Tamil Nadu hikes power tariff for commercial use by 2.18%

Chennai, June 9 (KNN) The Tamil Nadu government has increased the power tariff of categories such as commercial and high-tension connections by 2.18 per cent, while the tariff for domestic consumers remain the same.

The revised power tariff will come into force from 1 July 2023.

But domestic consumers will have to pay a bit more for the common area connections, which will now be charged 8.17 per unit against the earlier 8 per unit. 

Tamil Nadu Electricity Generation and Distribution Corporation (Tangedco) has called it a marginal increase compared to other states as consumers who paid 100 will pay 102.

The 2.28 per cent tariff hike will be applicable for fixed and demand charges too in other categories such as commercial and high-tension connections.

As earlier, domestic connections get the first 100 units for free and the second 100 units with 50 per cent subsidy if the bi-monthly consumption does not exceed 500 units.

In connections under I-A category, the first 400 units are charged 4.5 per unit, after which the per unit rate increases for every 100 units.

The Tamil Nadu Electricity Regulatory Commission (TNERC) is likely to issue a revised tariff order in the last week of June. 

K E Raghunathan, National president of the Association of Indian Entrepreneurs has warned that the tariff hike would directly impact all MSMEs and commercial units.

“When the MSMEs are demanding rollback of last year's tariff hike, it is a pity that the tariff is going to be hiked again,” he said.

Raghunathan argued that this decision lacks rationality, except reduction of some losses for Tangedco.

“The gap between the government understanding and the people's requirement is widening,” he said.  (KNN Bureau)