Tamil Nadu: Tariff hike warranted as loss is at Rs 1.13 lakh crore

Tangedco pointed out that tariff was being revised after eight years.

Published: 11th September 2022 05:19 AM  |   Last Updated: 11th September 2022 05:19 AM   |  A+A-

For representational purposes.

By Express News Service

CHENNAI:  Defending its decision to hike power tariff, the Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco), in a statement, said the hike became necessary because of financial losses (Rs 1,13,266 crore as on March 31, 2021) and outstanding loan of Rs 1,59,823 crore.

“The Union power ministry has made tariff revision a precondition for releasing central funds. RBI and other central financial institutions too have made yearly tariff revision a precondition for sanctioning loans. Entities such as CERC and APTEL have made strong remarks about Tangedco not revising its tariff periodically,” the statement said. 

Tangedco also pointed out that tariff was being revised after eight years. On July 18, 2022, Tangedco had submitted its tariff revision petition for multi-year tariff control term (2022-23 to 2026-27) and petition for miscellaneous charge for the same period to the Tamil Nadu Electricity Regulatory Commission (TNERC). On July 19, 2022, the petitions were accepted by the TNERC.

There is no increase for 1 crore out of 2.37 crore domestic consumers and those living in huts (42.19%). For 63.35 lakh domestic consumers (26.73%) using up to 200 units bimonthly, the tariff hike will be Rs 27.50 per month and for 36.25 lakh consumers (15.30%) using up to 300 units bimonthly, the hike will be Rs 72.50 per month. For 18.82 lakh consumers (7.94%) using up to 400 units bimonthly, tariff hike is Rs 147.50 per month and for 10.56 lakh consumers (4.46%) using up to 500 units bimonthly,  the tariff hike will be Rs 297.50 per month, Tangedco said. 

Tangedco also said libraries functioning in rural and village areas are now being charged Rs 5.75 per unit and Rs 60 per month as fixed charge. To encourage and improve reading habit among people, tariff for libraries running on non-commercial basis has been approved at domestic rate to reduce their current consumption charge by up to 30%.

Industrial assns urge  CM to withdraw revision
Coimbatore: Representatives of TACT urged CM Stalin to withdraw the power tariff hike.  J James, president of TACT, said, “We have complained to electricity minister Senthil Balaji about the decision, stating that the decision will distress thousands of industries.” Coimbatore and Tiruppur Districts’ Micro and Cottage Entrepreneurs Association president C Sivakumar said, “We will not accept the hike.”

PMK, AMMK, CPM condemn move
Chennai: PMK, CPM and AMMK have condemned the State government for increasing the power tariff. The parties urged the TNEB to roll back the increase in tariff and said it is not an appropriate time to increase the price as people haven’t recovered from the COVID impact. In a series of tweets, PMK president Dr Anbumani Ramadoss expressed his shock over the announcement.


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Rs 50 per month increased for 53% (19.28 lakh) of the commercial consumers

70 paise per unit hike for power loom consumers and up to 750 units free supply continued 


Green tariff introduced for supply of renewable energy power with an RE certificate to promote renewable energy at a lower premium rate of 10%

Professionals like doctors, engineers, interior decorators, auditors, lawyers can use up to 200 sq feet of their house for their professional work

Data centers brought under industrial tariff

India Matters


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