Tamil Nadu Electricity Tariff Increasing from 12% to 52% Starting in September 2022

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Recently the Tamil Nadu government implemented its policy of increasing electricity tariffs from 12% to 52% starting in September 2022 for all consumers.

To fulfill the DMK’s election promise, the state government has decided to withdraw the fixed charges of $20 to $50 for domestic connections. The first 100 units will remain free for all domestic customers.

Tangedco estimates that 63.35 lakh domestic consumers in the state consume up to 200 units, while 84,000 households consume 800 to 900 units.

According to a Tangedco official, the revised tariffs will take at least two months to implement because approval from the Tamil Nadu Electricity Regularly Commission is required.

According to a Tangedco source, “TNERC will hold public hearings before submitting their recommendations.

According to a Tangedco source. According to a note from the electricity department, the tariffs were revised so that the state could receive 10,793 crore from the Union government under the RDSS (revamped distribution sector scheme) and an additional 0.5 percent loan from the Union power ministry.

The last time the electricity tariff was raised was in 2014. Tangedco stated that even after the proposed revised tariff, the power tariff in Tamil Nadu is lower than that of neighboring states and states such as Maharashtra, Gujarat, and Uttar Pradesh.

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Tamil Nadu Electricity Tariff Increasing from 12% to 52% For All Consumers

Following the recent increase in property tax, electricity charges may soon follow suit. In a press conference held here on July 18, Electricity Minister V. Senthilbalaji announced a proposed revision to the electricity tariff.

Which has been submitted to the Tamil Nadu Electricity Regulatory Commission (TNERC). Chief Minister Jayalalithaa raised electricity rates a decade ago in November 2011.

He stated that a number of factors constant, burgeoning losses, failure of the previous State government to amortize the huge liabilities under the Ujwal DISCOM Assurance Yojana (UDAY) scheme.

Increasing purchase cost of electricity, and a need to improve the transmission network have forced the Electricity Department to opt for this revenue increasing measure.

Mr. Senthilbalaji stated that the proposed tariff revision would not increase charges for 42 percent of domestic consumers, totaling 2.37 crore domestic and hut consumers, and that the 100 units of free electricity scheme would be maintained.

However, a provision allowing free units to be surrendered voluntarily would be implemented.
Domestic consumers who use more than 100 units will see their electricity bills rise.

The Minister stated that the increase would be 27.50 per month for those using up to 200 units (63.35 lakh). The monthly increase would be 72.50 for consumers using up to 300 units (36.25 lakh).

Those using up to 400 units (18.82 lakh) would receive a proposed monthly hike of 147.50, while those using 500 units (10.56 lakh) would receive a monthly hike of 297.50.

Domestic consumers who use more than 500 units, known as the ‘creamy layer,’ will see their electricity bill rise by 155 per month for 600 units, 275 per month for 700 units, 395 per month for 800 units, and 565 per month for 900 units. The electricity charges are actually billed every two months.

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The Electricity Department has also proposed increasing electricity charges for commercial and other categories of consumers.

With low tension commercial connections expected to see a 1.15 per unit increase, private educational institutes a 1 per unit hike, powerlooms a 70-paise hike for using more than 750 units, and small and micro industries a 50-paise hike.

The Electricity Department has also proposed charging 225 for customers who have more than one electricity connection, as well as a separate tariff for common lights, lifts, and water distribution in multistory apartments, which are currently charged under the common service category.

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