CHENNAI: Despite receiving approval from TN Electricity Regulatory Commission, Tangedco may not immediately implement the scheme for people to voluntarily give up the free 100 units and other power subsidies. The scheme was envisaged to reduce the subsidy burden on the Tamil Nadu government.
Sources said the State government was not keen on introducing the scheme immediately as the power tariff hike has already drawn much criticism. A senior official said the Tamil Nadu government felt that this was not the right time to implement the scheme for the voluntary surrendering of power subsidy.
As per the new tariff regime, the first 100 units are free and the government provides a 50% (`225) subsidy for consumption between 101 and 200 units. As such, if a consumer having consumption of around 200 units comes forward to give up their subsidy, they will have to pay an additional Rs 675, another officer said.
As per TNERC’s approval, Tangedco must evolve a procedure and provide wider publicity to the scheme if it wants to introduce it. Moreover, Tangedco has been directed to furnish a progress report every quarter to TNERC.
Kathirmathiyon, secretary of Coimbatore Consumer Cause, told TNIE that they did not know how Tangedco proposed this and why TNERC approved it. The regulatory commission, he said, has no right to give such orders since giving subsidies is a policy matter.
“We are not against giving up subsidy voluntarily. But Tangedco cannot make such a decision since it is only a licensee, and granting subsidies is purely the prerogative of the government,” he opined.
100 units will be free, and the government will provide a 50% (`225) subsidy for consumption between 101 and 200 units, as per the new tariff regime