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Electricity tariff in T.N. UPSC NOTE

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  Why in news On July 15, the Tamil Nadu Electricity Regulatory Commission (TNERC) announced an average hike of 4.83% for domestic and all ...

 Why in news

  • On July 15, the Tamil Nadu Electricity Regulatory Commission (TNERC) announced an average hike of 4.83% for domestic and all other consumers

  • Micro, Small, and Medium Enterprises protesting the rise in electricity tariffs 

Why has the tariff been increased?

  • The genesis for the present revision can be traced back to the TNERC’s tariff order of September 2022 when it was decided to adopt a multi-year tariff framework, beginning from FY2022-23 to 2026-27. 

  • At the time, the panel also decided that irrespective of the inflation rate, the actual annual increase would be capped at 6%. 

  • Official says the increase would fetch an additional revenue of ₹2,720 crore 

  • But the power utility was still expected to end the year with a loss of ₹12,280 crore assuming that there is no significant increase in demand during the year.


What has been the impact?

  • State government asserts that about one crore domestic consumers have been spared of the increase. 

  • There is no change in the scheme for free consumption of 100 units bi-monthly for the domestic category or the free power supply scheme for huts and agriculture.

  • However MSMEs, which are over 25 lakh in number and provide employment to the local youth, have protested strongly against the increase, saying that it puts a heavy burden on them. 

  • According to the segment of open end spinning mills, the higher electricity charges mean ₹25,000 additional outgo a month. 

  • The power charges went up by ₹75,000 a month last year. 

  • Such frequent increase in power cost is making the textile industry of Tamil Nadu “uncompetitive”

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Electricity tariff in T.N. UPSC NOTE
Electricity tariff in T.N. UPSC NOTE
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