Power tariff concession for TN MSMEs & handlooms to impact TANGEDCO revenue

Chennai, Dec 21 (KNN) With the revision in power tariff of MSMEs and handlooms, Tamil Nadu Electricity Minister V Senthilbalaji said the projected revenue increase will witness a considerable drop.

The government was expecting a Rs 19,000 crore increase in Tangedco’s revenue per year, reported The Hindu Business Line.

“However, with the reduction of tariffs in certain categories for MSMEs, handloom and powerloom sectors, among others, we are getting an additional revenue of only about Rs 1,000 crore per month (as against the projected Rs 1,583 crore),” said the Minister.

Tangedco’s revised tariff structure for domestic and other categories came into effect this September after the Tamil Nadu Electricity Regulatory Commission (TNERC) accepted the tariff increase proposed by Tangedco.

The regulator has also allowed for an annual revision of tariffs going forward.

In August 2017, the previous tariff order was issued and since then, no tariff orders have been issued.

As a result, the prevailing tariff rates were inadequate to cover the increasing power purchase costs.  (KNN Bureau)