Micro, Small, and Medium Enterprises (MSMEs) in Tamil Nadu are expressing dissatisfaction with the recent electricity tariff hike, as they are still recovering from last year’s steep increase. The Tamil Nadu Electricity Regulatory Commission has raised the electricity tariff for all consumers by 2.18% starting from July 1st.
The energy charges for LT industries have been increased from Rs 7.50 per unit to Rs 7.65 per unit, while the fixed charges for different kW ranges have also been raised significantly. For consumers with a sanctioned demand of up to 50 kW, the fixed charges are now Rs 77 per kW per month. For those with a demand of 51-112 kW, the charges amount to Rs 153 per kW per month, and for demands above 112 kW (CT Service), the fixed charges have reached Rs 562 per kW per month.
The Tamil Nadu Association of Cottage and Micro Enterprises Coimbatore District President, J James, asserts that while they are not opposed to the increase in energy charges, they are demanding a rollback of the fixed charges and peak hour charges. Previously, under the LT industries tariff, they were paying Rs 35 per kilowatt in fixed charges. The sudden increase in these charges, amounting to a rise of over 250%, is severely impacting the financially vulnerable MSME sector.
Furthermore, James mentions that peak hour charges are being levied on LT industries consumers without even installing the necessary time-of-day meters. Even though the government has reduced the peak hour charges from 25% to 15%, MSMEs are calling for a complete rollback. They urge the state government to retract the tariff hike to safeguard the MSME sector and protect the livelihoods of its workers.
The double tariff hike within a short span of nine months has dealt a severe blow to MSMEs that were grappling with the repercussions of the previous increase. The excessive fixed charges and the improper collection of peak hour charges have further burdened these enterprises. It is crucial for the state government to heed the pleas of MSMEs and address their concerns promptly.
The MSME sector plays a vital role in the economy, providing employment opportunities and contributing to growth. It is crucial to support and protect these enterprises to ensure the overall development of the state. The government should consider reviewing the electricity tariff hike and making necessary adjustments to alleviate the financial strain on MSMEs.
