Power tariff may increase by 3.16% from July
Chennai: Power tariff in the state is likely to increase by 3.16% for all categories of electricity consumers, including households, in line with the recently released consumer price index (CPI).
It will be effective from July 1.
This will be the fourth consecutive annual revision of electricity tariffs in the state. The
Tamil Nadu Electricity Regulatory Commission
(TNERC) has been revising suo motu the power tariffs every year since 2022 based on the latest consumer price index as part of the multi-year tariff formula for five years, as decided in 2022.
Domestic consumers who were paying 1,000 as power bills on average last year will pay 31.6 extra. Similarly, power consumption charges and fixed charges for common supply services in apartments and multi-tenement buildings will also increase by 3.16%.
The tariff revision will also apply to high-tension consumers such as industries and other low-tension consumers. Even though the tariff revision has been capped at 6%, the tariff was increased by 2.18% in 2023 and 4.83% in 2024.
In 2023, the entire hike for domestic and a few other categories was absorbed by the state govt, and the power utility was compensated by way of subsidy. However, in 2024, the state govt proposed to release an additional subsidy in proportion to the 4.83% hike to domestic consumers, by which the domestic consumers were partially relieved of the burden of the hike last year.
Sources in both TNERC and TNPDCL played down the annual tariff revision proposal, saying there is still time to decide on the tariff revision. The state govt is expected to formally intimate the discom as well as the regulatory body of its plans to either fully or partially subsidise the hike in the coming weeks.
It may be noted that the electricity tariffs were revised last year on July 11, effective from July 1, after the Vikravandi bypoll for the legislative assembly seat was completed.
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