Tamil Nadu government hikes power tariff for TANGEDCO consumers. Read here

Tamil Nadu Electricity Minister V Senthil Balaji on Monday informed that the state government has decided to hikes the power tariff for TANGEDCO consumers proposing an increase of ₹27.50 (per month) for those using up to 200 units and 65 paise per unit rise for railways and educational institutions.

This being said, the scheme of providing free electricity of up to 100 units remains unchanged, the minister said. He cited the rise in tariff to the mounting debts of the state power utility.

 "The electricity tariff in Tamil Nadu has been proposed to increase without affecting the public. We hope to make up for the huge ₹12,647 crore debt the TANGEDCO has acquired over the last decade," Senthil Balaji told reporters here. There will be no change in electricity charges for 42% of the households. 

"Consumers can opt for waiver of subsidised power of up to first 100 units power consumed if they do not require,” the Minister said. 

A tariff of ₹275 for 601-700 units consumed for a billing period, ₹155 for 501-600 units, ₹298.50 (per month) for above 500 units, ₹147.50 (per month) for 301-400 units and a hike of ₹27.50 (per month) has been proposed for those using up to 200 units. About 65 paise per unit hike is proposed for railways and educational institutions. The powerlooms would continue to get the free power up to 750 units. He said the government was considering to strictly implement one electricity connection per household.

 "The Central government has written 28 times to the Tamil Nadu government insisting upon restructuring the power tariff. It said the State would not get central subsidy if the debts were not reduced," Senthil Balaji said. 

TANGEDCO was reeling under debts and it is not in a position to borrow as lending institutions were not forthcoming, he said.

 "Further, the Union Government has written to the Reserve Bank of India to stop extending loans to the State if the Tamil Nadu Generation and Distribution Corporation Ltd does not restructure its electricity tariff," the Minister said. 

Hence, there was no option left but to enhance the tariff with the sole objective of saving the public power utility, he said and claimed that over one crore consumers would not be affected by this new tariff regime. The proposed tariff hike will be implemented only after being approved by the regulatory body, the Minister said.