The Tamil Nadu government has decided to hike the power tariff after a gap of eight years. This comes in the backdrop of increased losses posted by Tangedco ₹1,13,266 crore as on March 31, 2021, up six times from ₹18,954 crore in 2011-12, says a press release.

The utility will be filing a tariff revision petition with the Tamil Nadu Electricity Regulatory Commission, it said.

While free power for 100 units will continue, for those consuming up to 200 units, the monthly increase will be ₹27.50, said the Minister of Electricity, Senthil Balaji.

In the slab from 300 units up to 900 units, those consuming up to 900 units, the increase will be ₹565 for two months, he told newspersons.

There are 36.25 lakh consumers (15.3 per cent) consuming 201-300 units for whom the monthly increase will be ₹72.50. Similarly, there are 18.82 lakh consumers (7.94 per cent) consuming 301-400 units and the increase will be ₹147.50 per month, he said.

Despite the increase, the power tariff in the State is the lowest when compared with other States, says a tweet by Tangedo. For instance, in Tamil Nadu for 100 units, the power is free while it is ₹592 in Karnataka; ₹385 in Kerala and ₹254 in Andhra Pradesh.

Similarly, for 900 units, the tariff in Tamil Nadu will be ₹5,550 while in Karnataka it is ₹7,878; in Kerala it is ₹6,650 and in Andhra Pradesh it is ₹6,232.

Senthil Balaji attributed many reasons for the increase. For instance, in the last ten years a number of projects could not be completed on time leading to cost increase in Interest During Construction to ₹12,647 crore. Further, in the last ten years, the cost of power for the utility has increased by 127 per cent to ₹37.430 crore from ₹16,488 crore, he said.