Tamil Nadu Government Absorbs Power Tariff Hike for Domestic Consumers
The Tamil Nadu Electricity Regulatory Commission (TNERC) has recently announced a 2.18% increase in power tariffs for the year 2023-2024. However, the Tamil Nadu state government has stepped in to relieve domestic consumers from the burden of this hike by absorbing the additional costs.
Effective from July 1st, the tariff hike applies to all categories of consumers. The TNERC has stated that multi-tenement facilities, such as apartments, will experience an increase in energy charges by Rs 0.15 per unit, along with a rise in fixed charges by Rs 2/kilowatt per month. Additionally, common facilities like lighting and water supply in multi-tenements, which consist of both domestic and non-domestic utilities, will be charged under the LT-ID tariff if the non-residential area does not exceed 25% of the total built-up area. In cases where the non-residential areas exceed 25%, the tenements will be charged the LT Tariff V.
For high tension consumers falling under the HT-2 category, consumption charges have increased from 15 paise per unit to 25 paise per unit. The demand charges have also been raised from Rs 550 per kVA (kilovolt-amp) per month to Rs 562 per kVA per month. Similar hike rates in demand charges have been applied to industries and IT services falling under the LT-III B category, while the consumption charges have gone up by 15 paise per unit.
The revised rates have been determined based on a policy directive from the Tamil Nadu government, which compared the General Consumer Price Index (CPI) of April 2023 with that of August 2022. Going forward, the same formula will be utilized to calculate tariff hikes in the coming years, ensuring transparency and consistency.
This decision comes after the TNERC approved a proposal by the Tamil Nadu Generation & Distribution Corporation (TANGEDCO) to increase power tariffs for domestic consumers in September of last year. The commission also announced that power tariffs would be regularly revised annually from July 1, 2022, until 2026-2027.
While some consumers may feel the impact of the power tariff hike, the Tamil Nadu government’s intervention to absorb the increase for domestic consumers will alleviate some of the financial burden. As the government takes responsibility for the hike, it aims to support households in managing their electricity expenses.
With this move, the Tamil Nadu government demonstrates its commitment to addressing the needs of the people, particularly during challenging economic times. By absorbing the power tariff hike, they aim to provide relief to domestic consumers and ensure equitable access to electricity.
The Tamil Nadu state government’s initiative has been widely appreciated by consumers, highlighting the government’s responsiveness to the concerns of the population. Additionally, the transparent methodology employed by the TNERC in determining tariff hikes ensures a fair and balanced approach to electricity pricing.
As the new power tariffs come into effect, it remains essential for consumers to monitor their electricity usage and explore energy-saving practices to minimize the impact on their monthly bills.
