The Tamil Nadu Government will protect electricity consumers from any tariff hike, said the Chief Minister J Jayalalithaa in a statement on Tuesday.
In the context of the Tamil Nadu Electricity Regulatory Commission initiating the process of a tariff revision, the Chief Minister said the Government will hike the electricity subsidy to insulate the poor from any power tariff hike.
Government supportThe State Government has supported the cash-strapped Tamil Nadu Electricity Board with a financial assistance of over ₹25,255 crore including an electricity subsidy of ₹11,149 crore. In the current year, the State Government has allocated ₹10,575 crore to the utility.
Electricity regulations dictate that the power distribution companies have to apply to the regulatory commission for tariff revision annually to account for increases in power generation costs. The regulator can also take suo motu cognisance if the utility does not apply for such a revision.
The TNERC has come out with a tariff revision proposal in the context of the increase in coal costs, which range from ₹3,298 per tonne of domestic coal to ₹6,896 for imported coal. Wage and pension costs were ₹4,370 crore in the current year while interest costs were around ₹8,463 crore.
According to official sources, the tariff hike is in the range of about 15 per cent for domestic consumers. The TNERC’s proposal will be followed up with an elaborate consultation process with consumers and utility before a final decision is taken.