The Tamil Nadu government on Monday, July 18, announced a hike in the power tariff for TANGEDCO consumers. The government proposed an increase of Rs 27.50 (per month) for those using up to 200 units and 65 paise per unit rise for railways and educational institutions. There would be no change in the scheme of providing free electricity of up to 100 units, Electricity Minister V Senthil Balaji said, and claimed the increase was inevitable to reduce the mounting debts of the state power utility. This is the first time in five years that the electricity rates have been revised.
A tariff of Rs 275 for 601-700 units consumed for a billing period, Rs 155 for 501-600 units, Rs 298.50 (per month) for above 500 units, Rs 147.50 (per month) for 301-400 units and a hike of Rs 27.50 (per month) has been proposed for those using up to 200 units. About 65 paise per unit hike is proposed for railways and educational institutions. Power looms would continue to get the free power up to 750 units. This means that the tariffs will be increased by 12%. The Times of India reported that as many as 63.35 lakh households consume up to 200 units in Tamil Nadu, while about 84,000 consume 800-900 units.
"The electricity tariff in Tamil Nadu has been proposed to increase rates without affecting the public. We hope to make up for the huge Rs 12,647 crore debt the TANGEDCO has acquired over the last decade," Senthil Balaji told reporters. There will be no change in electricity charges for 42% of households in the state, the minister said. He also added that consumers can voluntarily give up the free 100 units offered by the government.
The minister said the government was considering strictly implementing one electricity connection per household. "The Union government has written 28 times to the Tamil Nadu government insisting upon restructuring the power tariff. It said the state would not get a central subsidy if the debts were not reduced," Senthil Balaji said, adding that if restructuring was not done, the RBI would no longer grant loan extensions to the state.
The proposed tariff hike will be implemented only after being approved by the regulatory body, the Minister said.