Industries in Coimbatore on Tuesday expressed concern over lack of clarity on the proposed hike in electricity charges in Tamil Nadu from July 1 this year and the likely impact of the hike.
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According to the tariff order passed in 2022 by the Tamil Nadu Electricity Regulatory Commission (TNERC), there will be an annual increase in the tariff every year for five years. The increase will be based on the consumer price index or 6%, whichever is lower.
Reacting to a message on tariff hike circulated on social media, the TN Fact Check said on Twitter on Tuesday the news about electricity tariff increase again was false, the message circulated on social media was released in July 2022, and the tariff was not increased now.
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A.D. Thirumoorthy, chief technical advisor of the Indian Wind Power Association, said the TNERC or the Tangedco should issue a press release or notification clarifying the hike and the quantum of increase in the electricity charges from next month.
According to N. Pradeep, president of Tamil Nadu Electricity Consumers Association, with the TNERC having approved the multi year tariff framework, electricity costs are expected to go up unless the State government decides to absorb the additional costs. The industry hopes the State government will take positive steps so that the industry is not burdened with higher charges again.
J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises, said it was not just the electricity tariff, but all charges such as Maximum Demand would increase. If the hike was implemented, it would be an issue for micro and small-scale industries that are already operating only two shifts a day.
Industry sources added that the MSMEs were also fighting against high fixed costs. Another increase in electricity charges, including wheeling and transmission charges, would have an impact on production costs.