5 days ago
Tamil Nadu industries seek freeze on power tariff for a year
Industry associations in Coimbatore have appealed to the Tamil Nadu government and the Tamil Nadu Power Distribution Corporation not to revise the electricity charges from July.
Tamil Nadu Electricity Consumers Association president Pradeep Natarajan said the average power consumption of industries, operation of MSMEs, and export orders for the manufacturing sector in Tamil Nadu have all seen a year-on-year decline.
With the ongoing conflict in 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. The Dearness Allowance/Consumer Price Index points during 2024-2025 have dropped.
Hence, the Multi-Year Tariff (MYT) revision scheduled for July 2025 should be postponed, said Mr. Natarajan.
'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 Association sought a minimum one-year deferment of the multi-year tariff revision, status quo on current tariff levels until economic conditions stabilise, and special relief measures for energy-intensive and job-generating sectors.
The Tamil Nadu Association of Cottage and Tiny Enterprises has urged Chief Minister M.K. Stalin to stall the proposed tariff revision with effect from July 1. Association president J. James pointed out that the fixed charges for MSMEs went up 430 % in 2022, and the Tamil Nadu Power Distribution Corporation was not reclassifying the tariff for micro units to 3 A (1) from 3 B despite orders from the Tamil Nadu Electricity Regulatory Commission.
Further 6 % tariff revision will lead to closure of MSMEs and job losses, he said.
