Even as Micro, Small and Medium-scale Enterprises (MSMEs) continue to oppose the revised power tariffs in the state, the Tamil Nadu government has passed an order putting a temporary hold on the peak hour charges. Currently, peak hour charges on LTCT (Low Tension Current Transformer) consumers are levied at 15%. The order has also reduced network charges for solar panels by 50%. The stay on peak hour charges will only be until the state government has installed new smart metres.
Nearly 40,000 MSMEs shut shop across Tamil Nadu on September 25, protesting against the hike in power tariff. The Tamil Nadu Open-ended Spinning Mills Association (OSMA) has also gone on strike until the end of the month, citing sustained losses due to several reasons including revised tariffs. Additionally, TNM’s ground report in Coimbatore shows that the hike in peak hour and fixed charges has worsened the condition of the MSMEs which are already grappling with GST and an increase in raw material prices.
However, according to a report in the Times of India, the Tamil Nadu Generation and Distribution Corporation has calculated a loss to the tune of Rs 196.10 to 188.79 crore because of not collecting peak hour charges, and Rs 7.31 crore due to reduction in network charges. It will be compensated by way of a subsidy, the report adds.