed out that during the previous regime, tariff hikes were accompanied by subsidies provided mainly for domestic consumers. “The TVK government has decided not to increase tariffs. Therefore, there is no immediate need to provide additional subsidy support to offset a tariff revision,” he said.
Last year, the Tamil Nadu Electricity Regulatory Commission (TNERC) approved a 3.16% tariff revision linked to the Consumer Price Index (CPI). The then DMK government absorbed much of the impact for subsidised consumer categories, including domestic consumers and other beneficiaries of state-supported tariff concessions, through additional subsidy support to the power utility rather than passing on the full increase to them.
The minister noted that around one lakh smart meters had already been installed in Chennai’s T Nagar area using 5G-based communication technology. “If there is no connectivity or if the technology changes after a few years, we need to assess how the system will function,” he said.
According to Nirmalkumar, Tamil Nadu would require nearly 3.5 crore smart meters, and the project could cost around Rs 30,000 crore while taking four to five years to complete. He said the government was also examining alternative options, including strengthening the existing assessment system through additional manpower.
Meanwhile, the minister said the government had proposed power sector improvement works worth Rs 49,532.83 crore during 2026-27. The projects include recruitment of personnel, appointment of gangmen, procurement of equipment, infrastructure development and renovation of ageing substations.
He said the schemes would be implemented through borrowings, while assuring that the government would maintain transparency in the execution of all projects.