Steep power tariff hike for domestic consumers

Domestic consumers are among those whose electricity tariff will go up steeply from April.

Table: Existing and new tariff (Low tension supply)


The hike in the tariff ranges between 75 per cent and 110 per cent and there is not much change in the tariff revision, ordered by the Tamil Nadu Electricity Regulatory Commission (TNERC), compared to the proposal mooted by the Tamil Nadu Generation and Distribution Corporation (TANGEDCO).

According to the order issued by the TNERC on Friday, subsidy to domestic consumers who consume 501 units and above in two months, has been removed totally.

However, subsidy for the other categories of domestic consumers has been retained. For example, those consuming up to 100 units bimonthly will get a subsidy of Rs. 1.50 per unit for all 100 units.


In total, a four-tier slab system for domestic consumers would replace the five-tier slab system.

TANGEDCO’s proposals on high tension consumers were also by and large accepted by the TNERC.

Briefing reporters of the details of the order, TNERC member K. Venugopal said the TANGEDCO would earn an additional revenue of Rs. 7,874 crore on account of the tariff revision, with the share of low tension consumers being around Rs. 5,300 crore and high tension consumers being Rs. 2,600 crore.

Table: Existing and new tariff (High tension supply)

The tariff revision would be able to recover the full costs for the TANGEDCO during the year 2012-13.

Mr. Venugopal said the average tariff revision worked out to 37 per cent over the previous tariff.

Another member S. Nagalsamy said the TANGEDCO has been directed to carry out a study on line losses and submit it to the Commission by October/November.

The other directions included abolition of monthly minimum charges; rationalising the definition of agricultural connection by including incidental activities, such as sericulture, horticulture and poultry farming, using water from agricultural pump sets.


Source: The Hindu



Mechanical engineer with experience in Power Plant maintenance , operation and auditing for ISI marked products. MBA in Power Management from National Power Training Institute, Faridabad. Working as Consultant for Bridge to India Pvt. Ltd. Expertise in: 1) Power sector regulations 2) Financial Modelling 3) Project Development solar PV plants 4) Strategic consulting 5) Report writing

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