No Hike In Power Tariff For Domestic Consumers Says Tamil Nadu Government After Days Of Speculation

The Tamil Nadu government today (8 June) confirmed that there will be no increase in the domestic electricity tariff effective 1 July.

A tariff hike was expected because at the time of the tariff hike last year, the Tamil Nadu Electricity Regulatory Commission (TNERC) had announced a yearly tariff increase for a period of five years based on a year-on-year comparison of the Consumer Price Index (CPI) of April or 6 per cent of the tariff, whichever is lower.

The press release stated that though a 2.18 per cent hike (after adjustments) was due this July, the government has decided not to pass on the hike to domestic consumers and instead provide the amount as a subsidy. For industries and commercial establishments, the tariff hike would range from 13 paise to 21 paise per unit, it stated.

The announcement comes days after the newly-elected Congress government in Karnataka was criticised for the Rs 2.89 per unit hike in power tariffs.