Tariffs raised after 7 years

The Tamil Nadu Electricity Regulatory Commission (TNERC) has revised power tariffs, hiking the cost of electricity by Re 1 for domestic consumers using more than 600 units bi-monthly. The new tariff will apply for every additional unit consumed over and above 600 units.

The revision, which comes after seven years, is expected to bring in additional revenue of Rs 1,651 crore.

While the low-end domestic consumers have been spared, industrial, commercial and educational institutions and cinema theatres in both the high-tension (HT) and low tension (LT) categories have been subjected to the tariff hike, ranging from 30 paise to Rs 1.1 per unit.

Free power supply to small farmers would continue and for the first time, petty shop owners who consume less than 100 units bi-monthly will get tariff reduction of Re 1. The new tariff comes into effect from August 1.

TNERC chairman D Kabilan told reporters that the the Tamil Nadu Electricity Board (TNEB) had submitted a petition in February, seeking a 40 paise increase for those who consume between 200 and 400 units bi-monthly, 75 paise increase for those who consume 400-600 units and Re 1 for those who consume above 600 units.

Later, they filed another petition asking TNERC to spare the first two categories and consider only those who consume 600 units and above for a tariff hike.

The revision comes at a time the TNEB has been suffering an accumulated loss of Rs 16,000 crore. As per the Central Electricity Act, 2003, the TNERC recommendation on tariff hike is binding on the government.

If the government wants to have a tariff structure less than that proposed by the TNERC, it has to compensate the TNEB to the extent of the loss.

The last hike was on March 16, 2003, said Kabilan, pointing out that present hike would bring in additional revenue of Rs 1,651 crore.