Electricity Minister Senthil Balaji said that that the Centre wrote to Tamil Nadu asking to revise the power tariff to receive subsidy.
Published Jul 19, 2022 | 2:34 PM ⚊ Updated Jul 19, 2022 | 4:21 PM
Tamil Nadu government all set to hike electricity tariff. (Representative Image/ Creative Commons)
Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) is set to hike the electricity tariffs in the state by 12% to 52% based on the consumption slabs from September.
The proposal to increase the tariff slabs was announced by Tamil Nadu Electricity Minister Senthil Balaji on Monday evening.
The minister said, “A host of reasons led to the submission of tariff revision proposal which includes massive losses, mounting debts faced by TANGEDCO, increasing purchase cost of power and failure of previous AIADMK government to deal with the liabilities under the UDAY scheme etc.”
Balaji added that the Union Government had written to Tamil Nadu government 28 times asking to revise the power tariff.
“The Centre in its letter had mentioned that Tamil Nadu would not receive the central subsidy if debts were not bought under control,” Balaji added.
He also claimed that the Union Government has written to the Reserve Bank of India asking them to stop extending loans to the state until TANGEDCO restructures its tariff.
The new rates would come into effect only once the TNERC gives its approval for the proposal.
According to the proposed tariff hike, a total of 2.37 crore (42%) domestic and hut consumers will not be affected by the rate revision. The state will continue providing 100 units of free electricity every month. However, a provision will be introduced for those who wish to surrender the free units subsidy.
The electricity rates are expected to go up for consumers who use more than 100 units a month.
If the consumption is up to 200 units (63.35 lakh consumers), the rates would go up by Rs 27.50 per month. Similarly, for consumers using up to 300 units (36.25 lakh consumers), the bill would go up by Rs 72.50 per month.
The proposed hike for people consuming up to 400 units (18.82 lakh consumers) is Rs 147.50 per month. Likewise, for the usage of up to 500 units, the charges would increase by Rs 297.50 per month.
As for consumers using beyond 500 units of electricity, they will see a proposed increase of Rs 155 per month for 600 units, Rs 275 per month for 700 units, Rs 395 for 800 units per month and Rs 565 a month for 900 units.
| Households (in lakhs) | Units | Old rates (in Rs) | New rates (In Rs) |
| 63.35 | Up to 200 | 170 | 225 |
| 36.25 | 300 | 530 | 675 |
| 18.82 | 400 | 830 | 1125 |
| 10.56 | 500 | 1130 | 1725 |
| 3.14 | 600 | 2440 | 2730 |
| 1.96 | 700 | 3100 | 3650 |
| 1.26 | 800 | 3760 | 4550 |
| 0.84 | 900 | 4420 | 5550 |
Further, according to the proposal, the rates are expected to increase by Rs 50 per unit for 53% (19.28 lakh) commercial consumers (low tension category). As for the industrial customers in the high-tension category, the charges would go up by 40 paise per unit.
Around ₹ 65 paise per unit hike has also been proposed for the Railways and government educational institutions. The hike for private educational institutions is ₹1 per unit.
Importantly, the fixed bimonthly charges of ₹ 20 to Rs 50 for the domestic consumer have been withdrawn and around 2.37 crore consumers are expected to benefit from it.
Opposition slams DMK Government
Hitting out at the DMK government for deciding to increase electricity tariff, state BJP president K Annamalai asked Balaji if he is making people suffer so that the latter can lead a life of luxury?
In a tweet, Annamalai accused the government of revising EB rates for all sections of consumers by giving excuses and alleged that the ministry is mired in corruption to make a few rich.
நீங்கள் செல்வச் செழிப்புடன் இருக்க மக்களை அவதிக்குள்ளாக்குவதா? pic.twitter.com/ZSiP21QgwX
— K.Annamalai (@annamalai_k) July 18, 2022
