Tamil Nadu increases power tariff by 4.83% from July 1
CHENNAI: In a move that will impact consumers, the power tariff has been increased by 4.83%, effective from July 1. This applies to both usage and fixed charges. The TNERC issued a suo motu order in this regard. TNIE had reported first on June 14 that the power tariff will be revised by 4.83 %.
This marks the third upward revision of electricity charges in consecutive years. Tangedco had previously raised rates by 52.6% on September 10, 2022, and by 2.18% on July 1, 2023.
A senior Tangedco official told TNIE, “The state fully absorbed the 2.18% hike last year and provided a subsidy. This year, we have not received any subsidy.”
The bi-monthly electricity charges will consequently go up from Rs 4.6 to Rs 4.8 per unit for 0 to 400 unit consumption slab.
Domestic consumers will see their bills go up as follows: those using up to 200 units will pay an extra Rs 5 per month, while those using 300 units will see an increase of Rs 15 per month.
The TNERC had earlier approved the automatic tariff revision method, linking it to the Consumer Price Inflation index and capping it at a maximum of 6%, whichever is lower, for the financial years 2023-24 to 2026-27. This revision will take effect on July 1 each year until 2027.
Data from the Ministry of Statistics and Programme Implementation shows that retail inflation in the country stood at 4.83% in April. Consequently, the tariff has been hiked by 4.83 %. Energy charges for LT consumers in other categories have been raised by 20 to 60 paise per unit. Fixed charges now range from Rs 5 to Rs 27 per kW per month. HT consumers will see a tariff increase of 35 to 60 paise per unit and demand charges raised by Rs 27 per kVA per month.
Strongly condemning the DMK government, AIADMK general secretary Edappadi K Palaniswami said Chief Minister MK Stalin has gifted the tariff hike to people after the completion of Lok Sabha election and Vikravandi by-poll. PMK president Anbumani Ramadoss said the state would net an additional revenue of Rs 6,000 crore through this. “At a time when people are affected by the rise in prices of commodities, hiking power tariff is condemnable,” he said. AMMK leader TTV Dhinakaran also condemned the hike.
(With inputs from T Muruganandham @ Chennai)