The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has announced an increase in electricity tariffs to address financial losses, according to a press statement cited by ANI.
Effective 1 July 2024, the Tamil Nadu Electricity Regulatory Commission (TNERC) has approved a 2.18% hike in electricity tariffs for consumers based on the multi-year tariff order. This adjustment, aligned with the consumer price index, is scaled to 2.18% from a potential 4.7% increase to consider consumer welfare. Notably, this increase for households is entirely covered by the government’s electricity subsidy.
Last year, the TNERC also limited the tariff hike to 2.18%, although it could have been raised by up to 5%. TANGEDCO’s financial losses have escalated significantly, from ₹18,954 crore in FY12 to ₹94,312 crore over the past decade. Consequently, TANGEDCO has been compelled to secure loans from financial institutions and banks due to previous non-commitments, contrasting with the current government’s full absorption commitment from 2021-22.
The loan amount has tripled over the last decade, soaring from ₹43,493 crore in FY12 to ₹1,59,823 crore in FY22. This has led to a 259% increase in net interest on loans, rising from ₹4,588 crore in FY12 to ₹16,511 crore in FY21.
The press release also highlighted that the government has been implementing minor annual tariff hikes to minimize consumer impact. According to the Union Ministry of Power guidelines, annual electricity tariff revisions are mandatory to avail central government funds under the Strengthening of Distribution System (RDSS) scheme.
The tariff hike has drawn criticism from opposition party leaders. AIADMK General Secretary Edappadi Palaniswami and BJP State President Annamalai have condemned the DMK-led Tamil Nadu government for the increase in power tariffs.
LoP Edappadi Palanisami took to his official X handle and wrote, “My strong condemnation to the DMK government which has increased the electricity tariff again in Tamil Nadu! By waiting for the parliamentary elections and the Vikravandi by-elections to end, the DMK Chief Minister has gifted the people of Tamil Nadu with a shock. DMK Chief Minister. What pleasure does this Vidya government have in beating people’s stomachs? “I will do what I say – I will do what I don’t say,” said Mr.@mkstalin. They have not fulfilled any of their promises including the electricity bill once a month; You are only increasing the electricity tariffs without telling! It is unfair to put the burden of your administrative incompetence on the people! It has become a habit of the DMK government to torture the people. Without the basic capacity to provide uninterrupted power, I strongly condemn the DMK government for repeatedly increasing the electricity tariff. I urge the DMK Chief Minister to immediately roll back the increase in electricity tariff which is a huge burden on the people.”
தமிழ்நாட்டில் மின் கட்டணத்தை மீண்டும் உயர்த்தியுள்ள விடியா திமுக அரசுக்கு என் கடும் கண்டனம் !
பாராளுமன்றத் தேர்தலும், விக்கிரவாண்டி இடைத்தேர்தலும் ஓயட்டும் என்று காத்திருந்து தமிழ்நாட்டு மக்களுக்கு பேரதிர்ச்சியை பரிசளித்திருக்கிறார்
விடியா திமுக முதல்வர்.மக்களின் வயிற்றில்… pic.twitter.com/grIgIFUrqk
— Edappadi K Palaniswami – Say No To Drugs & DMK (@EPSTamilNadu) July 15, 2024
Tamil Nadu Bharatiya Janata Party president Annamalai condemned the price hike and also urged the DMK government to withdraw the tariff hike, shift to monthly billing, and move to solar energy to reduce the burden on the public. He wrote on his official X handle, “Within three years of coming to power, the DMK government has increased property tax, electricity charges, drinking water charges, milk prices, and bond registration fees many times and burdened the public with the increase in charges. Shocked. The DMK government purchased electricity worth ₹65,000 crore in the last fiscal year 2023-2024 alone. In three years of coming to power, without taking any measures to increase power generation, the cost of this electricity has been borne by the public. While many states have taken steps to increase solar power generation across the country, the DMK has spent around ₹5,400 crore per month to purchase electricity. If we continue to increase the amount of electricity purchased without increasing the production of electricity, it will lead to repeated increases in electricity tariffs. DMK’s Dravidian model of government is a stupid model without even this basic administrative knowledge. When he was in the opposition, Chief Minister Mr. @mkstalin, who released a video talking about shocking electricity charges, is now giving shocks to the public. He came to power with an election promise that if he did come to power, monthly electricity bills would be calculated, and after three years have passed, he has not implemented it. Without the practice of paying monthly electricity bills, people are already paying 50% more electricity bills. They said that they would install smart meters in the houses and calculate the monthly electricity bill, but now they have shelved the plan to install smart meters. In this situation, for DMK’s administrative failure, how is it fair to impose a fare hike on the public? I urge on behalf of @BJP4Tamilnadu that the DMK, which is victimizing the public for their administrative incompetence, should immediately withdraw this electricity tariff hike and take measures to increase electricity generation including solar power generation and implement the monthly electricity tariff procedure immediately across Tamil Nadu.”
ஆட்சிக்கு வந்து மூன்று ஆண்டுகளில், சொத்து வரி, மின்சாரக் கட்டணம், குடிநீர் கட்டணம், பால் விலை, பத்திரப் பதிவு கட்டணம், என அனைத்தையும் பல மடங்கு உயர்த்தி, கட்டண உயர்வைப் பொதுமக்கள் தலையில் சுமத்தியுள்ள திமுக அரசு, தற்போது, விக்கிரவாண்டி இடைத்தேர்தல் முடிவுகள் வெளிவந்ததும்,…
— K.Annamalai (@annamalai_k) July 16, 2024
(with inputs from Live Mint)
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