July 08 2020
TN partially rolls back power tariff hike
04 April 2012

Four days after announcing a power tariff hike for the first time in nine years, the state government on Tuesday announced a partial rollback for domestic consumers.

The rollback, after protests from opposition parties, will benefit the middle and lower-middle class families. The rollback is expected to take the punch out of a series of agitations called by the opposition against the hike.

While the increase ranged from 50% to 106% for various categories of domestic consumers, the hike has been rolled back by only between 7.6% and 21%.

Tamil Nadu chief minister J Jayalalithaa, who announced the tariff cut in the assembly, said it would benefit about 1.5 crore families. One the reasons for announcing the tariff cut, she said, was that the government had received several representations from the general public about the hike placing a huge financial burden on them.

The high-end segment of the four categories of domestic consumers, which consumes more than 500 units every two months, will not benefit from the tariff reduction.

The maximum relief is 350 - for households that consume 500 units of power. Households that consume up to 100 units of power will benefit by 10 and those consuming up to 200 units will save 60.

Jayalalithaa said the government did not have the power to lower the tariff fixed by the Tamil Nadu Electricity Regulatory Commission (TNERC). "But the government is committed to minimize the burden on the people," she said, explaining that an additional subsidy of 740 crore would be allocated to the Tamil Nadu Electricity Board (TNEB) to compensate for the loss from the rollback.

The total power subsidy for the current financial year has now gone up to 4,294 crore.

The hike mainly affected consumers with low tension connections, including domestic and commercial users, offices and small industries that formed the bulk of the 1.87 crore metered TNEB connections. Around 13 lakh huts in the state and 20 lakh agricultural connections remain unaffected as they are provided free power at a subsidy of 1,885 crore.

by RoNaK   ---- www.chat.yavum.com



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