CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved a provisional subsidy of Rs 1,545.14 crore towards implementation of the state government’s scheme that will provide 200 units of free electricity every two months to domestic consumers whose bimonthly consumption is up to 500 units.
As per the order accessed by TNIE, the subsidy has been approved for the period from May 10, 2026, to March 31, 2027, covering 326 days. Consumers whose electricity consumption exceeds 500 units every two months will continue under the existing tariff structure. They, however, can continue to receive the present benefit of 100 units of free electricity every two months.
The government has also issued a commitment letter assuring compensation to Tamil Nadu Power Distribution Corporation Limited (TNPDCL) for the revenue loss arising out of the scheme.
The TNPDCL had informed the commission that the government had allocated Rs 1,730 crore as additional tariff subsidy for the implementation of the scheme.
Since the policy came into effect from May 10, 2026, the utility worked out the provisional subsidy requirement at Rs 1,545.14 crore till March 31, 2027, which has now been approved by the TNERC.
The commission clarified that the subsidy approved now is only provisional. The final amount will be reconciled later based on the actual power consumption data submitted by TNPDCL to the commission.
