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Business News/ Politics / Policy/  TNERC proposes power tariff hike in Tamil Nadu
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TNERC proposes power tariff hike in Tamil Nadu

The regulator has proposed an average tariff increase of 15% each for domestic and commercial consumers, and 31% for industrial consumers

The decision to increase power tariffs in Tamil Nadu is aimed at bridging state power utility Tangedco’s revenue deficit of Rs6,854 crore. Photo: Indranil Bhoumik/ MintPremium
The decision to increase power tariffs in Tamil Nadu is aimed at bridging state power utility Tangedco’s revenue deficit of Rs6,854 crore. Photo: Indranil Bhoumik/ Mint

Chennai: The Tamil Nadu Electricity Regulatory Commission (TNERC) notified a proposal on Wednesday to raise power tariff to bridge a revenue deficit of 6,854 crore incurred by state power utility Tamil Nadu Generation and Distribution Corp. Ltd (Tangedco)

On Tuesday the government had imposed a 20% power cut on heavy users after four months.

Chief minister J. Jayalalithaa has assured that her government would provide additional subsidy to protect the poor.

The regulator has proposed an average tariff increase of 15% for domestic consumers, 31% for industrial consumers and 15% for commercial users. For government and state-aided educational institutions, an increase of 60.44% has been proposed.

The tariff increase was determined after taking into consideration various factors, including the current energy charges for each segment.

The hike has been proposed for all consumer categories. In addition to the proposed hike, an increase of 10 (bi-monthly) in fixed charges has been proposed for domestic users.

For heavy power users including industries, a rise of 50 in demand charges (monthly) has been proposed. Citing the Electricity Act, 2003, the Appellate Tribunal for Electricity orders and the National Tariff Policy, the Tamil Nadu regulator said it has decided to take up determination of aggregate revenue requirement (ARR) and tariff for 2014-15 on its own as the state power utility had failed to file statutory petitions.

The regulator has invited objections and suggestions from the public about its proposals following which a meeting of the state advisory committee will be held. Public hearings will also be conducted across Tamil Nadu to elicit views of the public.

Tangedco will now have to file a petition stating whether they agree with the ARR and tariff determination.

Meanwhile, the state power utility has re-imposed restrictions and control measures for high tension industrial and commercial users, effective from Wednesday. “We have received notification from authorities. The restriction measures are in place again for high tension users," said D. Balasundaram, president of the Tamil Nadu Electricity Consumers Association.

Industrial and commercial (high tension) consumers can now use grid power only up to 10% of their allowed energy and demand load during peak hours between 6pm and 10pm.

PTI contributed to this story.

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Published: 24 Sep 2014, 07:31 PM IST
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