Power tariff in Tamil Nadu set to rise after a decade

New Delhi: The power charges in Tamil Nadu are in for a hike with the state electricity board submitting the proposed rates to the Tamil Nadu Electricity Regulatory Commission (TNERC) for clearing the proposal.

The hike in power traffic in the state is being implemented after 2011 for the first time. State power minister Senthil Balaji in a statement said that burgeoning losses and the huge liabilities under the Ujwal DISCOM Assurance Yojana (UDAY) scheme which the previous government had not ameliorated are the major reasons for the proposed hike in charges.

Another reason for the proposed increase in charges is a need to improve the transmission network. The minister however said that in the proposed hike, 42 per cent of the domestic consumers would not have any increase in charges. This includes 2.37 crore domestic and hut consumers.

The government, according to the minister, is for continuing the 100 units of free electricity per month scheme but a provision to voluntarily surrender the free electricity would be introduced.

The state electricity board in its proposal to the TNERC has suggested an increase in tariff rates for domestic consumers who use more than 100 units of power a month.

According to the proposal submitted to the TNERC, those using power up to 200 units (63.5 lakh consumers)will have an increase of Rs 27.50 per month while those using up to 300 units (36.25 lakh consumers) will have an increase of Rs 72.50 per month.

The proposal also suggests an increase of Rs 147.50 for those using power up to 400 units a month (18.82 lakh consumers) and those who use electricity up to 500 units (10.56 lakh) will get a hike of Rs 297.50.

Domestic consumers who use more than 500 units per month will have to shell out Rs 155 per month for 600 units, Rs 275 per month for 700 units, Rs 395 per month for 800 units, and Rs 565 per month for 900 units. Electricity charges are billed for a bimonthly period.

The commercial consumers including the Low tension commercial connections expect an increase of Rs 1.15 per unit, private educational institutions will have a hike of Rs 1 per unit, and power looms will have a hike of 70 paise per unit for using more than 750 units, and a 50 paise per unit hike for small and micro industries.

The fixed charges will be removed as this was announced in the election manifesto of the DMK.

While the state electricity board has proposed this tariff hike, it will be the TNERC will have to conduct public hearings and seek feedback from the consumers.

(With PTI inputs)

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)