Following a recent increase in electricity rates, the Electricity Regulatory Commission has issued an order stating that an additional 4.7% increase will be implemented starting from 1 July 2023, merely nine months after the previous hike.
The Tamil Nadu Electricity Board submitted an application to the regulatory authority on 18 July 2022, to raise power consumption and introduce new connection charges in order to overcome the financial crisis.
As per the new pricing structure, households consuming up to 400 units will be charged ₹ 4.50 per unit. The rate increases to ₹ 6 per unit for consumption ranging from ₹ 401 to ₹ 500, ₹ 8 per unit for consumption between ₹ 501 and ₹600, and ₹ 9 per unit for consumption from ₹ 601 to ₹ 800. For consumption ranging from ₹ 801 to ₹ 1,000, the rate is set at ₹ 10 per unit. Furthermore, any consumption above ₹ 1,001 will be charged at a higher rate of ₹ 11 per unit.
Under the previous tariff structure, residential properties were charged between ₹ 2.50 and ₹ 6.60 per unit for electricity consumption.
For large industries falling under the high-pressure category, the unit charge has been raised from ₹ 6.35 to ₹ 6.75 per unit. Additionally, the demand fee has been increased from ₹ 350 per kilowatt to ₹ 550 per kilowatt per month.
Likewise, electricity rates were increased across all categories.
As per the order issued by the Commission last year regarding the electricity tariff hike, an annual increase in electricity rates has been authorized starting from 1 July 2023 each year until 2026-27.
As per the regulations, the electricity rates should be increased based on the lower value between the current inflation rate and 6% as of April 2023.
In April of this year, the inflation rate was recorded at 4.7%, which is lower than the 6% threshold. Consequently, starting from the following month, all category charges will be raised by 4.7%. This implies that the existing unit cost will experience a 4.7% increase.
The general population is encountering significant challenges in meeting the increased electricity bills. Given this situation, DMK Government implementing another electricity tariff hike will only exacerbate the existing difficulties faced by the public.
Many parts of Tamil Nadu also facing frequent power cuts under DMK rule and adding to that discrepancies in electricity tariffs were also reported.
(With inputs from Dinamalar)
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