'Postpone EB Tariff Hike Till April'

Representatives of industry bodies write to State government, seeking time to fine-tune their operations

Published: 29th September 2014 06:04 AM  |   Last Updated: 29th September 2014 06:04 AM   |  A+A-

CHENNAI: Representatives of several industry bodies, in a letter addressed to the Tamil Nadu government on Saturday, requested postponement of the proposed tariff hike by the Tamil Nadu Electricity Regulatory Commission (TNERC) to the next financial year.

The letter stated that the proposed hike will result in an average billing-rate rise of Rs 2 per KWHr, which represents more than a 30 per cent rise in cost to industries. The demand charges are slated to increase from Rs 300 to Rs 350 per KVA which represents a 17 per cent increase.

In addition, the industries have to comply with other restrictions and control measures that have been imposed.The postponement of the rise in tariff to April 2015 will allow industries sufficient time to fine-tune their operations in light of the increase in tariffs.

The letter claimed that most industries particularly the Micro Small and Medium Enterprises (MSME) are continuing to be affected by the economic slowdown in the state. Also, most of the industrial consumers of electricity have long-term price contracts with their customers making it difficult to revise their prices. As such, exports in particular, will be negatively affected, the letter said.

The letter also urged the state government to consider compensating the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) and Tamil Nadu Transmission Corporation Limited (TANTRASCO) for the increase in tariff.

Several industrial bodies including the Tamil Nadu Electricity Consumers Association, the Indian Chamber of Commerce and Industry, Coimbatore, Southern India Mills’ Association, Confederation of Indian Industry, Coimbatore, South India Spinners Association, Southern India Engineering Manufacturer’s Association and Institute of Indian Foundrymen were represented in the letter to the government.


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