Latest news with #TNERC
The Hindu
3 days ago
- Business
- The Hindu
CODISSIA opposes the proposed hike in power tariff from July 1
The Coimbatore District Small Industries Association has urged the Tamil Nadu government and the Tamil Nadu Electricity Regulatory Commission (TNERC) to not implement the proposed increase in power tariff for industries from July 1. The Association president, M. Karthikeyan, said in a press release that the hike, if implemented, will impact the sustainability of the Micro, Small and Medium-scale Enterprises (MSMEs). The industries are currently operating just 50% to 70% capacity due to high cost of raw material costs, increase in operational costs both in domestic and global markets, shortage of manpower, recent uncertainties such as the US import tariff, the geo political situation and war conflicts A further rise in power tariff could lead to additional financial stress, reduction in industrial output, job losses and even closure of industries. The government should reconsider the multi-year tariff revision and not implement any hike in electricity charges for the MSMEs, he said.
New Indian Express
21-05-2025
- Business
- New Indian Express
Domestic users won't have to pay higher power tariff: Tamil Nadu minister SS Sivasankar
CHENNAI: Electricity Minister SS Sivasankar on Tuesday said Chief Minister MK Stalin has advised that the power tariff of household consumers is to be maintained at the current rate when TNERC issues an order revising the tariff. He further added the CM has asked for the continuation of all free and subsidy schemes that are in place at the moment. This would mean that the state government would absorb the tariff hike for household consumers, which is likely to increase the tariff subsidy provided by the state government to the financially ailing Tamil Nadu Power Distribution Corporation Limited (TNPDCL). The tariff subsidy provided in 2024-25 to TNPDCL was Rs 15,772.21 crore. In 2023, the state government fully absorbed the tariff increase of 2.18%. This led to the tariff subsidy going up by nearly 25% from Rs 12,069.97 crore in 2022-23 to Rs 14,976.42 crore in 2023-24. In 2024, the government partially absorbed the increase of 4.83%, resulting in a marginal increase in tariff subsidy of around 5%. Sivasankar's statement came in the backdrop of the anticipated annual automatic tariff revision that will come into force from July 1 every year until 2026-27, once TNERC issues orders. The revision is linked to the Consumer Price Index based retail inflation for the country for April month of respective year with a cap of 6%.
Time of India
17-05-2025
- Business
- Time of India
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.
New Indian Express
05-05-2025
- Business
- New Indian Express
Discom spent additional Rs 13K crore to buy more power than okayed in '23-24
CHENNAI: Tamil Nadu Power Distribution Corporation Limited (TNPDCL) purchased 82,906 MUs of electricity at a cost of Rs 55,754 crore in 2023-24 while Tamil Nadu Electricity Regulatory Commission (TNERC) had approved the purchase of only 73,730 MUs for Rs 42,575 crore. This resulted in an excess procurement of 9,176 MUs and an additional expenditure of Rs 13,179 crore. According to the recent True-Up order given on April 30, the discom was allowed to purchase 40,686 MUs from central generating stations but managed to get only 37,661 MUs. On the other hand, it exceeded the limit in other areas. While TNERC had approved 1,961 MUs from independent power producers (IPPs) at Rs 1,094 crore, the discom purchased 4,236 MUs at Rs 2,938 crore — an additional expenditure of Rs 1,844 crore. Similarly, in the case of power exchange purchases, TNERC had given permission for 4,428 MUs at Rs 4,170 crore. But the discom procured 8,606 MUs for Rs 7,953 crore. The commission has raised concern over the sharp rise in power purchase cost, saying it does not match the values approved in the previous tariff order. Responding to TNERC's queries, TNPDCL said the increase was mainly due to a revision in fixed charges by central generating stations and a hike in energy charges passed through by the generators.
Time of India
03-05-2025
- Business
- Time of India
TNERC urges increased power generation and better peak hour demand management in TN
Status: cleared Chennai: The Tamil Nadu Electricity Regulatory Commission ( TNERC ) has asked the state-owned utility's to augment power generation capacity and distribute the peak hour consumption to keep power purchase costs in check. In 2023-24 although the TNERC provisionally approved power purchase of 73,730 million units for a cost not exceeding Rs 42,575 crore, TNPDCL ended up buying 82,906 million units at the cost of Rs 55,754 crore. Of this, more than Rs 10,000 crore was spent on short-term power purchase and power purchase from the markets to meet the peak-hour consumption. While approving the true-up petition of the Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) for 2023-24 in April 2025, the regulatory body observed that only 30 per cent of the electricity requirements of the state is met from its own generation. The remaining power is procured from external sources, market, and private generators. "This external purchase constitutes 60 per cent of the discom's aggregate revenue requirement. TNPDCL should focus on the augmentation of adequate generating capacity by developing new renewable energy, pumped storage, and battery storage projects and accelerating the development of ongoing thermal, hydro, and other projects," the commission said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like AI guru Andrew Ng recommends: Read These 5 Books And Turn Your Life Around in 2025 Blinkist: Andrew Ng's Reading List Undo TNPDCL attributed the spike in power purchase cost to various factors, such as the revision of fixed charges of central generating stations and an increase in the energy charges quoted by generators. TNERC, however, pointed out that the cost of power purchase can be controlled by shifting non-solar peak hour loads to solar hours. Consumers, particularly the agricultural consumers, must be sensitised by the state-wide demand response programme and advised to shift their usage of electricity from non-solar hours to solar hours, it said. "Short-term power purchase shall be limited to the extent possible at a reasonable cost," it added. Capacitors for all agri services, leveraging the potential solar power, and solarisation of small feeders are among the other suggestions put forth by TNERC to reduce peak hour consumption.
