Power tariff hike on the cards for Tamil Nadu

Chennai: Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) has decided to hike the electricity tariff after eight years and the rates would be increased as for all those who consume more than 200 units bimonthly.

The tentative plan for the hike is as follows: 63.35 lakh households that consume up to 200 units in two months the increase in rates would be 26.73 per cent, up to 300 units it would be 15.30 per cent, 400 units 7.94 per cent, 500 units 4.46 per cent, 600 units 1.32 per cent, 700 units 0.83 per cent, 800 units 0.53 per cent and 900 units 0.35 per cent.

Those who are now supplied free electricity under various categories would continue to get free of cost while the rates will be hiked for all other consumers.

Also the DMK’s promise in its election manifesto (no 222) would be implemented by exempting 2.37 crore domestic consumers from the Rs 20 to 50 standard rate they were charged for two months.

Electricity Minister V Senthil Balaji, who spoke to the media about the proposed hike, justified it saying that TANGEDCO’s losses had shot up from Rs 18,954 crore to Rs 94,312 crore in 10 years and to Rs 1,13,266 crore from March 31, 2021.

Giving details about the manner in which the losses escalated and also the reasons behind it, the Minister said that the Union Government had mandated the use of imported coal by 10 per cent and that was a major reason for the cost rise of electricity production.

He pointed out that though the State had projected itself as a power excess State in the last 10 years, two third of the electricity was procured at exorbitant rates and that the debt burden had gone up several times.