Brace for power tariff hike in Tamil Nadu every July from next year

Consumer price index value of May will be taken as the basis

Consumer price index value of May will be taken as the basis

CHENNAI From next year, July will be the month when electricity consumers may experience the increase in power tariff annually, if the Tamil Nadu Electricity Regulatory Commission (TNERC) gives the nod for the Tamil Nadu Generation and Distribution Corporation (Tangedco)’s proposal.

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This feature — year-on-year increase in power tariff for all categories of consumers for the next four years (up to 2026-27) — has been mentioned in the tariff petition filed by the Tangedco before the TNERC.

“We have capped the quantum of hike at 6%,” says an official of the Corporation, adding that the utility has taken into account a five-year control period, which includes the present financial year.

For the current year (2022-23), September 1 will be the date for the hike in tariff, subject to the regulator’s approval.

The utility has proposed the consumer price index (CPI) as the basis with May being the reference month. The difference between the CPI value of the year in question and that of the previous year will be taken into account. If it is lower than the ceiling of 6%, it will constitute the quantum of hike. Otherwise, the pre-fixed figure of 6% will be regarded as the quantum of hike.