Defer revision of electricity tariff by a year, say industries in Tamil Nadu

The Hindu

14-06-2025

A drop in industrial power consumption, export of manufactured goods, and MSME operations in the first three months of 2025 compared with October-December 2024 coupled with an increase in the energy cost have hit hard the Micro, Small and Medium-scale Enterprises (MSMEs). In such a scenario, any further hike in electricity tariff will be a blow to the manufacturing sector in the State, said Pradeep Natarajan, president of the Tamil Nadu Electricity Consumers' Association.
Mr. Natarajan appealed to the Tamil Nadu government to not revise the electricity tariff from July 1 or to extend financial support to the manufacturing sector.
The association cited multiple sources to point out that industrial power consumption in January-March 2025 was 8 % less than October-December 2024; MSME operations declined 17.5 %, manufactured goods exports fell 23 % while total energy cost to the input cost went up 29 %.
With ongoing conflict in the west Asian countries disrupting energy markets, trade routes, and financial sentiment, industries in Tamil Nadu—particularly MSMEs and export-driven manufacturers—are bearing the brunt.
'This is not the time to increase power tariffs. Our industries are already struggling with falling demand, rising energy input costs, and mounting financial stress. A new tariff hike will only deepen the crisis,' he said in a press release.
The tariff revision should be deferred for a year and special relief measures should be announced for energy-intensive and job-generating sectors, he added.
The association said deferring the tariff hike will protect industrial continuity, safeguard jobs, and ensure sustained power demand for the electricity department.
'The industrial community remains hopeful that the government and the Tangedco will respond constructively to ensure Tamil Nadu retains its industrial competitiveness and employment momentum,' the association said in a press release.