TNERC issues tariff increase order effective July 1; no hike for domestic consumers

Tamil Nadu Electricity Regulatory Commission (TNERC) has issued an electricity tariff order (http://www.tnerc.gov.in/Orders/files/TO-Suo-motu%20O300620231724.pdf) effective from July 1 and said the hike is not applicable to the domestic consumers as per the policy direction issued by the Tamil Nadu government. 

In its previous tariff hike order on September 9, 2022, TNERC had approved a methodology for Consumer Price Inflation (CPI) linked tariff revision for FY 2023-24 to FY 2026-27. Based on this, it issued a suo-motu order on tariff for Tangedco.

In a previous order, TNERC said it would adopt the CPI index of April 2023 compared with CPI index of April 2022 to arrive at the escalation rate OR 6% whichever is lower and revise the tariff schedule.

However, the Commission said as per the policy directive of the Tamil Nadu government it has decided to compare the General CPI Index of April 2023 with the index for the month of August 2022. 

It has applied a rate of 2.18% for tariff escalation for 2023-24 for both energy charges and fixed charges. 

The Common facilities in Multi-tenements which was brought under single Slab Tariff LT – ID in the previous order will see an slight increase in energy charges to ₹8.15 per unit from ₹8 per unit, while fixed charges will increase to ₹102/kw per month from ₹100/kw per month.

ln respect of multi tenements/multi-storey flats/residential complexes having both domestic and non-domestic utilities, common facilities such as common lighting, common water supply, lift will be charged under this tariff  (LT-ID) only if the non residential built up area does not exceed 25% of the total built up area. lf it exceeds 25%, the consumption for such facilities shall be charged under LT Tariff V, TNERC said.

For High Tension Industries, Factories, IT services under category HT-1 the consumption charges will increase to ₹6.90 per unit from  ₹6.75 per unit, while demand charges would increase to ₹562 per kva per month from ₹550 per kva per month.

For Industries and IT services under LT-III B category the consumption charges would increase to ₹7.65 per unit from ₹7.50 per unit, while fixed charges would increase to ₹562/kw per month from ₹550/kw per month. 

TNERC also said the inflation of tariff for ensuing years shall be based on the formula stipulated in its tariff order dated September 9.

Last month, the state government had said it has decided to bear the burden of the hike as a subsidy for the domestic category.